The most salient aspect to the enclosed chart of X is the week-long, bottoming-type price action between 42.00 (roughly) and 44.00. This is occurring 35% beneath the Feb high and after a stair-step decline that has the requisite number of legs to be deemed complete.

Let's keep in mind that X peaked at the Feb 16 high and has been ratcheting lower for four months, whereas the S&P 500 peaked on May 2. This suggests the former likely is at or near the end of its bear phase even if the SPX presses lower into month-end.

That said, any weakness in U.S. Steel must be contained above the 41.67 low from June 13 to avert a press towards 40.00.

By Mike Paulenoff

Mike Paulenoff is author of MPTrader.com (www.mptrader.com), a real-time diary of his technical analysis and trading alerts on ETFs covering metals, energy, equity indices, currencies, Treasuries, and specific industries and international regions.

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