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