The chart below reflects the past 60 day returns of the broad market and some very hot sectors.


Some of these sector ETF’s have doubled to tripled the 500’s performance over the past 60 days.  Below is a Micro (close up)  look at these leading sectors and a Macro (Big Picture) look at the 500/Wilshire 5000 and NYSE Index’s.


Macro Summary….Key broad markets remain facing the top of their flag/pennant resistance lines.

Micro Summary…  Banks, Homebuilders and Basic Materials/FCX have been really hot over the past 60 days.  The Power of the Pattern would suggest to keep a close eye on the Micro moves of these leading sectors in the upcoming days, due to the very bearish pattern they created last Thursday

As I shared with Premium Members last week, one day DOES NOT make a trend, yet the single day negative action in these leaders at resistance(on Thursday)  should be respected on both a Micro and Macro basis.

Keep an extra close eye on what XLF, KRE, XHB, IYM and FCX does in the upcoming days as they gave us a great hint on the future direction of the broad stock market over 60 days ago at the lows (see bullish pattern at the lows) and I suspect they will give us a great Micro tip again!  

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