-SPY Bounces After Indecision -SPY Hits Key retracement on Intraday Chart -China and Japan Lag -Net Advancing Volume Not that Strong -Transport ETF Tests Broken Resistance -Bollinger Bands Tighten for SMH -Autonation (AN) Hits Support -Ford (F) Breaks Wedge Resistance -Gilead (GILD) Maintains Uptrend -Intuit (INTU) Bounces off Support -Lowe&... READ MORE
Since early July, the Shanghai Composite ($SSEC) and the Nikkei 225 ($NIKK) have been lagging western European stock markets and the US. The PerfChart below shows the Shanghai Composite is actually down since July and the Nikkei is barely positive. In contrast, the US and western European indices are up... READ MORE
Bollinger Bands have been contracting as Intel (INTC) consolidates over the last few weeks. The theory behind Bollinger Bands is that volatility contractions often give way to volatility expansions. Look for a range break to trigger the next directional signal. Click this chart for details.... READ MORE
-Bulk of the Evidence Remains Bullish -A Blip in the Uptrend -Playing Short-term Pullbacks -Big Picture Review -Nasdaq McClellan Oscillator Lags -Volatility Indices Testing Lows -Dollar Gets Oversold Bounce -Crude Breaks Support -Gold Slips as Dollar Bounces -Bonds Firm as Stocks Fall -Breakouts Not Holding (ERTS and AZO) -Click here... READ MORE
The bears were given something to chew on with an outside reversal day for SPY. First, a reversal formed when Wednesday's high was above Tuesday's high and Wednesday's close was below Tuesday's close. Second, an outside day occurred because Wednesday's... READ MORE
The predefined scan page provides a quick glimpse of underlying strength or weakness in the stock market. At the top of this page, new 52-week highs are comfortably outpacing new 52-week lows. Click the number (129 Nasdaq and 163 NYSE) to see a list of market leading stocks. Click this... READ MORE
Broken support turns into resistance. This basic tenet of technical analysis will be getting a test as the Nasdaq 100 ETF (QQQQ) reached broken support. For now, I would consider this "potential" resistance because the trend since March is clearly up. Click this chart for details.... READ MORE
-Medium-term uptrend dominates decisions -SPY is short-term overbought -SPY forms bull flag on 60-minute chart -Euro and stocks zigzag together -Oil falls from resistance -Bonds cue from commodities -ATVI surges off support -ERTS stalls at key retracement -DYN breaks channel resistance -HBAN battles breakout -KEY pulls back after breakout -Link... READ MORE
The Consumer Discretionary SPDR (XLY) surged over 10% this month and then stalled with two doji at the end of last week. These candlesticks signal indecision that can foreshadow a short-term pullback. Also notice that 14-day RSI moved above 70 to become overbought for the first time since early August.... READ MORE
With a surge over the last two weeks, the AD Line and AD Volume Line for the NYSE hit new reaction highs. The first chart shows the NYSE AD Line moving above its August highs with a sharp advance this month. The AD Line is a cumulative measure of Net... READ MORE
The Rydex Mutual Funds Market Carpet focuses on the 17 sector funds. September is all about hard assets. The leading sector funds are precious metals, energy services, basic materials and energy. Consumer produces, utilities and healthcare show the smallest gains. Click this chart for details.... READ MORE
-Evidence Remains Bullish For Stocks -Wave 4 is Still Possible (me thinks) -Current Uptrend is Still Actual (me knows) -Net New Highs Expand Further -Tech Sector0 Shows Relative Weakness -AD Lines and AD Volume Lines Hit New Highs -Volatility Indices Hit New Reaction Lows -Stocks: XOM, APOL, AZO -Video Link... READ MORE
While the stock market moved higher the last two weeks, Lowe's (LOW) failed to break above resistance at 22 and showed relative weakness. A potentially bullish ascending triangle is taking shape, but a breakout is needed for confirmation. Conversely, a break below this week's low would... READ MORE
