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Strong markets struggling at breakout levels of late

The S&P 500, Banks, Small Caps and Transportation indices continue to climb higher, as the long-term trend remains up. The two charts below, look at performance over the past month and how each index is testing long-term breakout levels.

The chart below looks at how the above mentioned indices have performed over the past 30-days.

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These key markets are a little soft the past 30-days. The Power of the Pattern below looks at where this softness is taking place.

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Multi-year trends remain up for each of the indices above, as they create a series of higher lows and higher highs.

Each are testing key breakout levels at each (1), where a little softness has taken place the past month. Transports index (lower right) could be creating a pattern similar to what it did in 1999 and 2007. The odds of Transports creating an identical pattern to the 1999 and 2007 highs is low for sure. If Transports would turn weak at (1), bulls might want to keep a tight stop on positions.

Great news for the bulls if these breakout at (1). If they would breakout, each should attract buyers. Bulls don’t care to see weakness start taking place at each (1). Will be very interesting where each of these are 30 days from now!

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