The 200-day moving averages for the S&P Mid-Cap 400 and the S&P Small-Cap 600 are already trending lower and this key moving average for the S&P 500 turned lower over the past week. This puts all three indexes below their falling 200-day SMAs and... READ MORE
* Key Moving Average Turns Lower. * Mid-caps Trigger Bearish Breadth Signal. * Small-caps Lead New Low Expansion. * Four New Signals on Sector Table. * Risk Aversion Indicators Surge. * Treasury Bonds Extend Surge. * Consumer Discretionary Sector Breaks Down. * Oil Extends Decline. * Gold Forms a Bull Wedge. * Art's Charts ChartList Update. ... Stocks are... READ MORE
* Oversold and at the 200-day. * Pennant Evolves into Wedge. * SOXX and Semis Hit Support. * A Correction within Uptrend for PALL. ... Oversold and at the 200-day ... The S&P 500 and S&P 500 SPDR (SPY) are at interesting junctures because both are oversold and both are at their... READ MORE
Cardiovascular Systems (CSII) shows bullish price action with signs of accumulation that could lead to higher prices. First and foremost, the long-term trend is up because CSII recorded a new high in early March and is above the 200-day SMA. The 50-day SMA (green) is also above the 200-day SMA... READ MORE
* Walking Down the Lower Band. * Swings are Getting Bigger. * Selling Pressure Expands to Defensive Sectors. * Bearish Breadth Thrust for XLP and XLV. * On Trend on Youtube. ...Walking Down the Lower Band ...Even though the weight of the evidence has yet to turn bearish for the S&P 500, the... READ MORE
* Retail, Banks, Semis and Oil. * S&P 500 Corrects with Bigger Uptrend. * Index Breadth Table Remains Net Bullish. * AD Percent Down Days Weigh in May. * Small-caps Lead the Way Lower. * Charts to Measure Risk On/Off. * Sector Shift in May. * Sector Breadth Table Remains Bullish. * Healthcare ETFs Hold Up... READ MORE
An existing uptrend and short-term breakout on high volume point to higher prices for Boston Scientific. The chart below show BSX hitting a new high in early March and then falling rather sharply into mid April. A volume spike punctuates the plunge below 35 and this looks like a selling... READ MORE
Ross Stores (ROST) recently bounced off its rising 200-day SMA with a bullish candlestick pattern and short-term RSI broke to its highest level of the month. It looks like the short-term pullback is ending and the bigger uptrend is resuming. ROST plunged in November-December with a sharp decline below the... READ MORE
The bearish failure swing is a bearish RSI signal from Welles Wilder, creator of RSI. Note that this signal is NOT the same as a bearish divergence, even though a bearish divergence is also possible at the same time. A bearish failure swing has four parts: RSI moves above 70... READ MORE
* Defensive Sectors Have Strongest Charts. * Offensive Sectors Have Yet to Break Down. * S&P 500 Gets a Bounce. * A Bearish Failure Swing for the Russell 2000. * Large-caps Lead New High List. * Discretionary and Communication Sectors Take Hits. * Housing versus Retail. * Software versus Semis. * Treasury Bonds Extend on Breakouts. * Measuring... READ MORE
General Electric (GE) is one of the worst performing stocks over the last two years, but the stock is perking up in 2019 and outperforming in May. The S&P 500 is down 3.8% so far this month and GE is up 1.5% after a big surge... READ MORE
* Triple 90% Down Volume Day. * Breadth Table Update. * Four Steps Up and One Step Back. * SPY Hits Support and Becomes Oversold. * Interest in Tariffs and Fed. Triple 90% Down Volume Day Stocks were hit with strong selling pressure again on Monday with the S&P 500 SPDR falling 2.... READ MORE
The S&P 500 was down 2% last week and the Nasdaq fell 3%. Stocks that gained on the week showed relative and absolute strength. Stocks that fell less than 2% showed relative strength. The average semiconductor stock within the S&P 1500 was down 5% last week... READ MORE
* Small-caps and 3 Sectors Weigh. * Everywhere and Nowhere. * Immediate Trend is Still Up. * Another Possible Support Zone. * Index Breadth Table Survives 90% Down Days. * Yield Spread Remains Positive for Stocks. * Mean-Reversion Setup Brewing. * Art's Charts ChartList Update. ... Small-caps and 3 Sectors Weigh Stocks came under broad pressure in... READ MORE
A basic concept of technical analysis is that broken support turns into future resistance. This concept is proving true for Micron (MU) as it returned to broken support in April and backed off the last two weeks. The chart shows MU breaking down with a support break in September and... READ MORE
Triple 90% Down Day It is way too early to call for a major top, but we do have a short-term breadth signal that points to further downside. The chart below shows AD Percent for the S&P 500, S&P Mid-Cap 400 and S&P Small-Cap... READ MORE
Ebay (EBAY) reversed its downtrend with a reversal pattern and break above the 200-day SMA in late January and early February. After digesting its gains with a corrective pattern in March-April the stock broke out again with a gap and appears headed higher. The stock formed a rare island reversal... READ MORE
The "Best Six Months" strategy suggests that the best time to own stocks is from November to April, and the worst time is from May to October. Testing over the last 25 years confirms the performance differences between these two periods, but this strategy still leaves money on... READ MORE
Docusign (DOCU), a company that provides e-signature solutions, started trading on August 27th and surged over 30% on its IPO. The stock advanced another 65% after this initial gain and then fell back to the IPO price in October. Notice that the six month lockup period ended on October 24th... READ MORE
Palo Alto Networks (PANW) is a leading cyber-security stock that fits into the technology sector. Needless to say, the Technology SPDR (XLK) and the EW Technology ETF (RYT) are the leading sectors here in 2019. PANW took a break with a consolidation over the last eight weeks, and this could... READ MORE
