There were eight breadth thrusts in the month of May and seven of these were bullish (>70%). In particular, there were three bullish breadth thrusts last week. These strong readings show broad participation and give the bulls the edge going forward. Chartists can measure daily breadth by using the... READ MORE
* A Bullish Breadth Thrust, but... * S&P 500 Toys with Triangle Breakout * June can be a Rough Month * Seasonality and the Turn of the Month * QQQ Holds Up better than SPY * Small-caps Hold Breakout * XLK and XLY Hold Up the S&P 500 * Mind the Gap in XLF... READ MORE
The Biotech iShares (IBB) surged off support in mid-May and then stalled the last two weeks with a bull flag taking shape. A bull flag is a short-term bullish continuation pattern. These patterns form after a sharp advance and represent a rest or consolidation. This is often needed to digest... READ MORE
* Small-caps and Large-Techs Still Leading. * IJR Holds above Breakout Zone. * QQQ Falls Back into Pennant. * Six Flags over the Nasdaq 100. * Strike One on SPY. * Selling Pressure Concentrated in Large-caps. * On Trend Highlights... The S&P 500 SPDR (SPY) broke below its mid-May lows with a sharp decline, but... READ MORE
* Is the Dollar Strong or the Euro Weak? * Yen Bounces as Euro Falls. * A Big Surge for Treasuries. * Gold is Oversold in an Uptrend. * Italy and Spain Lead Europe Lower. * Looking for International Indexes? * On Trend: Tuesdays at 10:30 AM ET. Dollar Strength or Euro Weakness? ... I am starting... READ MORE
* SPX New Highs Continue to Drag. * Triangle Breakout Holds. * Bulls and Bears Fight to Go Nowhere. * Watching the Swing within the Wedge. * IJR Holds above Breakout Zone. * QQQ and XLK Form Tight Consolidations. * XLF Stalls Near April High. * XLI Stays Strong as XLV Hits Make-or-Break Level. * Semis are Leading and... READ MORE
I highlighted a number of bull flags in Tuesday's show (On Trend), and there were some breakouts. These breakouts, however, were not very convincing because stocks closed weak and gave back their early gains. Today I will highlight the flags in JP Morgan (JPM) and Morgan Stanley (MS)... READ MORE
* The Last Thing You Expect .... * Another Ominous Wedge Takes Shape. * $SPX-$SML Correlation is High. * QQQ Shows Short-term Weakness. * Regional Banks Outperform Big Banks. * Highlights from On Trend. The Last Thing You Expect .... ... is probably what will happen. Even though I cannot quantify this expression, we have all experienced such... READ MORE
I do not often highlight stocks with bearish setups during a bull market, but Hasbro shows some serious weakness over the past year and looks poised to peak again. First and foremost, the chart shows Hasbro (HAS) hitting a 52-week low in early April and this means the long-term trend... READ MORE
Stocks recording new 52-week highs are the leaders and a key component to broad market strength. Small-caps are doing their part with plenty of new highs, but large-caps and mid-caps are lagging in this category. The S&P Small-Cap 600 moved to a new 52-week high this week and... READ MORE
* The Mother of all Double Bottoms. * The Shifting Relationship between Stocks and Bonds. * S&P SmallCap iShares Hit New High. * Small-caps Lead Breadth Indicators. * S&P 500 Pauses Near Breakout Zone. * Materials and Industrials Show Upside Leadership. * XLI and XLB Bid to End 2018 Corrections. * XLF Forms High... READ MORE
* Materials Sector Leads in May. * Metals & Mining SPDR Breaks Out of Consolidation. * Steel Dynamics, Allegheny and Reliant Lead Group. * The Long Correction in Copper. * Copper Miners ETF Challenges Resistance. * Continuous Commodity Contracts are Mixed. * Stocks to Watch: ADSK, CA, HPE, HCA. The EW Technology ETF, EW Industrials ETF and... READ MORE
The Materials SPDR (XLB) is having a good month with a 4+ percent gain so far in May. Within the sector, I am seeing some strength in two big chemical stocks, Air Products (APD) and Eastman Chemical (EMN). Before looking at the charts, note that both are above their rising... READ MORE
* Ranking Sectors by High-Low Percent. * Sector SPDR Chart Analysis (big wedges). * Oil and Energy-Related ETFs Continue to Work. * 10-yr T-Yield Turns Back Up. * Winners and Losers in Rising Rate Environment. * Stocks: TSLA, DHR, NKE, ROST, SYK, UNH. Today's c ommentary and charts show some highlights from "On... READ MORE
