Research in Motion (RIMM) broke above resistance with a sharp advance in early trading on Monday. The chart shows resistance around 72 from the December-February highs. In addition, a small inverse head-and-shoulders formed over the last three weeks and RSI held momentum support at 50. Click this image for details... READ MORE
Stocks surged with a better-than-expected employment report on Friday. The Russell 2000, S&P 500 Equal-Weight Index, Nasdaq 100 Equal-weight Index and S&P 400 MidCap Index all recorded new 52-week highs. The Nasdaq 100, Dow and S&P 500 also surged, but remain just below their... READ MORE
Net New Highs survived their third corrective period and surged over the last few weeks. The chart below shows Nasdaq Net New Highs surging back above +200 this week. Prior surges in October and early January hit the +200 area. Notice that there have been three corrections over the last... READ MORE
Oracle (ORCL) surged in mid February and then stalled over the last two weeks. The resolution of this consolidation will signal the next directional move. A break above resistance would be short-term bullish, while break below support would be bearish. Click this image for details... READ MORE
With further strength this week, the market summary table moved from -2 to +9. The only negative indications come from the Nasdaq AD Line and strength in the Dollar. In addition, relative weakness in the large-cap indices (SPY and DIA) is a concern. The rally over the last four weeks... READ MORE
The S&P 500 ETF (SPY) stalled for the third day running as the ETF formed its third indecisive candlestick in a row. While this indecision can sometimes foreshadow a reversal, stalling is not the same as weakness. At this point, it is just a rest within the advance,... READ MORE
A look at the CandleGlance page for the Dow stocks shows Alcoa (AA) and American Express (AXP) lagging in February. The Dow and S&P 500 were up sharply in February, but these two stocks simply consolidated and shows relative weakness. Click this image to see all Dow stocks.... READ MORE
For the second day running, the S&P 500 ETF (SPY) stalled with an indecisive candlestick. Notice the small body (open-close) and the modest upper-lower shadows (intraday high-low). These candlesticks show a stalemate between buyers and sellers. DIA and QQQQ formed similar candlesticks. Even though IWM and MDY hit... READ MORE
Technically, there is a case for a medium-term uptrend. SPY recorded a 52-week high in January and the February reaction low is above the early November reaction low. Also, consider that the Russell 2000 ETF (IWM) and S&P 400 MidCap ETF (MDY) are already back near their January... READ MORE
The Dow Industrials is attempting to turn positive for 2010. The senior Average closed at 10,428 on December 31st and flirted with the 10428 area 7-8 days ago. After falling back below 10300 last week, the Dow is making another go at positive ground. Click this image for details... READ MORE
Stocks moved higher on Monday with broad participation. All of the major indices were up 1% or more. All sectors were up with the Consumer Discretionary SPDR (XLY) leading the way. The Financials SPDR (XLF), however, was clearly the weakest link with a fractional gain (+.27%). This could develop into... READ MORE
The Market Carpet for the Rydex Sector Funds shows the Rydex Retailing Fund (RYRIX) leading the way higher last week. Notice that the slider at the bottom is set at 5 days to show last week's results. The Rydex Transportation Fund (RYPIX) came in second with a 1.... READ MORE
All daily and weekly intermarket charts have been updated ( click here). Below for four charts featuring some highlights from last week. Bonds had a big week as the 30-year Treasury Bond ($USB) surged over 2%. The US Dollar Index ($USD) is overbought, but refuses to give up gains. West Texas... READ MORE
On the daily chart, SPY surged to resistance around 111 and then consolidated the last few days. The ETF appeared headed down after a sharp decline on Tuesday and weak open on Thursday, but recovered on Thursday afternoon and closed strong. This long-red-hollow candlestick represents a reversal day. Follow through... READ MORE
The Retail HOLDRS (RTH) recorded a 52-week high with help from Home Depot (HD). RTH broke above channel resistance in mid February and above its December highs this week. The indicator window shows both RTH and HD. Notice how HD also moved above its December high. Click this chart for... READ MORE
It remains a tricky period for the stock market. Overall, the market summary table comes in at -2, which is slightly bearish. There are, however, a few indicators that could go either way. The McClellan Oscillators both surged above +50 in mid February, but only for a day and I... READ MORE
Before looking at the falling flag on the 60-minute chart, let's review some candlestick action on the daily chart. There is no change in the overall analysis as SPY appears to be developing a falling price channel. A break above 111.10 would throw cold water on this... READ MORE
After battling its 50-day moving average the prior five days, the Dow Diamonds (DIA) gapped down in early trading on Thursday. This gap reinforces resistance around the 50-day and is considered short-term bearish as long as it remains unfilled. Click this chart for details.... READ MORE
There is not much change on the daily chart. SPY hit resistance in the 111 area over the last few days. This resistance zone stems from broken support and the early February high. It also marks a 62% retracement of the January-February decline. Should a lower high form, I can... READ MORE
Since peaking in late November, bounces in the Euro ETF (FXE) have been limited to three days. In fact, except for one 3-day bounce in late December, bounces have actually been 1-2 days. The Raff Regression Channel with extensions defines the current downtrend. A break above the upper extension is... READ MORE