* S&P 500 Reaches 2018 Highs. * Watch the Immediate Uptrend. * IWM Holds Flag Breakout. * Small-caps Breadth Indicators Net Bearish. * %Above 200-day EMA Hits Milestone for XLF. * Utilities Correct within Bigger Uptrend. * Stock Performance During Earnings Season. * ChartList Updates. * About the Art's Charts ChartList. ... S&P 500... READ MORE
* Cup-with-handle Taking Shape in IWM. * Bond ETFs Reach Potential Reversal Zone. * Art's Charts ChartList Update (SMTC added). Art's Charts featured IWM on Monday with a bullish chart and a lagging price. Even though IWM remains well below its September highs, the ETF broke out of a... READ MORE
Coupa Software is one of the best performing stocks in 2019 with a 50% advance year-to-date. In addition, the stock is up over 80% from its late December low. Too far too fast you might say? Perhaps, but the stock digested its gains with a consolidation the last two months... READ MORE
The ideal scenario for traders is to buy after a pullback for a good reward-to-risk ratio. When the long-term trend is up, I look for indications of support and signs that an upturn is in the making. The chart for Ciena sports a classic setup with a confluence of indicators... READ MORE
* Small-caps Continue to Lag. * S&P 500 Nears All Time High. * IWM Tests Breakout Zone. * Index Breadth Table Update. * Industrials and Finance Come to Life. * Art's Charts ChartList Update. Back in the Saddle After a vacation and market hiatus, today's commentary will review the broader... READ MORE
This article will provide links and symbols for some of the charts used in the On Trend episode focusing on breadth indicators (Using Breadth Indicators to Weigh the Evidence). Episode details are shown below and you can watch a recording on our Youtube channel. The idea behind these indicators is... READ MORE
Learning about and tracking growth stocks in unique industry groups is an ongoing process that can help traders and investors outperform the broader market. This article will provide links to some of the resources from the On Trend episode focusing on growth stocks (Finding, Tracking and Analyzing Growth Stocks). A... READ MORE
This post will provide a resource link and scan code from the On Trend episodes focusing on RSI for trend-following and momentum strategies. This is a two-part series that goes from RSI basics to a twenty year backtest on stocks in the S&P 500. These episodes will show... READ MORE
The Emerging Markets ETF (EEM) experienced a trend-momentum shift over the last few months as RSI moved from its bear range to its bull range. In addition, RSI came close to 70 (69.5) twice and EEM broke above its 200-day SMA. The downtrend reversed and I expect higher prices... READ MORE
The Biotech SPDR (XBI) is trading at a make-or-break point as it consolidates near the 40-week SMA. Traders should watch for the resolution of this consolidation because it will dictate the next directional move. The chart below shows XBI surging from the mid 60s to the lower 90s and then... READ MORE
AT&T (T) was one of the worst performing stocks in 2018 with a 20% decline and 52-week low in late December. 2019 is starting out much better with a double-digit gain and a break above the November-February highs, which also mark neckline resistance of an inverse head-and-shoulders pattern.... READ MORE
* S&P 500 Stalls within Uptrend. * Upswing Dominates Weekly SPX Chart. * Index Breadth Table Remains Bullish. * IJR: Failure at 200-day or Mere Correction? * Sector Table - Staples Get a Lift. * XLI Hits Make-or-break Zone. * UTX Consolidates around the 200-day. * MMM Consolidates above 200-day. * Palladium Takes a Tumble. * ChartList Updates.... READ MORE
* S&P 500 Holds as Russell Rolls Over. * Plenty of New Highs in $SPX. * ChartList Updates - 3 Additions. Are we in a bull market, a bear market or neither? At this point, the evidence is still more bullish than bearish, but there are clearly some pockets of weakness... READ MORE
TJX Companies (TJX) is part of the S&P 500 and the Consumer Discretionary SPDR (XLY). It is also part of two growth ETFs (PWB and PXLG). Even though TJX is part of an economically sensitive sector, I would put them in a different category because they are known... READ MORE
* RSI Holds Bear Range for S&P 500 * A Classical Reversal Area for Russell 2000 * Small-cap Breadth Indicators Flip * Selling Pressure in Key Groups * ChartList Updates RSI Holds Bear Range for S&P 500 The S&P 500 remains above its slightly rising 40-week SMA, but this... READ MORE
* Bigger Downtrends or Simply Resting? * Bank ETFs Fail at 200-day SMAs. * Small-cap Indexes Fail near Retracements. * Oil Nears Potential Reversal Zone. * Focus on the True Leaders. * S&P 500 Maintains Uptrend. * Index Breadth Table Remains Bullish. * Sector Breadth Table is More Mixed. * Staples, Utilities, REITs and Tech. * Bonds Extend... READ MORE
The Russell 2000 iShares (IWM) is not only lagging the S&P 500 SPDR (SPY) and the Nasdaq 100 ETF (QQQ) in March, but it is also under selling pressure and down month-to-date. Typically, I am not concerned with relative weakness in small-caps when they are simple up less... READ MORE
There are often smaller patterns within larger patterns and traders can get a jump on a bigger breakout by acting on the smaller pattern first. For example, a cup-with-handle is a bullish continuation pattern that typically forms over a few months. A falling flag is also a bullish continuation pattern,... READ MORE
Advance Auto Parts (AAP) hit a new high in November and then moved into a corrective phase. Keep in mind that a correction can involve a decline or a consolidation, or even a combination of the two. AAP fell back towards the rising 200-day SMA in December and then stalled... READ MORE