BUZZ-Steel ETF: The cool down

** VanEck Vectors Steel ETF essentially met inverse head & shoulders (h&s) pattern proj with its late-Feb peak ; has since pulled back

** ETF became severely overbought after near 200-pct surge from its Jan-2016 trough to its Feb 2017 peak; advance included strong run from election-day close, SLX hit highest level since Sept 2014. Chart: http://reut.rs/2ngiAEr

** This as prices for steel and its raw materials in China rallied, and hopes built for President Trump's infrastructure spending plan

** Indeed, spot Iron Ore Idx 62% Fe Fines hit 2-1/2 year high in mid-Feb (Thomson Reuters Datastream)

** With (Other OTC: WWTH - news) its $45.39 late-Feb high, SLX nearly touched $46.00 inverse h&s pattern proj

** At that time, however, SLX/S&P 500 ratio leveled off, ETF outperformance waned; growth clawed way back vs value

** And SLX weekly RSI diverged; failed to confirm higher SLX level in Feb

** Meanwhile, spot iron ore index down 14 pct from its Feb peak; ETF sold off 16 pct into Mon low

** Since yet to stabilize, SLX can threaten $37.78/$36.16 support (Dec (Shanghai: 600875.SS - news) low/200-WMA)

** Weekly close below here can suggest risk for much deeper drop as trend of relative outperformance vs SPX turns down in earnest

** Top ETF holdings by pct TNA end-Feb include Vale (Swiss: VALE.SW - news) , Rio Tinto (Hanover: CRA1.HA - news) and ArcelorMittal (LSE: 0NSF.L - news)