A look at the Market Summary page on Wednesday, September 16th, at 11:14AM ET shows a bullish start for some key sector SPDRs. The Materials SPDR (XLB), Consumer Discretionary SPDR (XLY), Energy SPDR (XLE) and Financials SPDR (XLF) are all up over 1% in early trading. At the top... READ MORE
The iShares Telecom ETF (IYZ) is challenging neckline resistance of an inverse head-and-shoulders pattern. The head-and-shoulders represents a big consolidation and the break to new highs is positive. However, declining volume on the Aug-Sep advance is a concern. Click this chart for details.... READ MORE
-SPY Zigzags After July Surge -SPY Stochastic is Short-term Overbought -Stocks and Dollar Do Inverse Dance -Oil Fails to Capitalize on Dollar Weakness -XLE and OIH Hit Resistance Zones -XOM Forms Triangle with Relative Weakness -Falling Agriculture Prices Could Affect ADM -Stocks: BG, GENZ, IMN, LMT and MOS -Click here... READ MORE
The Point&Figure chart for the Gold ETF (GLD) is bullish with an upside target at 105. PnF Charts at Stockcharts.com show bullish or bearish price objectives above the chart on the left. GLD broke above its prior highs and clearly shows strength. Click this chart for details.... READ MORE
The British Pound ETF (FXB) came across the Commodity Channel Index scan as the indicator surged above 100. While some may consider CCI overbought when above 100, it is also a show of strength when CCI moved from -100 to +100 in less than two weeks. Click this chart for... READ MORE
-Evidence Remains Bullish For Stocks -Weak Dollar Helps Stocks and Commodities -Major index ETFs Hit New Reaction Highs -Breadth Remains Bullish Overall -Small-caps Leading Large-caps -Nasdaq Lagging NY Composite -Stocks: ACS, ADSK, APD, ATVI, DVN, HRB, RTN, S, VZ -Link to today's video (click here) -Next update: September... READ MORE
The Energy SPDR (XLE) broke above wedge resistance with a big gap on Tuesday, but formed a shooting star candlestick on the day. Notice the spike and failure to hold above 54 intraday. Resistance in the 53-55 area is also confirmed by a bearish engulfing in late August. Click this... READ MORE
Net New Highs for both the Nasdaq and the NYSE remain positive. Net New Highs equals new 52-week highs less new 52-week lows. The last dip into negative territory occurred in early July. With Tuesday's surge, Net New Highs on the NYSE hit +151 and Net New Highs... READ MORE
After a big advance from March to June, the Market Vectors Steel ETF (SLX) formed a classic cup-with-handle pattern. This is a bullish continuation pattern that would be confirmed with a break above rim resistance. Conversely, a break below the August lows would call for a reassessment. Click this chart... READ MORE
-Market Overview -RSI Holds for QQQQ -August Lows Mark Key Support -Defensive Sectors and Technology Lagging -XLB and XLY Hold Breakouts -OIH forms Falling Flag -KRE Hits Key Retracement -IYT and IYR Bounce off August Lows -Stocks: AA, DRI, DRYS, EXPD, RIG, SLE, XTO -Link to today's video.... READ MORE
Intermarket analysis shows strength in bonds and gold, but weakness in the Dollar and oil. Strange days indeed. The Intermarket Perfchart below shows performance over the last sixty days, from June 11th to September 3rd. Relative strength in bonds is the first thing that jumps out. Performance for the 20+... READ MORE
Lumber Continuous Futures ($LUMBER) did not have a good August. Lumber formed a lower high in early August and moved lower throughout the month. As a key component in housing, lumber should be watched for clues on the homebuilders and the economy. Other futures contracts available at Stockcharts.com include... READ MORE
-SPY Nears Long-term Retracement -Current Advance Looks Like Wave 4 -Momentum Wanes on Daily SPY Chart -Net New Highs Form Negative Divergence -AD Lines and AD Volume Lines Remain Bullish -McClellan Oscillator Turn Bearish -Volatility Indices Break Resistance -Link to today's video -Next update: September 8th (Tuesday) around... READ MORE
After breaking above resistance in July, the Materials SPDR (XLB) moved into a holding pattern as broken resistance turned into support. Notice how the ETF bounced off 28.5 in mid August and is testing this level again in early September. A move below support would show weakness. Click this... READ MORE
