Kimble Charting Solutions Blog

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A resistance line dating back to the early 1980's continues to influence Apple almost 30 years later and the NDX 100 (see NDX hit hurdel post here)

The above monthly chart reflects that Apple hit this 30-year resistance line and has backed off almost $85 from its 2012 highs.

The lower right inset above reflects that once Apple broke its 2012 rising channel, it has created a series of lower highs. This 30-year resitance line is influencing Apple, which can greatly influence the NDX 100 and the broad markets!

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The Russell 2000 in 2007 was spot on about the future of the broad market, as it was creating lower highs and diverging from the S&P 500 index.

Now turn the clock forward 5 years and the Russell is creating lower highs from a year ago, diverging from the S&P 500 again.

The Russell find itself testing a key support line, that if broken will most likely pull the broad market down with it. Ole Joe Friday shares that the Russell has been a quality leading indicator for key moves in the broad market, so keep an eye on how the Russell 2000 handles this support line!

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U.S. Dollar is now facing a falling 10-year resistance line and Dollar bullish sentiment is almost reaching 80%. 

 Despite these high bullish readings, if the Dollar succeeds in a breakout, odds move up considerably that "Deflation/Falling prices" picks up speed.

One of the most "out of favor/uncrowded trades" at this time is taking place in the mining stocks sector, which have been hit very hard the past 6 months. The metals and mining ETF (GDX) is down 30% since its 2011 highs, a much bigger decline than Gold and the S&P 500 have experienced over the past 6 months.

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GDX created a large bullish wick at support last week and is attempting to break a steep falling resistance line, with sentiment levels reflecting very few metals bulls!

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Gold finds itself on a potential support line at the same time the number of Gold bulls has reached levels seldom seen the past 4 years.

Oversold bounces often take place when few investors expect a rally to happen... when it comes to the metals complex one thing is for sure right now, very few expect a rally to take place!

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Nine days ago the Power of the Pattern suggested that Copper could drag the 500 index lower (see post here)

Copper is often viewed as a predictor of the "Economic Weather" that is about to come.  Copper is breaking key support and below is flag pattern at (1) above.  In the past Copper breakdowns have suggested a slowing global economy!