Many if not all of the big name stocks in every sector look very weak right now. Check out John Deere (ticker DE) below. We see the all too familiar declining double top having formed. Worse, after 5 successful tests of long term support, DE chart has broken down and is now testing that same support turned resistance line from below. There is a 85% chance that it will not break back above IMO and soon it will run out of steam and plummet. This is a short seller's delight because of the volatility.
IF the chart can break STR again and get back in the channel then I would rethink this view but I don't think it can do so when so many other big name stocks are selling off. The big boys are heading for the door across the board IMO and we are being set up for a September bear move. All of the global economic data supports this view, just check out Mish's recent posts to see how many times he has used the word "plunge" in the past 45 days...
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