Stockcharts.com provides a number of pre-defined scans using classic indicators. In particular, I always keep an eye on the Bollinger Band scan that shows stocks moving above their upper band and stocks moving below their lower band. Selling pressure is picking up as many more stocks moved below their... READ MORE
A look at the Market Carpet on Tuesday (11AM ET) shows the finance sector with the most red. In addition, four of the top five losers in the S&P 500 come from the finance sector. Notice the numbered red squares (2-5). Technology is holding up the best with... READ MORE
-Back in the Saddle -RSI Negative Divergence for SPY -China Could Foreshadow Market Top -Nasdaq Lagging NY Composite -Interest Rates Continue to Fall -Dollar Remains in Quiet Downtrend -Gold Stalls Around 950 -Video Includes some Stock Setups -Link to today's video The next update will be September 4th... READ MORE
While the S&P 500 sports a small gain for the month of August, the Hong Kong Hang Seng Index ($HSI) is actually down and lagging. The S&P 500 (black) moved above its early August high last week, but the Hang Seng Index (red) formed a lower... READ MORE
Nokia is a $49 billion company that trades on the NYSE - as an ADS (American Depository Shares). Nokia also happens to trade on the Nasdaq OMX Helsinki. Yes, Nasdaq bought the Helsinki exchange. Anyhow, this means Nokia starts trading long before the NYSE opens. Because prices have already moved... READ MORE
Candlesticks are more powerful when combined with other aspects of technical analysis. Noble Energy (NE) gapped down and formed a hammer in early July. Over the next two days, a piercing pattern formed to further affirm support around 28. The catalyst came when the stock surged above 29 with good... READ MORE
There are bullish engulfing patterns and then there are BULLISH ENGULFING patterns. Kohls (KSS) successfully tested support from its May lows with a bullish engulfing on high volume. Three items came together for this bullish signal: support, a bullish candlestick reversal and high upside volume. The more, the merrier. Note:... READ MORE
The bearish engulfing pattern is a short-term candlestick reversal, but it can also mark future resistance. Jabil Circuit (JBL) formed a bearish engulfing in early May and this area marked resistance a month later. The stock formed a rising wedge that peaked just below the early May high and then... READ MORE
Volatility contractions often precede volatility expansions. This is the rational behind Bollinger Bands. After surging above 5.5, Ford (F) formed a long consolidation and Bollinger Bands contracted as the range narrowed. The subsequent move above resistance and the upper Bollinger Band triggered the volatility expansion (breakout). Note: This is... READ MORE
The price relative can be used to show relative strength or relative weakness. While the S&P 500 moved to new lows in March, Broadcom (BRCM) held support around 16 from mid January to early March. As a result of relative strength, the price relative (BRCM:$SPX ratio) surged... READ MORE
Positive divergences in MACD show waning downside momentum that can lead to a breakout. DR Horton (DHI) forged a lower low in early July, but MACD held above its June low for a positive divergence. Despite a lower low in the stock, downside momentum was fading. MACD's subsequent... READ MORE
The volume-by-price bars for Bank of America were the longest between 11 and 13. Even though the red and green portions were relatively equal, it is clear that many positions were established in this range. Remember, there is a buyer for every seller. With so much volume, the 11-13 area... READ MORE
Momentum indicators like RSI can be used to define periods when there isn't much momentum, such as a consolidation. Applied Materials (AMAT) was largely range bound from mid May to mid July (yellow area). So was RSI. The breakout in the stock corresponded with a range breakout in... READ MORE