The healthcare sector is coming alive on Monday and leading the broader market. As with the S&P 500, this sector struggled in 2018 and the Health Care SPDR (XLV) is up around 1.5% year-to-date. SPY, for reference, is up almost 3% this year. The chart below shows... READ MORE
* Biotechs Perk Up. * Average-Cap XBI versus Large-cap IBB. * IBB Surges off Support. * XBI Holds Above Support. * Health Care SPDR Bounces off Retracement Zone. Biotechs showed some upside leadership with a big surge last week, most of which occurred on Friday. This group has been lagging the market in 2018, but... READ MORE
* Weighing the Evidence. * S&P 500 Breaks April High and Reverses Downswing. * Small-caps Lead with New High. * Small-caps are Really Really Small. * Nasdaq 100 Leads New High List. * Small-cap Sectors Lead. * Tech, Finance and Industrials Dominate. * Small-cap Industrials Sector Leads. * Finance Sector Recovers. * Notes from the Art's... READ MORE
Hilton (HLT) led the market in the second half of 2017 and then took a breather in 2018. This is looking like the pause that refreshes as the stock challenges resistance. First and foremost - you know the drill - the long-term trend is up and this means I am... READ MORE
* Banks Lead on Multiple Timeframes. * Regional Bank SPDR Extends Upturn. * Big Banks are Mixed. * Wedge Corrections for JPM and MS. * Small-caps Get Dollar Tailwind. * Energy ETFs Break Out of Consolidations. * Bond Market Breakdown Holds. * Utilities Look Poised to Continue Downtrend. Banks Lead on Multiple Timeframes... The PerfChart below shows the... READ MORE
The discount brokers are showing strength in the broader market with E-Trade Financial (ETFC) and Interactive Brokers (IBKR) hitting new highs in May. Schwab (SCHW) is breaking out of a small triangle, while TD Ameritrade is bouncing within a bigger triangle. A picture is worth a thousand words and the... READ MORE
* One-Day Breadth Thrust. * SOXX Surges off Support. * Four Semiconductor Stocks to Watch. * A Bollinger Band Squeeze for Akamai. * Five Stocks to Watch: ABT, ACN, ANTM, HCA, SLB. One-Day Breadth Thrust... As noted last Thursday, I was not impressed with the breadth indicators because they showed narrow upside participation. This changed... READ MORE
2018 has been a tough year for stocks with the S&P 500 SPDR (SPY) basically unchanged (+.08%) for the year. During this journey to unchanged, SPY was up around 7% at its late January high and down around 5% at its February low. The index has since gyrated... READ MORE
* S&P 500 Caught in the Crossfire. * SPY Reverses Upswing. * Large-cap Tech Holds up Well. * A Bull Flag in the S&P SmallCap iShares. * Finance and Industrials Weigh. * Healthcare Breakdown Tilts the Balance. * Mind the Gap in Tech-Related ETFs. * Oil Forms Bull Flag. * Gold Forges Lower Low and... READ MORE
* Breadth Falls Short. * Chart Links and Video. * Looking for a Breadth Thrust. * Still a Correction? * %Above 200-day Indicator Waffles. * The Weight of the Evidence. * Where to Find the Symbols. Breadth Falls Short Enthusiasm among the bulls is waning and this is reflected in the breadth stats over the last two... READ MORE
It has been a rough year for Alphabet, also known as Google, but the stock is still in a long-term uptrend and firming near a solid support zone. This could give way to a bounce. First, the stock advanced some 30% and hit a 52-week high in January. Second, the... READ MORE
Visa (V) is leading the stock market as it breaks out of a triangle and records a fresh new high. The stock is now setting its sights on its big rival, Mastercard. The chart below shows Visa in the top window with a steady advance from May to January and... READ MORE
* Throwbacks after Breakouts. * Triangles within Bigger Uptrends. * Stock with Fresh Breakouts. * Corrections within Uptrends. * Two Dozen Strong Uptrends. As noted in Friday's commentary, the performance of stocks in the S&P 500 is split and it a stock picker's market. I am even seeing divisions... READ MORE
