DBB Continues to Lead the Way Down
The charts of the S&P 500 Index ( $SPX:NYSE ) and Power Shares Base Metals Fund ( DBB:NYSE ) , ignoring the difference in value, are almost mirror images and for that reason I believe that DBB is a Leader of the $SPX.
As I suggested, this AM, the shares of PS DB MultiSect Met ( DBB:NYSE ) or PowerShares Base Metals Fund ( DBB:NYSE ) were a short candidate at 21.10 . The shares opened at 21.00 but recovered to 21.08 by 09:50. This was the best entry point of the day and an entry at that level would have left one with a gain of $0.51 / share based on the Close at 20.56 .
After the intraday High the action reversed and never "looked back". The price dropped through two Fibonacci retracement support levels and closed on a Fibonacci retracement sub-level at 20.56 . Should this support fail 20.50 and 20.39 are the immediate targets. If the price drops below 20.39 then sub 20 levels may be attainable.
REMEMBER this LEADER mirrors the $SPX so consider any sudden reversal in the Index as a warning to exit position.
The potential major Support levels, based on Fibonacci ratios, are :
- 20.50
- 20.39
- 20.25
- 20.16
- 20.02
- 19.92
- 19.76
The calculated Daily Support and Resistance levels are :
- R4- 22.29
- R3- 21.77
- R2- 21.25
- R1- 20.91
- DC- 20.56
- S1- 20.39
- S2- 20.21
- S3- 19.69
- S4- 19.17
