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Basic materials is one of the weaker performing sectors over the last year, as IYM is trailing the S&P 500 by almost 20% (FCX by 35%). FCX is on support dating back to its 2009 lows and IYM is in a tight jam, up against falling resistance.
FCX is due a bounce on support and represents 8% of the holdings of IYM. If FCX can bounce here, it could help push IYM past resistance, which could help the broad market.
Should FCX fail to hold support and IYM break down at the flag, this lagging sector will continue to produce sub par performance numbers.