Below looks at the Wilshire 5000, one of the broadest stock indices in the world. This key index is undergoing a key“strength test” right now!

(Click on image to enlarge)

Line (1) became key resistance for months and months in 2015.

A couple of months ago the Wilshire Index broke above key resistance, which was a positive sign of strength. Softness of late has taken the index to test old resistance as new support at (2).

The Global Risk On trade wants/needs support to hold at (2). If it does, it would send a positive message to stocks in the states and potentially globally.

If the Wilshire is to remain strong, support needs to hold at (2)!