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?
CLICK ON CHART TO ENLARGE
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.