On 5/3 the Power of the Pattern reflected in the chart below that RFG had doubled the 500 index’s performance since the 2009 lows and that it had created a pattern that could pull the broad market lower! (see post here)
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Since the 5/3 posting, which highlighted a bearish pattern in RFG it has declined 6.7% and the 500 index has declined 5.4% in 19 days. The chart below reflects that RFG is on a key support line that needs to hold!
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This high flyer/market leader is on support that is important for this ETF and the broad markets. A break of support in RFG pulled the market lower 19 days ago and did in 2008 as well….RFG’s price action has been important in the past and I suspect it will be in the future!
