As the stock market struggled to move higher last week, it was pummeled by news out of Washington D.C. that kept investors on edge every day. The failure to reach the prior high on the third rally creates the right shoulder (RS) and then the break of support (line a) completes the top formation. In my experience this is also a key trait of successful investors and traders. All successful advisers, investors or traders are wrong some of the time, myself included. The systematic weekly analysis of the key sectors warned last Monday that the relative performance and OBV analysis on the Materials Sector Select (XLB) were both negative (see arrows).

Source: Forbes March 17, 2018 21:11 UTC