After surging on good volume, FedEx (FDX) hit channel resistance around 57. Notice that FDX peaked in early May and then worked its way lower the last eight weeks. This series of lower lows and lower highs defines the channel, which is also an 8-week downtrend. Look for a breakout... READ MORE
The DJIA Bullish Percent Index ($BPINDU) moved above 70% in June and remains at lofty levels. Mid December and early January were the last two occasions above 70%. Currently, 73% of the Dow stocks (30) are on Point & Figure buy signals. Even though this is technically bullish, an advance... READ MORE
Charts featured: SPY, DIA, GRMN, HOG, PFCB, FITB, HCBK, JPM, LAZ, MMC, USB, WFC, AMAT, NVDA, TIBX. - Click here for today's video. - Next update will be Tuesday (June 30) by 9AM ET. ***************************************************************** Trading remains tricky as we approach the end of the second quarter. There is... READ MORE
While the S&P 500 took a hit in June, Hewlett-Packard (HPQ) managed to hold its breakout and stay relatively strong. HP broke triangle resistance in early June. Broken resistance then turned into support the last three weeks. Also notice that the price relative moved higher throughout June.... READ MORE
A static shot of the dynamic yield curve reveals a curve steep enough to temp a skateboarder. As this curve shows, interest rates start low at the short end and rise as the maturities lengthen. Typically, a steep yield curve reflects loose monetary policy designed to stimulate the economy and... READ MORE
The Dow Industrials is testing support around 8200. A key tenet of technical analysis is that broken resistance turns into support. After breaking 8200 in early May and this level turned into support twice in May. With a sharp decline in June, the Dow is once again poised for a... READ MORE
- Index ETF Charts: SPY, $RUT, $OEX, $NAHL -Stock Charts: WHR, XHB, DHI, CAKE, KR, SLE, WMT, FLO, INTC, KLAC, INTC -Today's video will be posted by 10:15 AM ET - The next update will be Friday (June 26) by 9AM ET. ***************************************************************** The major index ETFs broke... READ MORE
UPS is a key part of the Dow Transports and perhaps a leading indicator for the stock market. Notice how the price relative (UPS:$SPX ratio) bottomed ahead of the stock market in March. UPS started showing relative strength before the actual market bottom. Most recently, the price relative peaked... READ MORE
A downtrend in the S&P 500 Volatility Index ($VIX) underpins the current rally in the S&P 500. After all, decreasing fear gives way to confidence. The chart below shows the VIX as a 3-day SMA to smooth out daily fluctuations. The VIX broke support on 12... READ MORE
After surging in March-April, SW Airlines (LUV) went into corrective mode with a falling wedge in May-June. This wedge is still falling, but volume on up days is starting to increase. The bounce in early June occurred on above average volume and Wednesday's volume was the third highest... READ MORE
- Charts Worth Watching: $USD, AAPL, BBBY, CHKP, CSCO, DHI, ENR, FXE, GLD, INTC, IWM, K, KFT, NVDA, PEP, QQQQ, SLE, SPY, SWK, WAG, WHR - Click here for today's video. The next update will be Tuesday (June 22) by 9AM ET. ***************************************************************** It is touch-and-go in the stock... READ MORE
The Nasdaq 100 ETF (QQQQ) formed a doji on Thursday to signal indecision at support. Doji look like plus signs because there is little change from open to close. In addition, notice that QQQQ closed in the middle of its high-low range. The candlestick looks like a small plus sign... READ MORE
The Euro ETF (FXE) and the Gold ETF (GLD) have been moving step-for-step over the last three months. In broad terms, both declined into mid April, advanced into early June and declined over the last two weeks.... READ MORE
Carnival Corp (CCL) came up on the Triple Bottom Breakdown scan. After failing to hold its May breakout (blue arrow), the stock broke support with a sharp decline in June. You can probably see some other patterns at work here as well. Think Fibonacci, wedge and broken support.... READ MORE
- Charts Worth Watching: $USD, BBY, CI, EL, GDX, GLD, IPCR, KMB, LLL, MHP, RTN, SPY, XLF , XLK, XLV, XLY - Click here for today's video. -The next update will be Friday (June 19) by 9AM ET. ***************************************************************** With a sharp decline over the last two days, the major... READ MORE
The S&P Sector PerfChart from 2-June until 11-June shows the consumer staples, healthcare and consumer discretionary sectors lagging the broader market. Each is down over 2%, while the S&P 500 is up .02% (a fraction) over this timeframe. It is a strange trio, but it is... READ MORE
- Charts Worth Watching: AEP, BDK, BMY, CNP, DIA, DKS, DUK, ENR, HD, IWM, IWM, JPM, KRE, LLY, LOW, PFE, QQQQ, RX, SO, SPY, TE, WHR, XLU, XLV, XLY - Click here for today's video - The next update will be Tuesday (June 16) by 9AM ET. ***************************************************************** The... READ MORE
June has been one choppy month, but the Nasdaq 100 ETF (QQQQ) continues to work its way higher within a rising channel. This channel features a series of higher highs and higher lows that define the 9 day uptrend.... READ MORE
The percentage of Nasdaq stocks that are trading above their 200-day moving average reached its highest level since early 2006. As the chart below shows, fewer than 10% of Nasdaq stocks were trading above their 200-day moving average in March. With the March-June rally, 60.46% of Nasdaq stocks are... READ MORE
As the price relative below shows, the S&P 500 Growth ETF (IVW) is outperforming the S&P 500 Value ETF (IVE). The price relative is simply a plot of the IVW:IVE ratio (enter IVW:IVE for the symbol). The ratio increases when IVW (numerator) rises more... READ MORE
