**This chart analysis is for educational purposes only, and should not be construed as a recommendation to buy, sell or sell-short said securities** It was a good old fashion flight to safety on Tuesday. Stocks moved broadly lower, while the safe havens moved higher. The 20+ Year T-Bond ETF (TLT)... READ MORE
Looking for pockets of strength on a down day? Turn to the Sector Market Carpet. The first image shows the broad sector view with the utilities sector in light green. The other sectors are either red or a lighter shade of red, which means they are down. The second image... READ MORE
**This chart analysis is for educational purposes only, and should not be construed as a recommendation to buy, sell or sell-short said securities** Despite a worse-than-expected durable goods report, stocks opened firmed and advanced in early trading. The major index ETFs were in positive territory in the afternoon, but selling... READ MORE
AXP Breaks Triangle Trend Line. CRM Forms Bear Flag. Plus ENR, MDP, YUM Video at end of commentary **This chart analysis is for educational purposes only, and should not be construed as a recommendation to buy, sell or sell-short said securities** Click here for iPad/iPhone Version This commentary and... READ MORE
Chartists can get an idea of the overall market trend by comparing the number of bullish P&F signals with bearish P&F signals. StockCharts provides this data every day on the predefined scans page. Notice that there are 87 Triple Top Breakouts on the NYSE and only... READ MORE
**This chart analysis is for educational purposes only, and should not be construed as a recommendation to buy, sell or sell-short said securities** Stocks started the week under selling pressure, but finished strong with a rally on Thursday and Friday. The major index ETFs closed up for the week with... READ MORE
While the Home Construction iShares (ITB) battles broken support, Toll Brothers (TOL) is still holding support from the 2013 lows. The chart below shows TOL bouncing off support in mid August, but falling short of a breakout. The indicator window shows TOL relative to ITB using the price relative (TOL:... READ MORE
The bulk of the evidence remains bullish, but recent weakness took its toll on SPY momentum as this indicator trio turned bearish. Momentum indicators are leading indicators and will be the first to turn. However, they are also the most prone to whipsaws and bad signals. Of note, the $COMPQ:... READ MORE
**This chart analysis is for educational purposes only, and should not be construed as a recommendation to buy, sell or sell-short said securities** Stocks moved higher on Thursday with the Russell 2000 ETF (IWM) and S&P MidCap 400 SPDR (MDY) leading the way. Both gained over 1%. All... READ MORE
The US Commodity Groups PerfChart shows the performance for five commodity groups and the CRB Index ($CRB). Energy prices weighed on the CRB Index as the GSCI Energy Index fell over 1% this past month. In contrast, the GSCI Industrial Metals Index ($GYX) and the GSCI Precious Metals Index ($GPX)... READ MORE
**This chart analysis is for educational purposes only, and should not be construed as a recommendation to buy, sell or sell-short said securities** Stocks went on a wild afternoon run as the Fed minutes hit the tape. Despite a bounce attempt, the major index ETFs sold off and ultimately closed... READ MORE
BAC Channels back to Broken Resistance. BIIB Firms after Pullback. Plus DDD, IDTI, PG, UAL, UPS Video at end of commentary **This chart analysis is for educational purposes only, and should not be construed as a recommendation to buy, sell or sell-short said securities** Click here for iPad/iPhone Version... READ MORE
The chart below shows E*Trade (ETFC) with CandleVolume charts to accent volume. Upside volume has been strong in general and the stock gapped above 14 with the biggest volume since the mid March gap down. This gap zone around 14 has turned support as the stock firms just above.... READ MORE
The S&P 500 ETF (SPY) broke below its 50-day moving average on Monday, but moved right back above on Tuesday. This moving average held from December to early June. SPY broke below in late June, but quickly recovered and recaptured the moving average. It looks like another battle... READ MORE
**This chart analysis is for educational purposes only, and should not be construed as a recommendation to buy, sell or sell-short said securities** Selling pressure continued in both stocks and Treasuries on Monday. These two were negatively correlated most of the last two years, but have been positively correlated the... READ MORE
CAKE Stalls Below Prior High. HCA Extends Flag Correction. Plus HTZ, IACI, WDC Video at end of commentary **This chart analysis is for educational purposes only, and should not be construed as a recommendation to buy, sell or sell-short said securities** Click here for iPad/iPhone Version This commentary and... READ MORE
Children's Place formed a head-and-shoulders reversal pattern from late May to August and is currently testing neckline support. Notice that downside volume is outpacing upside volume and On Balance Volume (OBV) broke its June low this month. Click this image for a live chart... READ MORE
Selling pressure hit the stock market for the second week running as the major index ETFs lost ground. The Russell 2000 ETF (IWM) fell 2.27% last week, while the Nasdaq 100 ETF (QQQ) lost just 1.31%. Even though these are small losses in the grand scheme of things,... READ MORE
The Russell 2000 ETF (IWM) moved sharply lower this week to start a short-term downtrend, but this is still considered just correction within a bigger uptrend. There are simply no signs of a major top at this moment. Tops often form with major reversal patterns or consolidation, a bearish divergence... READ MORE
The image below shows the Market Carpet for just the consumer discretionary sector (cyclicals). Notice that Pulte (PHM) and Lennar (LEN) are leading on Friday, while Nordstrom (JWN) and Kohl's (KSS) are lagging. Chartists can double click on any symbol in the market carpet to expand that section... READ MORE
