Even though the Nasdaq is trading above its mid May levels, the Nasdaq Summation Index (green line) is trending lower. This breadth indicator suggests that a "stealth" correction is underway within the Nasdaq. In other words, stocks within the index are showing some weakness, but the index itself... READ MORE
The chart below shows Alcoa (AA) with black candlesticks and the continuous futures contract for Aluminum ($ALUM). Although not perfect, there is clearly a positive correlation between the two. Overall, both have been working their way higher since March. More recently, both peaked in early June and moved lower the... READ MORE
- Charts Worth Watching: AMAT, BMY, BRK.A, CB, HOG, NBR, NSM, PII, PTEN - Link to today's video. - The next update will be Friday (July 17) by 7AM ET. ***************************************************************** Applied Materials (AMAT) broke trendline resistance with good volume. ***************************************************************** Bristol Meyers (BMY) firms near key retracement. Volume... READ MORE
- Market Overview: SPY, GS, XLF, KRE, VIX, VXN, $NYA200R, $NAA200R - Link to today's video. A stock setups commentary and video will be posted around 9AM. The next update will be Friday (July 17) by 9AM ET. ***************************************************************** As most of us know, an upgrade of Goldman Sach... READ MORE
A look at the market carpet for Monday reveals strength in the finance sector. All sectors are up today, but the finance sector shows the most, and the darkest, green on the carpet. From the table on the right, you can also see that four of the five biggest gainers... READ MORE
With another down day on Thursday, the Nikkei 225 ($NIKK) has now declined seven days in a row. Even though it is getting short-term oversold, it looks like a medium-term downtrend is taking shape. The index could eventually retraced 50% of the March-June advance.... READ MORE
Charts Worth Watching: AAPL, AMAT, AMZN, ARO, BMS, BMY, CAKE, CHRW, FDX, GR, IWM, JBL, JCP, LLY, NKE, OMC, PFE, PRSP, QQQQ, SPY, WPO - Link to today's video. - Next update will be Tuesday (July 14) by 9AM ET. ***************************************************************** After a gap down and sharp decline last... READ MORE
June witnessed a change in inter-market dynamics. The US Dollar Index ($USD) bounced at the beginning of June while the Gold-Continuous Futures ($GOLD) and West Texas Intermediate ($WTIC) declined in June. Gold started down first with a move lower in early June. Oil followed by moving lower the second week... READ MORE
After forming a lower high last week, the Dow Transports declined to triangle support with a sharp move lower the last three days. As of 3PM ET on Tuesday, the Average was down over 8% from last week's high. A triangle break would be bearish and call for... READ MORE
- Charts Worth Watching: AMAT, APH, ARO, BWA, DIA, HCN, IWM, JWN, KSS, MCD, OLN, PSA, QQQQ, SPY - Link to today's video. - Next update will be Friday (July 10) by 9AM ET. ***************************************************************** Short-term Gaps and Support Breaks Last Tuesday I led off with the 60-minute charts... READ MORE
The Retail HOLDRS (RTH) broke below the May low with a sharp decline last week. Overall, it appears that a double top formed in May-June. The support break confirms the pattern and this ETF could retrace around 50% of its prior advance. Sharpcharts users can click this chart to see... READ MORE
Non-farm payrolls declined 467,000 for June, which was worse than expected. Stocks took the news hard with a broad based decline on Thursday. The major indices were down 2-4% on the day, while all sector ETFs were down over 2% with the Consumer Discretionary SPDR (XLY) leading the way... READ MORE
With a 3000 point surge the last few months, the S&P TSX Composite ($TSE) broke through resistance and CCI moved above +100. Both events are bullish, but the index looks vulnerable to a pullback. First, CCI moved back below +100. Second, the index is up 3000 points without... READ MORE
Gold normally moves with the Euro, but the yellow metal has not been keeping up the last few weeks. Notice how the Euro ETF (FXE) bottomed on 15-June and moved higher the last 2-3 weeks. However, the Gold ETF (GLD) did not bottom until 22-June and has yet to break... READ MORE
From John Murphy's intermarket perfchart, we can see that stocks (S&P 500) and commodities ($CRB) were down for the month of June. In contrast, Bonds ($USB) and the Dollar ($USD) were up. Strength in the greenback weighed on commodities. In addition, it appears that strength in... READ MORE
From the PnF scans comes Sherwin Williams (SHW) with a clear break below the May lows. On the PnF chart, you can see the number 5 to denote the start of May and then two reaction lows. After the number 6 (June), SHW formed another column of O's... READ MORE
- Charts featured: DHI, DIA, IBB, IWM, JAH, JPM, LUV, MMC, PENN, PNRA, QQQQ, SPY, USB, WFC, XHB, XLF, XLY - Link to today's video. - Next update will be Tuesday (July 7) by 9AM ET. ***************************************************************** As noted last week, the current trading environment remains tricky for a... READ MORE
After surging on good volume, FedEx (FDX) hit channel resistance around 57. Notice that FDX peaked in early May and then worked its way lower the last eight weeks. This series of lower lows and lower highs defines the channel, which is also an 8-week downtrend. Look for a breakout... READ MORE
The DJIA Bullish Percent Index ($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