Today's charts feature five setups from across the board. A key industrial metal retraced 50-62% of its prior advance and may hit resistance soon. A game retailer with high short interest gapped up. An oil services company shows signs of firming in a key retracement zone. Oil hit... READ MORE
Note that I will be taking a day off on Friday and Art's charts will not be updated until Monday. Stocks took a breather on Wednesday with small losses in the major index ETFs. The Russell 2000 ETF and Russell MicroCap iShares suffered the biggest losses, but the... READ MORE
The chart below shows year-to-date relative performance for four sector SPDRs (XLK, XLF, XLI and XLY). Notice that the XLK:SPY ratio shot up over the last two weeks and moved to its highest level of the year (above the February peak). In fact, the XLK:SPY ratio is the... READ MORE
Stocks were higher again on Tuesday with small-caps leading the way. The Russell 2000 ETF and Russell MicroCap iShares gained 1.44% and 1.92%, respectively. Strength in small-caps triggered a breakout in IWM as it moved above its mid May high. The Finance SPDR and Technology SPDR led the... READ MORE
Intel (INTC) is leading the semiconductor group higher with a move above its upper Bollinger Band. Notice how the bands contracted as volatility narrowed over the last few weeks. The breakout signals what could be the start of a volatility expansion and continuation higher. Chartists can use the recent lows... READ MORE
Today's charts feature five setups in various groups. We start with a semiconductor stock making a breakout on high volume. Next, there are two retailers with bullish continuation patterns forming. Both broke out with gaps and are now consolidating. Fourth, we have another semiconductor stock bouncing off support... READ MORE
Last week was a pretty good week for stocks. First, small-caps led the market as the Russell 2000 ETF gained over 2%. Second, the Consumer Discretionary SPDR led the sectors higher with a 2.09% gain. Third, Treasuries actually fell as the 20+ YR T-Bond ETF lost .74% last week.... READ MORE
The Global Uranium ETF (URA) has had a tough eleven weeks with a decline from 19 to 14, but support may be at hand. The October-November lows marked support in the 14 area and the ETF firmed here with an inside week last week. Also notice that CCI is oversold.... READ MORE
Stocks moved higher on Thursday with another lopsided advance. The Russell 2000 ETF gained around 1%, but the S&P 500 SPDR gained just .30%. Small-caps led and large-caps lagged. Eight of the nine sectors were higher with the consumer discretionary and finance sectors leading. Homebuilders contributed to relative... READ MORE
Today's charts feature five setups in various groups. We start with an internet stock that is firming in a gap zone and retracement area. There is a clothing retailer with a bearish wedge. Next up is a hospital stock that appears to be healing with a gap and... READ MORE
Stocks rebounded on Wednesday with large-caps leading the way. The Dow Diamonds (DIA) and S&P 100 ETF (OEF) rose around 1%. All sectors were up with consumer discretionary and industrials leading. Note, however, that the Retail SPDR (XRT) and the Home Construction iShares (ITB) did not lead the... READ MORE
After stalling in March and April, the Metals & Miners SPDR (XME) turned lower in May and broke a key support zone. Notice how XME held the 41 area for two months and then broke this zone twice in May. The indicator window shows the price relative (XME:SPY ratio)... READ MORE
Stocks came under selling pressure with retailers leading the way lower. The Russell 2000 ETF and Russell MicroCap iShares lost around 1.5% on Tuesday. The S&P 500 SPDR and Nasdaq 100 ETF led up relatively well with losses of .63% and .36%, respectively. Yes, the song remains... READ MORE
Today's charts feature five setups in various groups. A little chip maker found support near its prior gap with a breakout the last two days. An offshore driller shows signs of buying pressure after a breakout. An auto maker bounces off support. An industrial supply stock firms near... READ MORE
Stocks rallied on Monday with techs and small-caps leading the way. The Russell 2000 ETF gained over 1% and the Nasdaq 100 Equal-Weight ETF advanced .85% on the day. Seven of the nine sector SPDRs were higher with technology, finance and consumer discretionary leading. Their gains, however, were quite modest... READ MORE
Stocks remain mixed overall, but selling pressure is quietly spreading. The S&P 500 SPDR and Nasdaq 100 ETF continue to hold up well, but the Russell 2000 ETF and small-caps remain relatively weak. The market as a whole remains vulnerable as long as small-caps under perform. Note that... READ MORE
As noted in ChartWatchers two weeks ago, rising wedges are appearing on some key charts and chartists should watch these closely for directional clues. Even though the rising wedge can be a bearish continuation pattern, keep in mind that the immediate trend is up as long as the wedge rises.... READ MORE
Stocks took it on the chin Thursday with the major index ETFs falling across the board. Reading the financial media, one would have expected 2+ percent declines and blood in the street. The losses, however, where relatively modest and the Russell 2000 did not lead the way lower. The Dow... READ MORE
Pimco's Bill Gross called his new secular investment theme "the new neutral". Gross expects slow economic growth and low real interest rates over the next five years, and this will fuel the hunt for yield. We can already see the hunt for yield playing out in... READ MORE
Small-caps once again led the market lower with the Russell 2000 ETF and Russell MicroCap iShares losing over 1.5% on the day. The Dow Diamonds and S&P 500 SPDR held up relatively well and lost around .5% on Wednesday. The offensive sectors led lower with the consumer... READ MORE
