Stock market bulls want to see breaks here, quickly!
Over the past year, a few sectors (Transports, Bio-Tech, Banks and Russell 2000) have been weaker than the broad markets. For the broad market to move higher, "Risk On" traders/investors want these weak sectors, to start reflect some strength.
Below looks at the patterns of these downside leaders. As you can see, each as created a series of lower highs since 2014/2015.
Will the third time be a charm and these sectors break falling resistance?
CLICK HERE TO ENLARGE CHART ABOVE
To help push the broad markets higher, these sectors need to start reflecting some strength/break falling overhead resistance.
Each sector is testing a support zone at (1) above, not far below falling resistance.
To be optimistic about the broad markets breaking out to new all-time highs, traders/investors want breakouts to take place in these downside leaders over the past year.
See more of our research and membership options at Kimble Charting Solutions.
President of Best Minds Inc.
8 年Check out what Goldman, Soros, and Spitznagel are saying. Sounds like they are concerned about this market too, and are placing big bets on their opinions. Chris, my Weekly page on the Besty Minds Inc website has recent articles over the last week on all these big names. Keep watching these pressure points. Computers are not listening to the public or experts, but they are listening to the math.
Power of the Pattern: Concise - Timely - Actionable Chart Research
8 年Thanks for sharing Edward, much appreciated. Chris