Two things to watch this week...

ArcelorMittal – MT is testing the downtrend that began at the end of March after finding support around the $20 level.  It is important to understand that there isn’t anything magical or mysterious about a trendline on a chart.  It is simply a graphical depiction of the forces of supply and demand that exist within a market.  In this case, the Bears have been in control of the market since the end of March.  The fact that the trendline is being tested could illustrate that the Bears are done with their selling and the Bulls may be about to overpower them and take control of the market.  There is support around the $20 level because was resistance in August, October and November of 2016.  It was also an important support level in July and August of 2015.

Intel Corp – INTC is testing support around the $34 level.  There is support around these levels because they were support in November and December, and in July and August of last year.  The action in this stock is very weak when compared to the broader technology market.  Most other bellwethers are neutral while INTC has been in a significant downtrend over the last few weeks.  Longer-term, if it rallies there will probably be resistance around the $38 level because there was resistance there in October, November, and again in January.