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:

2014-03-13-SPY_CHARTS

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:

2014-03-13-QQQ_CHARTS

This is how I see the Russell 2000 ETF (IWM), which has actually broken under the support:

2014-03-13-IWM_CHARTS

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.

2014-03-13-XLF_CHARTS

Junk Bonds are holding up well, but Dr. Copper is not.  At all.  Copper may be starting a serious breakdown:

2014-03-13-JJC_CHARTS

 

 

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