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When it comes to portfolio construction and which way to lean risk exposure, the technical situation in play right now has to rank up there pretty high!

Two of the broadest market indexes in the United States are back at resistance that has stopped their rallies over the past few years. Can these key markets push aside the 800 pound gorilla?

 

 

Are the U.S. broad markets the only one's facing key falling resistance lines? The 6-pack below was sent to Premium Members a few days ago.

 

 

This 6-pack reflects that world markets are also facing their own 800 pound falling resistance lines.

With worldwide market correlation extremely high, what the markets do at these resistance lines is one of the most important technical situations in years. Do we have another "Look Alike, Dominoes and Slippery Slides" set up at hand? See my January post here.

From a portfolio construction angle, one would want to protect long values here, by keeping stops tight. If a breakout would take place, lean more toward exposure to risk assets.

 

(c) Kimble Charting Solutions
blog.kimblechartingsolutions.com