Stocks moved sharply lower on Friday with the Russell 2000 ETF (IWM) and the Nasdaq 100 ETF (QQQ) leading the major index ETFs down. Seven of the nine sectors were lower with the Finance SPDR (XLF) leading this group. The Energy SPDR (XLE) and the Utilities SPDR (XLU) managed to... READ MORE
The first chart shows the S&P Sector PerfChart for the one month time frame (22 trading days) and the second chart shows the three month timeframe (64 trading days). Note that these PerfCharts show relative performance, which is the amount the SPDR is outperforming or underperforming the S&... READ MORE
After a four day surge that carried the Dow Industrials SPDR (DIA) above 129, the ETF formed a doji to signal indecision on Thursday. Also notice that DIA formed indecisive candlesticks at the prior two peaks. A gap down and long black candlestick on Friday would form a rare evening... READ MORE
The indicator summary remains positive overall, but I downgraded the small-cap/large-cap indicator because small-caps are seriously underperforming the last two weeks. Even though the indicators remain net positive, I remain concerned because some key indicators are still bearish. The AD Volume Lines are bearish overall and the offensive sectors... READ MORE
Technology stocks led the market again on Thursday, but the finance sector weakened again and small-caps were also down on the day. Relative weakness in these two is not a good sign. At best, it points to a divided market that will trade sideways. At worst, it points to underlying... READ MORE
The Finance SPDR (XLF) led the market higher from early June to mid July, but stalled the last four days and started showing relative weakness. The indicator window shows the price relative (XLF:SPY ratio). Notice how this indicator broke support from the early July low and XLF is now... READ MORE
SWKS Bounces off Support with Good Volume. UNH Firms at Support Zone. Plus BDX, BX, CNX, MCD, MCO, MDT, ZION 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... READ MORE
The bulls simply refuse to buckle. Economic reports have been below expectations for months, earnings are less than stellar and the Fed stands ready to act. Perhaps the stock market is pricing in quantitative easing for August or September. Even though stocks advanced, the advance was not even and did... READ MORE
Stocks moved higher with the technology sector leading the charge on Wednesday. The Sector Carpet shows lots of green in this key sector. Also notice that four of the top five performers come from technology. The finance sector was the weakest with three of the five biggest losers coming from... READ MORE
Stocks were edgy on Tuesday as Fed chairman Ben Bernanke testified before congress. After an initial pop on the open, the major index ETFs dipped lower for around 40 minutes and then surged back into positive territory in the early afternoon. Tuesday's dip now provides a short-term support... READ MORE
Selling pressure hit the stock market after a weak retail sales report, but the major index ETFs managed to firm and finish with small losses. With another key economic report coming in below expectations, investors turned their attention to the prospects of more quantitative easing. Fed chairman Ben Bernanke testifies... READ MORE
AES Extends Flag Consolidation. ATVI Surges and then Forms Bull Flag. COV Breaks Wedge Trend Line. Plus ARO, DNR, GS, IACI, INTU, MRO 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... READ MORE
The chart below shows four of the thirty CandleGlance charts for the Dow Industrials. Notice that big pharma is leading the way as Pfizer (PFE) and Merck (MRK) surge to new highs. The Healthcare SPDR (XLV) is also hitting a new high today. Click this image for a live chart... READ MORE
With oil bouncing over the last few weeks, Halliburton is tracing out a little head-and-shoulders bottom. Despite a potentially bullish pattern, the stock remains short of the breakout needed to confirm a reversal. Also note that a volume expansion is needed to confirm any breakout. Click this image for a... READ MORE
The risk-on trade took hold on Friday with stocks, oil and gold surging. All major index ETFs were up over 1%. Eight of the nine sector SPDRs were up over 1% with the Finance SPDR (XLF) leading the charge (+2.76%). JP Morgan was the big story of the day... READ MORE
The stock market bottomed on June 4th and moved higher the last 5-6 weeks. All major index ETFs are up since June 4th, but the Nasdaq 100 ETF (QQQ) sports the smallest gain. The PerfChart below shows QQQ up 2.8% and the rest up 4% or more. Note that... READ MORE
Despite a decline this week, the indicator summary remains unchanged and net positive. Even so, there are some glaring signs of weakness within the market. The AD Volume Lines failed at broken support and remain bearish overall. The Bullish Percent Indices for the technology and industrials sectors are below 50%... READ MORE
Stocks started the day with a sharp move lower, but quickly firmed and worked their way higher the rest of the day. The major index ETFs closed with relatively small losses. The sectors were mixed with five down and three up as money moved to relative safety. Note that the... READ MORE
The Sector PerfChart shows the percentage change for the S&P 500 and the nine sector SPDRs over the past month (22 trading days). Note that the S&P 500 is up, but the Consumer Discretionary SPDR (XLY), Technology SPDR (XLK) and Industrials SPDR (XLI) are down. In... READ MORE
Look out below! Asian stocks are getting hammered with the Nikkei down around 1.5% and the Hang Seng down around 2%. European stocks are down modestly. US stocks were weak yesterday and even dipped after the Fed minutes, but another one of those mysterious buying surges pushed stocks off... READ MORE
