US Steel Has Come Unhinged, Could Imply Economic Retrenchment is in Progress

Whatever unhinged United States Steel Corp. (X) yesterday is continuing today, and has pressed the price structure beneath its prior, two significant pullback lows, at 30.73 (Mar 27) and at 30.71 (Feb 1), which has completed the establishment of a multi-month top formation in the Steel name.

Inability of X to claw its way back above the breakdown plateau at 30.75 will keep it vulnerable to lower technical targets at 24.20-23.80, and possibly to 21.00-19.00 thereafter, to complete a major correction in the aftermath of the larger advance from 6.15 (Jan 28, 2016) to 41.83 (Feb 21, 2017).

Such a serious period of weakness in X implies disappointment about the conditions of and prospects for the U.S. and global economies, the Trump pro-growth agenda, and health of international trade.