Aaron (AAN) surged above 32 and then fell all the way back below 29. Even though this decline looks excessive, note that it retraced 62% of the prior decline and the stock firmed near broken resistance. A break above the mid November high on good volume would be bullish. Click... READ MORE
It was drop and pop last Wednesday as stocks opened weak and then rallied. Monday was different as stocks opened strong and then sold off. The S&P 500 was up just over 1/2% in early trading, but fell after the ISM Manufacturing Index was reported. ISM fell... READ MORE
ARO Forms Ascending Triangle. DE Holds Gap within Short-Term Downtrend. Plus HON, MMM, MS, X This commentary and charts-of-interest are designed to stimulate thinking. This analysis is not a recommendation to buy, sell, hold or sell short any security (stock ETF or otherwise). We all need to think for ourselves... READ MORE
After hitting big resistance in the 26 area, the Coal ETF (KOL) moved sharply lower and then formed a rising flag the last two weeks. These are bearish continuation patterns that typically form after a sharp decline. A move below flag support would signal a continuation lower. Click this image... READ MORE
Despite all this talk on the fiscal cliff, it seems that the Euro is more important to the stock market right now. On the 60-minute chart, the indicator window shows the Euro Currency Trust (FXE) bottoming on 13-Nov and the S&P 500 ETF (SPY) bottoming on 16-Nov. Both... READ MORE
The Home Construction iShares broke below support in mid November, but this break did not hold as the ETF quickly surged back above 20. A flat consolidation has since formed and traders should watch these boundaries for the next directional clue. An upside breakout signals a continuation higher, while a... READ MORE
<div style="width: 600px;">With a sharp rally the last two weeks, several indicator groups were upgraded. Namely, the NYSE AD Line surged to its October-November highs and is close to a 52-week high. The cumulative line for NYSE Net New Highs hit a new high.... READ MORE
On the 60-minute chart, SPY edged higher on Thursday and moved to the top of its resistance zone. Broken support, the early November highs and the 61.80% retracement mark resistance in the 143 area. Even though the bigger trend may be down, this short-term upswing remains in play as... READ MORE
First Solar (FSLR) is leading solar stocks with an ascending triangle breakout on expanding volume. As a bullish continuation pattern, the breakout signals a continuation of the prior advance and targets a move to the low 30s. Click this image for a live chart.... READ MORE
Stocks started the day weak as the major index ETFs gapped down on the open. This gap did not last long as stocks rallied the rest of the day and closed higher. The actual gains were not huge, but the ability to rally after a gap down shows resilience. The... READ MORE
AA Bounces off Support with mini-breakout. ORCL Advances Nine Days Straight. Plus ALTR, BOOM, KLAC, LLTC, ORCL, TJX This commentary and charts-of-interest are designed to stimulate thinking. This analysis is not a recommendation to buy, sell, hold or sell short any security (stock ETF or otherwise). We all need to... READ MORE
Momentum is improving for lululemon (LULU) as MACD turned positive for the first time since late October. On the price chart, the stock is challenging the upper trend line of a falling channel. A breakout would signal a continuation of the August-September advance and target a move to new highs.... READ MORE
Stocks edged lower on Tuesday as the major index ETFs worked off short-term overbought conditions. Eight of the nine sectors were lower with the Finance SPDR (XLF) and Energy SPDR (XLE) leading the decline. Both lost around .90% on the day. The Utilities SPDR (XLU) bucked selling pressure with a... READ MORE
After a sharp decline the first half of November, the Utilities SPDR (XLU) firmed for two weeks and then surged above its first resistance level. Notice that upside volume also surged twice in the last six days. Broken support turns next resistance in the 35.75-36 area. Click this image... READ MORE
ATVI Hits Momentum of Truth after Big Game Release. AKAM Fails to Partake in Market Surge. Plus ARUN, CHS, GOOG, KSS, MMM This commentary and charts-of-interest are designed to stimulate thinking. This analysis is not a recommendation to buy, sell, hold or sell short any security (stock ETF or otherwise)... READ MORE
The markets started November in risk-off mode as stocks and the Euro moved sharply lower. Both became quite oversold mid month and the major index ETFs formed hammers on Friday, November 16th. These minor selling climaxes marked a short-term turning point as the markets devoured risk the following week. Stocks,... READ MORE
The Nikkei 225 ($NIKK) is getting a boost from weakness in the yen. Notice that the index broke resistance as the Yen Index ($XJY) broke support. The Nikkei benefits because a weaker Yen makes Japanese exports more competitive and this helps the overall economy. Click this image for a live... READ MORE
The Networking iShares (IGN) is showing some buying pressure with a flag breakout over the last four days. The ETF broke the September trendline in early November, pulled back with a flag and then broke the flag trendline. Notice that the price relative (IGN:SPY ratio) broke its trendline in... READ MORE
The Silver ETF moved sharply lower in October and then bounced with a rising wedge. The wedge is still rising, but broken support turns resistance in the 32.5 area. A wedge break would signal a continuation lower and target a move to next support in the 29 area. Click... READ MORE
Stocks found a bid on Monday as the Consumer Staples SPDR (XLP) continued its bounce off the rising 200-day moving average. Notice that XLP hit this moving average on Wednesday, firmed on Thursday and bounced on Friday. Today's follow through confirms support in the 34 area. Click this... READ MORE