Today's charts feature five setups in various groups. Facebook, the king of social networking, has a big reversal pattern taking shape. Flir Systems fell sharply and then formed a bearish continuation pattern. SCP Pool is suffering long with housing stocks and formed rising flag the last few weeks.... READ MORE
Stocks were mixed on Tuesday with the Russell 2000 ETF (IWM) falling around 1% and the S&P 500 SPDR (SPY) advancing .1% on the day. Eight of the nine sector SPDRs were up, and just one down. The gains were small with the Energy SPDR (XLE) leading the... READ MORE
Stocks surged with a broad-based rally led by small-caps. The Russell 2000 ETF and the Russell MicroCap iShares gained over 2%, while the Dow Diamonds and S&P 500 SPDR gained less than 1%. It was a lopsided rally, but a little relative strength in small-caps is positive overall.... READ MORE
Today's charts feature five setups in various groups. Air Gas recovered from a support break and broke flag resistance. BB&T, a regional bank, held above its February low and bounced on good volume the last two days. Immersion continues to toy with support as it gapped... READ MORE
Bed Bath & Beyond (BBBY), which is part of the important retail group, is showing strength with a gap and surge. Notice that this gap-surge came after the stock formed a doji and then a bullish engulfing. The doji signals indecision and the bullish engulfing is a bullish candlestick reversal... READ MORE
Not much happened in the stock market last week. The Dow Diamonds advanced .59%, the Nasdaq 100 ETF fell .79%, the S&P 500 SPDR decline just .05% and the Russell 2000 ETF lost 1.79%. The nine sector SPDRs were split with four up and five down. The... READ MORE
Symantec is popping after reporting earnings on Thursday. The chart below shows the stock with a selling climax in mid March, a recovery into early April and a consolidation the last few weeks. With today's gap, the stock is on the verge of a consolidation breakout. The left... READ MORE
The bulls tried to rally the market in early trading, but the early gains failed to hold as stocks moved lower in the afternoon. Once again, the Russell 2000 ETF and Russell MicroCap iShares led the way lower. The Nasdaq 100 ETF, Dow Diamonds and S&P 500 SPDR... READ MORE
Small-caps are underperforming large-caps and microcaps are underperforming small-caps. Microcaps are similar to the momentum names in that they represent the high beta end of the stock market. The chart below shows the Russell MicroCap iShares (IWC) breaking below its February low with a 14% decline. The indicator window shows... READ MORE
Stocks opened weak, firmed and rallied into the close. The major index ETFs finished with modest gains, but the Nasdaq 100 ETF closed slightly lower. The Finance SPDR and Utilities SPDR led the sectors higher. The Consumer Discretionary SPDR fell as the Retail SPDR declined around 1%. Weakness in retail... READ MORE
Today charts feature three stocks from the finance sector, two from the tech sector and a biotech. Buying pressure is showing up in American Express over the last three days. Regional banks PBCT and RF are firming at key retracement. Microsoft formed a bullish candlestick in a support zone. Target... READ MORE
For the first time in over a year, the Russell 2000 closed below its 200-day moving average. This may seem like a long-term sell signal, but it really depends on the bigger trend. Notice how one would have been better off buying on breaks below the 200-day in 2004, 2005... READ MORE
After opening weak and recovering on Monday, stocks opened slightly lower and declined on Tuesday. I consider a weak open and steady decline more negative because it suggests consistent selling pressure. The Russell 2000 ETF (IWM) and Russell MicroCap iShares (IWC) led the market lower. Relative weakness in small and... READ MORE
The major index ETFs opened weak, but firmed in the first thirty minutes and bounced to close virtually unchanged. The overall results were mixed with the Nasdaq 100 ETF advancing .53% on the day and the Russell 2000 ETF (IWM) closing .12% lower. Despite mixed results at the end, it... READ MORE
AYI Tests Support Zone. BMY Bounces off Big Support. FLEX Forms Big Bull Flag. UNH Firms with Large Spinning Top. USB Finds Support near Key Retracement. Video is not available at the moment because we moved to a new blogging platform over the last few days. We are working on... READ MORE
Nothing much changed last week. SPY broke flag resistance and continued to lead the major index ETFs. IWM remains in a downtrend and formed a rising wedge, which could be a bearish continuation pattern. The markets shrugged off good economic news and closed weak on Friday. Perhaps Ukraine fears kept... READ MORE
The Technology SPDR (XLK) and the Finance SPDR (XLF) remain in uptrends overall, but Friday's intraday reversal could signal a near term peak and result in a bearish wedge. The first chart shows XLK hitting a new high in early April and then declining below 35.25 with... READ MORE
There is no change on the charts as the current patterns held up. SPY and QQQ have flag breakouts, while IWM is bouncing within a downtrend. IWM could be forming a bear flag/wedge over the last few days. Treasuries surged this week as the 10-YR Treasury Yield ($TNX) fell... READ MORE
The Consumer Discretionary SPDR (XLY) was leading the sectors at midday on Thursday. Trading in general was rather lackluster, but it is still positive to see some leadership from this economically sensitive sector. The Market Carpet below shows Netflix (NFLX), DirecTV (DTV), Abercrombie (ANF), TripAdvisor (TRIP) and Expedia (EXPE) leading... READ MORE
ADSK Corrects after Strong Advance DDD Firms at long-term Support ISIL Breaks Out after Earnings ITRI Tests Island Reversal Zone PVH Breaks Flag Resistance Video is not available at the moment because we moved to a new blogging platform over the last few days. We are working on the technical... READ MORE