DBB Continues to Lead the Way Down

The charts of the S&P 500 Index ( $SPX:NYSE ) and Power Shares Base Metals Fund ( DBB:NYSE ) , ignoring the difference in value, are almost mirror images and for that reason I believe that DBB is a Leader of the $SPX.

As I suggested, this AM, the shares of PS DB MultiSect Met ( DBB:NYSE ) or PowerShares Base Metals Fund ( DBB:NYSE ) were a short candidate at 21.10 . The shares opened at 21.00 but recovered to 21.08 by 09:50. This was the best entry point of the day and an entry at that level would have left one with a gain of $0.51 / share based on the Close at 20.56 .

After the intraday High the action reversed and never "looked back". The price dropped through two Fibonacci retracement support levels and closed on a Fibonacci retracement sub-level at 20.56 . Should this support fail 20.50 and 20.39 are the immediate targets. If the price drops below 20.39 then sub 20 levels may be attainable.

REMEMBER this LEADER mirrors the $SPX so consider any sudden reversal in the Index as a warning to exit position.

The potential major Support levels, based on Fibonacci ratios, are :

• 20.50
• 20.39
• 20.25
• 20.16
• 20.02
• 19.92
• 19.76

The calculated Daily Support and Resistance levels are :

• R4- 22.29
• R3- 21.77
• R2- 21.25
• R1- 20.91

• DC- 20.56

• S1- 20.39
• S2- 20.21
• S3- 19.69
• S4- 19.17