* Small-caps Continue to Lead. * IJR Remains with Bullish Continuation Pattern. * Large-cap Techs are Lagging, but Trending Up. * A Divided Market. * The S&P 500 is Stuck in the Middle. * %Above 50-day EMA Struggling. * Countering the Downward Breadth Thrusts. * Healthcare Perks Up. * Biotech ETFs Get Oversold Bounces. * Notes from the... READ MORE
* SPY Tests Upswing Support. * Finance Sector Holds Up Best. * Two Down and Three to Go. * KRE Still Looking Positive. * Bullish Continuation Patterns in Energy-Related ETFs. * A Few Telcos Come Alive. * Four Stocks to Watch. SPY Tests Upswing Support... I marked upswing support for the S&P 500 SPDR (SPY)... READ MORE
The Nasdaq 100 ETF (QQQ) broke down with a sharp decline the last five days and this pushed RSI(5) below 30 for a short-term oversold reading. The breakdown is bearish, but it has also created a short-term mean-reversion opportunity. I first introduced a mean-reversion trading system using RSI in... READ MORE
* SPY Pulls Back within Channel. * Monitoring Upswings in the Big Sectors. * Regional Bank ETF Extends Short-term Bounce. * Smelly SOXX. * Google Holds the Gap. * Nike Forms Flag within Triangle. SPY Pulls Back within Channel... There are three stages to a trend reversal. First, there is the bottom picking stage when momentum... READ MORE
Costco (COST) is showing some upside leadership this year with a triangle breakout and challenge to the January high. Long-term trend identification is important because it sets my bias going forward. My bias is bullish when the long-term trend is up and this means I favor bullish patterns over bearish... READ MORE
The Percentage Price Oscillator (PPO) is mostly used as a momentum oscillator, but chartists can also use it to define the trend, even the long-term trend. Chartists interested in trend signals can simply ignore the wiggles and the signal line, and instead focus on zero line crossovers. As noted in... READ MORE
* A Narrowing Range for the S&P 500. * Monitoring the Upswing in SPY. * Raff Regression Channel Explained. * QQQ Weathers Semiconductor Weakness. * IJR Challenges Rim Resistance. * Big Wedge and Little Wedge in XLF. * XLY, XLK and XLI Lead the Big Sectors. * SOXX Fails to Hold Breakout. * Notes from the Art&... READ MORE
* IJR Moves above Chandelier Exit. * Finance Sector Underperforms. * Regional Bank SPDR Forms Bear Flag. * 10-yr Yield Breaks out of Flag. * Yield Curve Sinks to Multi-year Lows. * Bond Bounce May be Ending. * Commodities are on the Move. * Copper Bounces off Support (plus COPX). * Gold Forms Bullish Cup-with-Handle. The S&P... READ MORE
Industrial metals surged on Wednesday with 2+ percent gains coming in silver, aluminum, palladium, copper and nickel. The Silver ETF (SLV), in particular, finally broke out of a two-month consolidation. The chart below shows the Silver ETF (SLV) with Bollinger Bands in pink and BandWidth in the indicator window. Overall,... READ MORE
* Small-caps Rise as Large-caps Grind. * Cup-with-handle Evolves in IJR. * Three Leading Small-Cap Sectors. * XRT Holds Breakout. * Providers and Devices Lead Healthcare. * ITA Edges Above Short-term Resistance. * Delta and Micron Correct within Uptrends. Small-caps Rise as Large-caps Grind... After a fairly dismal March, stocks moved higher this month with small-caps leading... READ MORE
Analog Devices (ADI) is a large semiconductor stock and a leader in the internet of things (IoT). The stock is in a long-term uptrend and recently broke short-term resistance to reverse a short-term pullback. First and foremost, the long-term trend is up. The stock hit a 52-week high in January,... READ MORE
* Three Strikes and your Out - But Not Yet. * SPY Attempts to Reverse Downswing. * IJR Leading in April. * QQQ Springs to Life. * High-Low Lines Turn Up. * Tech-Related ETFs Break Out in Unison. * XBI, SLX and the Problem with Reversal Patterns. * Bear Market Bounce for Bonds, Utes and REITs. * Gold Stays... READ MORE
* Introduction and Overview. * How Many Crosses in the Last 25 Years? * Crunching the Numbers. * Putting the Dow Industrials to the Test. * SPY, SPX and Dividends. * Slowing Down the Trigger. * Reduce Risk and Get on the Right Side. * Summarizing the Results. * Consulting, Software and Data. The S&P 500 is... READ MORE