- Charts Worth Watching: $INDU, ACN, ATHR, BDK, DHI, JPM, KRE, PKI, QQQQ, RJF, TGT, USB, XHB - Link to today's video. - The next update will be Friday (June 12) by 9AM ET. ***************************************************************** As evidenced by yesterday's last hour surge, trading remains quite tricky right... READ MORE
Even though the major stock indices were trading sharply lower on Monday afternoon, a few of the homebuilders showed nice gains. The gainers are easy to spot using the S&P Sector Carpet. As the blue arrows show, Lennar (LEN) was the second biggest gainer and DR Horton (DHI)... READ MORE
Even thought the Dow Diamonds (DIA) is overbought medium-term, the recent breakout is short-term bullish and this breakout is holding. On the daily chart, DIA broke above flag resistance with a surge on Monday. This move pushed CCI above 100 to turn momentum overbought. Even so, I would consider the... READ MORE
As its name implies, an inverse head-and-shoulders is an upside down version of the normal head-and-shoulders. Ixia (XXIA) has a one such pattern with a neckline breakout this week. Notice that upside volume started increasing as the right shoulder unfolded.... READ MORE
- Charts Worth Watching: AET, CAT, DE, DIA, EMC, IMKTA, IR, IWM, JPM, LLY, OCR, QQQQ, SNPS, SPY, TTWO, TXT, WFC, XLF, XLI - Link to today's video (click here). -The next update will be Tuesday (June 9) by 9AM ET. ***************************************************************** Even though the major index ETFs are... READ MORE
Investors are showing a clear preference for corporate bonds over treasury bonds. The chart below shows the 10-Year US Treasury Note ($UST) and the DJ Corporate Bond Index ($DJCBP) going their separate ways since March. $UST is down around 7% since mid March, but $DJCBP is up around 9%.... READ MORE
Barclays Plc (BCS) came across the island top scan from Tuesday's close. Notice how the stock gapped up, held the gap for one day with a doji and then gapped down with high volume on Tuesday. The doji represents an island where buyers are now trapped with a... READ MORE
Even though stocks have been rising since early March, the cumulative Net New Highs indicator has been flat since early March. This shows a virtual stalemate between new 52-week highs and new 52-week lows. Obviously, the market can rally with a stalemate. Trouble could start if this indicator moves lower... READ MORE
- Charts Worth Watching:aa, aci, atmi, csco, DIA, fic, intc, IWM, jpm, ma, plcm, pmtc, QQQQ, shlm, smh, SPY, v, xlb, xlf - Link to today's video (click here). - The next update will be Friday (June 5) around 9 AM ET. ***************************************************************** After pointing out bullish consolidations... READ MORE
The Amex Airline Index ($XAL) surged around 5% with a big move off support on Monday. Notice how broken resistance around 16 turned into support in late April and again in May. Today's bounce reinforces support and makes XAL one of the industry group leaders on Monday.... READ MORE
The Euro ETF (FXE) has been red hot with a move from around 125 in early March to 141 in late May. Interestingly, the rise in the Euro coincides with a rise in stock over this same period. FXE is fast approaching a resistance zone around 142.5-145. This zone... READ MORE
With a huge rally from early March to late May, the S&P 500 ETF (SPY) is trading just above its 40-week moving average and a key momentum oscillator is overbought. The 40-week moving average is the weekly equivalent to the 200-day moving average (40 weeks x 5 days... READ MORE
Charts Worth Watching: amat, amln, apa, genz, hal, IWM, lltc, nvls, oih, QQQQ, slb, smh, SPY I am on the road and today's commentary is abbreviated. There is no video. Normal commentary and video will resume next Tuesday. The next update will be Tuesday (June 2nd) by 9AM... READ MORE
While the US Oil Fund ETF (USO) bottomed in February, the US Natural Gas Fund ETF (UNG) continued lower and recorded a new low in late April. There was a big surge in early May and then a deep pullback the last two weeks. Notice that this pullback ended abruptly... READ MORE
While the western stock markets have clawed their way back towards positive territory the last few months, the Hang Seng ($HIS) turned year-to-date positive in early April and now sports a 24.31% gain. Among the six world indices shown, the Nikkei 225 is a distant second with a 6.... READ MORE
The Nasdaq extended its battle with the 200-day moving average by jumping back above with a big advance on Tuesday. With this latest move, the index has now crossed the 200-day at least five times this month. Notice that today's surge occurred on the second lowest volume of... READ MORE
Charts Worth Watching: SPY, DIA, IWM, XLB, XRT AND IYT. Another update will be posted by 12PM ETon Tuesday (26-May). This will include the stock setups and the video. ***************************************************************** The major index ETFs are showing signs of weakness as a potential correction unfolds. These ETFs include the Dow Diamonds (DIA)... READ MORE
Charts: BA, DELL, HD, HON, INTC, K , KFT, LMT, LOW The next update will be Friday (May 29) by 9AM ET. Link to corresponding video. ***************************************************************** Weakness in Home Depot (HD) is negative overall. HD was hit hard with two sharp declines in May. The one-day wonder surge above 26 divides... READ MORE
- Charts Worth Watching:acv, amgn, amln , asei, bro, cah, cb, eric, hon, idcc, nke, swy, trv, vrtx - Link to corresponding video. The next update will be Tuesday (May 26) by 11AM ET. **************************************************************** I will start off today with two potentially bullish setups from the consumer staples sector. This... READ MORE
With the March-May advance, QQQQ has now retraced 38.2% of the May-November decline. Where does this number come from? It based on the Golden Ratio Congugate (.618). 1 - .618 = .382 or 38.2%. After a decline, like May to November, the Fibonacci Retracements Tool can be used to... READ MORE