AES Forms Bull Flag after Breakout. AMZN Breaks Channel Support. HD Forms Small Wedge after Gap Down. Plus HBAN, ILMN, PBCT 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... READ MORE
The Consumer Discretionary SPDR (XLY) is one of the weakest sectors on Wednesday. Drilling down into the sector reveals weakness in apparel stocks. True Religion (TRLG) is down over 5%, while Polo Ralph Lauren (RL) and Warnaco (WRC) are down around 4%. Click this image for a live chart... READ MORE
Stocks started the day strong, but selling pressure soon took over and the major index ETFs closed lower. The S&P MidCap 400 SPDR (MDY) led the decline with a 1.12% loss, but the S&P 500 ETF (SPY) was not far behind with a .87% loss.... READ MORE
The Dow Industrials SPDR (DIA) formed a harami last week and then gapped down on Friday. This gap below 128 held as the ETF opened near 128 and then closed below 127 on Tuesday. Short-term, the bulls need to fill this gap. A break below the rising wedge trendline would... READ MORE
Stocks edged lower on Monday with the major index ETFs finishing slightly lower. Eight of the nine sectors were lower with the Energy SPDR (XLE) and Consumer Discretionary SPDR (XLY) leading the decline. Both were down around .5%. The Healthcare SPDR (XLV) was the lone gainer as big pharma stocks... READ MORE
AIG Hits Resistance at Key Retracement. APD Forms Pennant Near Resistance. MYL Surges after ACA Ruling. Plus CAH, CRM, DDS, MAT, XRAY 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
Relative weakness in the **Networking iShares (IGN)** and the **Market Vectors Semiconductor ETF (SMH)** weighed on the technology sector this week. The chart below shows SMH breaking down in May and then bouncing back to broken support in mid June. While SPY moved above its mid June high, SMH did... READ MORE
I am taking a day off on Monday. Art's Charts will return on Tuesday.... READ MORE
The Yen ETF (FXY) and the S&P 500 have been moving opposite each other for the last 6-7 months. This is because the Yen represents a safe-haven (risk-off) and the S&P 500 represents a risky asset (risk on). Accordingly, FXY broke down in June and $SPX... READ MORE
With a number of upgrades, the indicator summary turned positive this week. I am, however, concerned, that this positive switch could be short-lived because some key sectors are lagging and the AD Volume Lines have yet to turn bullish. Also note that the advance since June is looking like a... READ MORE
Central banks around the world continue to ease monetary policy and open the money spigots. The Bank of England increased its third quantitative easing program by 50 billion pounds, the European Central Bank (ECB) cut all kinds of rates on Thursday and China surprised the markets with another rate cut.... READ MORE
KLA-Tencor (KLA) has an island reversal of sorts working the last three weeks. Notice how the stock gapped down in mid June and then back up in late June. Since gapping higher last week, the stock consolidated the last four days. A break above consolidation resistance would signal a continuation... READ MORE
Stocks have been trending higher since early June and the major index ETFs extended these trends on Monday-Tuesday. Uptrends suggest that the path of least resistance is up, but an economic avalanche over the next two days could make-or-break said trends. The European Central Bank (ECB) and Bank of England... READ MORE
Charts of Interest: ABX, AFFX, AMCC, CDE, FIO, FLEX, GFI, TEVA, WEN This commentary and charts-of-interest are designed to stimulate thinking. This analysis is not a recommendation to buy, sell, hold or sell short any security (stock ETF or otherwise). We all need to think for ourselves when it comes... READ MORE
The big trend is down since early 2011 and a big head-and-shoulders could be forming, but, for now, the TSX Composite is showing life with a surge off support that extends all the way back to early 2010. Also notice that MACD formed a higher low and is poised to... READ MORE
Even though the NY Composite ($NYA) remains below its prior highs, the NYSE AD Line hit a new high this week and shows underlying strength. Advance-decline numbers measure the internal strength or weakness within an index. A new high in the AD Line shows internal strength that may carry thru... READ MORE
The economic news was mixed on Monday. May construction spending hit its highest level in over 2 years. A decrease in public sector construction spending was offset by an increase in private sector spending. The ISM Manufacturing Index slipped below 50 (49.7), which is the first reading below 50... READ MORE
This broken week could be pivotal for the markets. The week is short with a July 4th break on Wednesday. Despite the shortened week, there are several key economic reports and the big employment report is Friday. The European induced surge is positive from a technical standpoint, but we need... READ MORE
The S&P Sector Carpet is full of green on Friday with the darkest green showing up in the technology and industrials sectors. The average gain in the tech sector is 3.4%, while the average gain in the industrial sector is 3%. There are isolate spots of red... READ MORE
The June run is set to continue with stock futures up sharply on Friday. Continued strength means the indicator summary is improving. Note that the NYSE AD Line and NYSE Net New Highs are bullish. The Bullish Percent Indices are bullish on the whole and the volatility indices fell sharply... READ MORE