Key Support Being Tested

Key support is being tested across major U.S. indexes.

The S&P is flirting once again with a supporting trend line from the 2009 lows.  The line has been briefly broken at times, so I would want to see a solid break over multiple weeks before being fully convinced that the uptrend is broken.

2014-04-15-ES_CHARTS

Small caps have significantly underperformed the broader market of late.  It broke under a smaller rising wedge last month, and is now hitting a support line that dates back to the 2009 lows.

2014-04-15-IWM_CHARTS

Perhaps the most interesting evidence of market support is the resilience that junk bonds (JNK) continue to evidence.

2014-04-15-JNK_CHARTS

 

 

 

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