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U.S. Markets Re-Testing Resistance

|Includes: QQQ, SPDR S&P 500 Trust ETF (SPY)

Here we go again. After a series of marginally down days, the Bulls have pushed U.S. markets back to trendline resistance that dates back to the 2007 top.

The S&P (SPX) has a long term "pennant" pattern, and is pushing against the upper resistance of that pattern.

Nasdaq (ETF: QQQ) has a rising wedge pattern, and is pushing against the upper resistance of that pattern.

The financial sector (ETF: XLF) is also testing a resistance trendline dating back to late 2006.

These challenges have been playing out for a couple of weeks now, but I expect that the resolution of these challenges will set the market direction for a least the next quarter, and maybe much longer.