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Preferred Stock ETF (PFF) has performed very well over the past 12 months (nice Capital appreciation along with a high income stream). Anyone who has been an owner of this ETF should be pleased with its NAV almost matching the S&P 500's gain!
Since last August PFF has remained above a rising support line, until about a week ago, when PFF broke below the support of a rather large bearish rising wedge at (1).
Did selling pressure take place in PFF because investors are concerned that their dividend stream will be taxed at a higher rate? Will investors want to take profits before 12/31/12? I don't know!
What is known...two-thirds of the time rising wedges like this suggest lower prices are in store. Odds are above average that this support line break will see a few more investors step forward and "harvest their gains!"