Programming note: I will be taking some time off for Thanksgiving and the next commentary will appear on November 27th. Stocks managed to firm on Friday with a number of ETFs forming hammer-like candlesticks. Hammers form with small bodies near the top of the high-low range. The open and close... READ MORE
All sectors are down over the last two months, but some are down less than others. Of the nine sector SPDRs, the Consumer Staples SPDR (XLP) and the Healthcare SPDR (XLV) are holding up the best. Relative strength in these two defensive sectors confirms that the market is currently in... READ MORE
Take-Two Interactive ($TTWO) is showing relative strength with a triangle break earlier this week and break above its October highs today. Notice that the StockCharts Technical Rank (SCTR) broke out just before the triangle break and surged above 70 this week. TTWO is part of the S&P SmallCap... READ MORE
The bulk of the evidence remains decidedly bearish. Even though stocks are oversold, the decline accelerated the last two weeks and we have yet to see any kind of selling climax or washout that would indicate a near-term bottom. We have also yet to see support in the major index... READ MORE
Even though Thursday's losses were small, stocks just can't seem to shake that selling feeling. The major index ETFs edged lower the small-caps again leading the way. The sectors were mixed with three up and six down. Gains and losses were also small though. The Finance... READ MORE
The Home Construction iShares (ITB) failed to hold its break above 21 and plunged over the last eight days. Volume expanded as the ETF broke the October lows. Notice that On Balance Volume (OBV) peaked a week ahead of the ETF and then moved to its lowest level since early... READ MORE
Selling pressure continued on Wednesday as the major index ETFs fell over 1%. The S&P MidCap 400 SPDR (MDY) and Russell 2000 ETF (IWM) led the way with losses approaching 2%. All sectors were down with the Finance SPDR (XLF) and the Industrials SPDR (XLI) leading the way.... READ MORE
ALTR Firms At Support. ARO Bucks the Selling Pressure. Plus CAKE, CHKP, COST This commentary and charts-of-interest are designed to stimulate thinking. This analysis is not a recommendation to buy, sell, hold or sell short any security (stock ETF or otherwise). We all need to think for ourselves when it... READ MORE
The Silver Miners ETF (SIL) moved into a tight trading range in October and then broke support with a sharp decline the last four days. This move pushed prices below the lower Bollinger band as volatility expanded. Also notice that the ETF is now underperforming the Silver ETF (SLV). Click... READ MORE
Stocks continued to struggle as buyers found little reason to bottom pick on Tuesday. Stocks opened lower, surged in morning trade and then moved lower in the afternoon. The major index ETFs finished with small losses on the day. Seven of the nine sectors were lower with the Finance SPDR... READ MORE
The Nasdaq broke below the 200-day moving average with a gap down last week, and remains below this key level. This moving average and the small consolidation now turn into first resistance. Notice that RSI is almost at oversold levels (below 30). Click this image for a live chart... READ MORE
Stocks struggled on Tuesday with the major index ETFs finishing mixed. The Dow Industrials SPDR (DIA) edged higher, but the Russell 2000 ETF (IWM) and Nasdaq 100 ETF (QQQ) edged lower. Apple surged above 550 on the open, but closed below 445 as selling pressure hit. The market is wounded... READ MORE
CAT Forms Bear Flag after Breakdown. LXK Triangulates with Bearish Bias. Plus MKC, MMM, RTN, SYK, WOR This commentary and charts-of-interest are designed to stimulate thinking. This analysis is not a recommendation to buy, sell, hold or sell short any security (stock ETF or otherwise). We all need to think... READ MORE
The number of new 52-week lows surged above 90 for the NYSE and Nasdaq (combined). This compares to fewer than 50 new 52-week highs. Selling pressure is taking its toll the last few weeks. Of note, semiconductor powerhouse Intel (INTC) graced the new low list today. Click this image for... READ MORE
It was a rough week for the stock market. The S&P 500 lost 2.43% and all sectors moved lower, even the defensive sectors. The Consumer Discretionary SPDR (XLY) and Technology SPDR (XLK) lost around 2.5%, while the Finance SPDR (XLF) fell over 3% and the Utilities... READ MORE
The intraday bullish engulfing scan was quite full around 12PM ET with over 200 stocks making the cut. Among them, Amgen (AMGN) formed a bullish engulfing near the mid October low and 38.2% retracement. The channel is still falling here with the upper trend line marking resistance at 87.... READ MORE
With three downgrades, the indicator summary turned negative for the first time since June. The summary was zero (neutral) the last two weeks. The sharp decline over the last two days was enough to tilt the balance towards the bears. Of note, the NYSE AD Volume Line broke support, the... READ MORE
Stocks remained under pressure on Thursday with the major index ETFs falling 1% or more. As has been the case for some time, the Russell 2000 ETF (IWM) and the Nasdaq 100 ETF (QQQ) led the way lower. All nine sectors were down with the Consumer Discretionary SPDR (XLY) and... READ MORE
The Dow Jones Defense Index ($DJUSDN) plunged on Wednesday and broke support with further weakness on Thursday. This move reverses a five month uptrend. MACD also moved lower and is on the verge of turning negative for the first time since mid June. Click here to see a listing of... READ MORE
The markets moved from pre-election risk to post-election fear. Stocks, oil, copper and the Euro moved lower. Treasuries, the Dollar and gold moved higher. Yes, it is rare, and potentially stock market bearish, to see both gold and the Dollar moving higher. The finance sector was hit on the prospects... READ MORE