After yakking about SPY resistance in the 111 area and RSI resistance in the 50-60 area for at least a week, it finally came to pass. With a broad decline on Tuesday, SPY backed off the potential resistance zone to turn it into a confirmed resistance zone. All major indices... READ MORE
Apple (AAPL) met resistance at a key retracement zone last week and broke below the wedge trendline with a sharp decline today. Notice that Apple was turned back in the 50-62% retracement zone. With the wedge break, the next target is the support zone around 187.50. Click this chart... READ MORE
Even though the advance slowed over the last few days, the S&P 500 ETF (SPY) continues to hold its gains as buying pressure exceeds selling pressure. On the daily chart, SPY is up around 5% in the last two weeks and trading in a potential resistance zone around... READ MORE
The sector SPDR perchart reflects a mix market (at best) for 2010. The S&P 500 is down around 2.46% since January 6th. Of the nine sectors, only three are up (consumer discretionary, industrials and consumer staples. The other six sectors are down with technology and materials shows... READ MORE
When marking support, resistance and reversal levels, zones are preferred to exact levels for two reasons. First, indices and ETFs are based on a basket of stocks. With more than one stock influencing price, we cannot expect support, resistance or reversal levels to be EXACT. Second, there are many buyers... READ MORE
With a quarter point hike in the discount rate, the Fed surprised some in the media, but few in the bond market. As one of the most interest rate sensitive asset classes, the bond market often moves before an actual Fed move. First, the Fed has been jawboning about the... READ MORE
Raytheon (RTN) shows relative strength with a break above the January high. The S&P 500 and RTN are shown in the indicator window. Notice that RTN is trading above its January high, but the S&P 500 remains well below its January high. Defense is attracting money.... READ MORE
Transition periods are tricky. The bulk of the evidence shifted towards the bears on February 5th, but the Market Summary Table shifted to +2 this week, which slightly favors the bulls. Three items are responsible for this shift. The McClellan Oscillators both moved above +50. The Nasdaq is outperforming the... READ MORE
Even though SPY closed at its highest close of the month, I still think the ETF is in a resistance zone and this oversold bounce is getting long on tooth. In short, yesterday's advance does not change my overall view. SPY was oversold in early February and this... READ MORE
With an advance back to the low 70s, RIMM is one again trading near resistance. The stock was turned back here in mid October and mid December. Also notice that a harami formed on Friday-Tuesday and RSI become overbought last Friday. The 3 week trend is still up, but traders... READ MORE
The bounce over the last seven days does not look that strong and resistance is nigh. First, I pointed out mixed breadth and weak volume on Wednesday. Second, individual days show more indecision than strength. After plunging from 115 to 105 (high to low), SPY was oversold in early February... READ MORE
Juniper (JNPR) is down for the year, but On Balance Volume (OBV) is up so far in 2010. Joe Granville, creator of OBV, postulated that volume precedes price. This simple indicator broke resistance with a surge in early February. The stock is also showing signs of life with a little... READ MORE
Stocks started strong with a gap up on the open and finished strong with a close near their highs for the day. Overall volume was not that strong and Net Advancing Volume was mixed. NYSE Net Advancing Volume ($NYUD) finished at +877, while Nasdaq Net Advancing Volume ($NAUD) finished at... READ MORE
The US Gasoline ETF (UGA) surged off support with a gap and big move on Tuesday. This successful support test keeps the overall uptrend in place. A break below the Dec-Feb lows would reverse the medium-term uptrend. Notice how closely UGA and USO track. Click this chart for more details.... READ MORE
Today I am starting with the Russell 2000 ETF (IWM) and Nasdaq 100 ETF (QQQQ) because both are showing resilience with pretty good advances over the last two days. Both broke above wedge trendlines and finished near the high for the week. It is positive to see small-caps and large-techs... READ MORE
Atmos Energy came across the oversold RSI scan as 14-day RSI moved above 30 on Thursday. Also notice that the stock bounced right back to its 200-day moving average. Click this chart for details... READ MORE
On balance, the evidence still favors the bears at this stage. We are, however, still in a transition period or the early stages. The evidence favored the bulls from early September to February 5th. On February 5th, the sum total turned negative to favor the bears for the first time... READ MORE
These daily SPY updates are short-term in nature and subject to change as new price data and information come to light - which is hourly. The objective of this analysis is education. It is not meant as a recommendation to buy, sell or sell short. The only advice I have... READ MORE
After a sharp (~10%) decline this year, Microsoft (MSFT) is nearing its first support zone around 27-28. Support here stems from the October gap and the 38% retracement. MSFT firmed around 28 over last four days and yesterday's range was the narrowest of the last six days. Click... READ MORE
Today I am going to show four daily charts: SPY, RSP, IWM and QQQQ. This is an interesting quartet. SPY broke the late November low and exceeded the 62% retracement. The decline from 115 to 105 was the deepest since March and did enough technical damage to turn medium-term bearish... READ MORE