Whilst the main indexes clawed 1% higher today, the coal sector took a major hit. Both Alpha Natural Resources (ANR) and Peabody Energy (BTU) declined by 2.2% and 3.8% respectively.
On a day when the indexes were trying to breakout, the typical retail holders of ANR and BTU will likely be confused, if not outright annoyed.
Yet, the coal sector remains one of the sectors that will be hardest hit in any general economic downturn.
BTU remains superior to ANR in most respects, but both will generally trade in the same manner.
In price terms, ANR has a very significant chance of retracing back to the soft rising support @ $7.50. BTU could easily slip to $25.00 within a few days.
What happens at those rising support trends will be important, and if support does fail, it could be a further provisional sign of trouble for the broader market.