monkey catching an elephant

Over the past year, a few sectors (Transports, Bio-Tech, Banks and Russell 2000) have been weaker than the broad markets. For the broad market to move higher, “Risk On” traders/investors want these weak sectors, to start reflecting some strength.

Below looks at the patterns of these downside leaders. As you can see, each as created a series of lower highs since 2014/2015.

Will the third time be a charm and these sectors break falling resistance?

weak sectors creating series of lower highs may 17


To help push the broad markets higher, these sectors need to start reflecting some strength/break falling overhead resistance.

Each sector is testing a support zone at (1) above, not far below falling resistance.

To be optimistic about the broad markets breaking out to new all-time highs, traders/investors want breakouts to take place in these downside leaders over the past year.



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