Stocks were hit with broad selling pressure over the past week, but this is not enough to affect the overall uptrends. As we saw in November and June, corrections are normal in uptrends. The challenge, as always, is distinguishing between a normal correction and the start of something more (extended... READ MORE
Selling pressure certainly intensified on Thursday with an across the board decline. The high-beta Russell 2000 ETF (IWM) led the major index ETFs lower with a 1.82 percent decline. All sectors were down with the Consumer Discretionary SPDR (XLY) leading the way. It is negative to see this economically... READ MORE
After weeks of indecision, the S&P 500 ETF (SPY) made a decisive move with break below the late July low. The gap and support break are short-term bearish as long as they hold. Using the Fibonacci Retracements Tools, chartists can estimate next support in the 50-62% retracement zone,... READ MORE
Stocks opened weak and remained weak, but selling pressure was not that intense as the major index ETFs closed modestly lower. The Dow SPDR (DIA) and S&P Midcap SPDR (MDY) led the way by falling around .75 percent. All sectors were lower with the Consumer Discretionary SPDR (XLY)... READ MORE
ACN Breaks Triangle Support with High Volume. AMD Bounces off Support with Good Volume. Plus DGX, KMB, TXT Video at end of commentary **This chart analysis is for educational purposes only, and should not be construed as a recommendation to buy, sell or sell-short said securities** Click here for iPad/... READ MORE
Rising rates are taking their toll on the Home Construction iShares (ITB) as the ETF broke neckline support on Wednesday. The head-and-shoulders pattern extends almost the entire year and today's breakdown confirms the bearish reversal. The indicator window shows the price relative (ITB:SPY ratio) moving to a... READ MORE
Stocks meandered on Tuesday with the major index ETFs finishing mixed on the day. The Nasdaq 100 ETF (QQQ) advanced .56% on the heels of Apple, while the Russell 2000 ETF (IWM) fell .13% on the day. Treasuries were the big movers as a positive retail sales report prompted another... READ MORE
The S&P 1500 AD Line ($SUPADP), which is a key breadth indicator, has yet to break support and remains in bull mode. Notice how the AD Line established lows from mid July to early August. These lows mark a support zone that chartists should watch for clues on... READ MORE
Stocks opened weak on Monday, but quickly recovered and edged into positive territory. The overall gains were rather paltry with the Nasdaq 100 ETF (QQQ) gaining .24% and the Russell 2000 ETF (IWM) advancing .53%. The sectors were mixed with small gains and losses. The Technology SPDR (XLK) stood out... READ MORE
CY Consolidates after Big Surge. DE Bounces off Support with Good Volume. Plus FST, INTC, MXIM, SWKS Video at end of commentary **This chart analysis is for educational purposes only, and should not be construed as a recommendation to buy, sell or sell-short said securities** Click here for iPad/iPhone... READ MORE
After surging and breaking resistance in July, the US Oil Fund (USO) pulled back with a falling flag the last few weeks. USO made its first move with a surge over the last two days. A follow through breakout above flag resistance would signal a continuation higher. Chartists can also... READ MORE
The Shanghai Composite ($SSEC) and the Hang Seng Index ($HSI) surged over 2% on Monday, but the Nikkei 225 ($NIKK) fell and US stock futures are trading lower. Chinese shares are up because there were some positive economic reports late last week. Gold is also up and going for a... READ MORE
The Finance SPDR (XLF) was one of the best performing sectors from April to late July, but was the weakest sector over the last two weeks. The PerfChart below shows XLF with a loss over the last ten trading days. In contrast, notice that the S&P 500, Consumer... READ MORE
Stocks stalled over the last two weeks, but this was not enough to derail any indicators or the overall uptrend in the major index ETFs. Note that the major index ETFs hit new highs over the last two weeks, while XLK, XLY and XLI hit new highs to lead the... READ MORE
Stocks were all over the place on Thursday. The major index ETFs opened higher, quickly pulled back and then moved back into positive territory in the afternoon. The end result was uneventful as the Russell 2000 ETF (IWM) and Nasdaq 100 ETF (QQQ) advanced around 1/2 percent. A gain,... READ MORE
Even though the long-term trend remains down, the Steel ETF (SLX) is making some bullish waves with a flag breakout on Thursday. After an advance from late June to mid July, SLX consolidated with a falling flag, which is a bullish continuation pattern. Today's breakout signals a continuation... READ MORE
Stocks opened weak, but quickly firmed and consolidated at lower levels the rest of the day. The overall losses were small with the Russell 2000 ETF (IWM) loosing .71% and the Nasdaq 100 ETF (QQQ) falling just .18%. QQQ continues to lead the major index ETFs and show the most... READ MORE
AEP Firms at Broken Resistance. AMX Surges to Consolidation Highs. Plus HD, INTU, SO, TE Video at end of commentary **This chart analysis is for educational purposes only, and should not be construed as a recommendation to buy, sell or sell-short said securities** Click here for iPad/iPhone Version This... READ MORE
Chuy's Holdings came across the intraday bearish engulfing scan on Wednesday. Even though the trading day has just begun, notice that the stock broke down in July and retraced 62% with a bounce back to 40 in August. The gap and 62% retracement mark resistance as the stock... READ MORE
**This chart analysis is for educational purposes only, and should not be construed as a recommendation to buy, sell or sell-short said securities** Stocks pulled back on Tuesday with the Home Construction iShares (ITB), Gold Miners ETF (GDX) and Biotech SPDR (XBI) leading the way lower. ITB is on the... READ MORE