U.S. Steel Near End of Bear Phase?

The euro is collapsing and taking US equities with it. Nonetheless, let's have a look at the pattern that is developing in U.S. Steel (NYSE: X).

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.

  • Action-Oriented Trade Set-Ups in Stocks & ETFs
  • Macro Analysis of the Broader Markets
  • Detailed Technical Guidance for each Trading Idea
  • Live Interaction w/ Mike & Our Member Community
  • And Much, Much More!
Join Now! - Special Offer!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!