The Broad market needs Basic Materials to break from this clean falling channel to break from its flag/Pennant resistance (see flag resistance) 

 Suggested to pick up IYM at (3) due to the potential of an “Right Shoulder” forming and suggested at the time IYM could pick up a quick 10% and it did in a matter of days(see chart here)

If IYM isn’t owned at this time, I would want to be a buyer on an upside breakout, with a stop a couple of percent below line (1).  Resistance remains strong just like Mr. Clean at this time!

How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past