Retreats at Resistance
This week’s sell-off occurs at long term resistance trend lines on a variety of charts. All major U.S. indexes remain above longer term support trendlines, though they have a bit of room to fall before hitting such support.
Here is how I see SPY, falling from the upper resistance of its rising wedge as the pattern nears its end:
Nasdaq (QQQ) is also hitting the upper trend line of its chart. It may be in a rising wedge for the last year, but the longer term trend is that of a rising channel:
This is how I see the Russell 2000 ETF (IWM), which has actually broken under the support:
And here is the Financial sector ETF (XLF), which is hitting 50% Fibonacci retracement (from 2007 top to 2009 bottom) resistance in addition to the upper resistance of its rising wedge.
Junk Bonds are holding up well, but Dr. Copper is not. At all. Copper may be starting a serious breakdown: