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... 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... 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... 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
Stocks ended mixed on Thursday as sharp rallies in the final hour paired losses significantly. The Nasdaq 100 ETF (QQQ) still lost over 1%, but the S&P Midcap SPDR (MDY) closed up .30% on the day. The nine sector SPDRs were mixed with four up and five down.... READ MORE
Stocks extended their oversold bounce with modest gains on Wednesday. All major index ETFs were up with the Russell 2000 ETF leading the way (+1.63%). The Dow Industrials SPDR, S&P 500 ETF and Nasdaq 100 ETF were up less than 1%. Eight of the nine sectors were... READ MORE
AEO Fails at Resistance. AAPL Stalls with Tablet War. HOTT Does not Look so Hot. Plus AMZN, DRI, SBUX, URBN 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 Egypt Index ETF (EGPT) surged in the lead up to Hosni Mubarak's resignation and then declined as democratic elections were called. The decline ended when uncertainty became certainty and Mohammed Morsi was declared president on 24-June. With the correction holding above the December low, it looks... READ MORE
Stocks got an oversold bounce on Tuesday with the S&P MidCap 400 SPDR (MDY) leading the way. The gains, however, were quite modest with MDY up just .67% and the S&P 500 ETF (SPY) edging higher by .50%. Nothing to write home about for sure. Stocks... READ MORE
American Eagle Outfitters (AEO) has been stuck in a consolidation since early May. Moreover, notice that this consolidation is narrowing as the Bollinger Bands contract. In the indicator window, Bollinger BandWidth is currently at its lowest level since February, which was scene of the last big contraction and breakout. Watch... READ MORE
Stocks moved sharply lower on Monday with an extremely weak opening. The major index ETFs gapped down on the open, drifted lower throughout the morning and then edged off their lows in the afternoon. Even though selling pressure abated in the afternoon, buying pressure was certainly uninspiring and the gaps... READ MORE
ABX Forms ABC Falling Wedge. HD Struggles at Resistance. NVDA Tests Gap Zone with Small Wedge. Plus AFFX, CX, MS, UTHR 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
Stocks were down sharply on Monday, but there were a two pockets of strength. The image below was taken from the ETF market summary. Notice that the Commodity Index Fund (DBC) and the Gold Miners ETF (GDX) are positive for the day. Also of note, gold, silver and corn were... READ MORE
It is shaping up to be another big week on Wall Street and in Europe. On the news front, we have some key economic reports, another critical EU Summit and a potential ruling on healthcare reform. On the technical front, note that the major index ETFs failed at broken support... READ MORE
Alcoa (AA) is part of the Basic Materials SPDR (XLB) and in a clear downtrend. On the P&F chart (3 x .25), the stock broke to new lows in 2011 and then formed a descending triangle the last nine months. The red A marks October 2011 and the... READ MORE
Stocks made a valiant run in June, but it was cut short with Thursday's sharp decline. Even though a few indicator groups were upgraded, the bulk of the evidence remains bearish. Strength within the NYSE, pushed the NYSE AD Line sharply higher and NYSE Net New Highs into... READ MORE
The market started the week in risk-on mode, but made a sharp u-turn on Thursday with a move to risk-off. The major index ETFs were down sharply with small-caps (IMW) and mid-caps (MDY) leading the way. Both lost over 2.5% on the day. All... READ MORE
The image below comes from the Sector Carpet. First, notice that all sectors are lower. Second, notice that the Basic Materials SPDR (XLB), Energy SPDR (XLE) and Technology SPDR (XLK) have the most red. The Consumer Discretionary SPDR (XLY) is not far behind. Third, notice that the defensive sectors (XLU,... READ MORE
Stocks edged lower on Wednesday as the Fed failed to inspire a continuation of the current rally. Except for the Nasdaq 100 ETF (QQQ), which gained .08%, the major index ETFs closed fractionally lower. Seven of the nine sectors were down with the Industrials SPDR (XLI), Basic Materials SPDR (XLB)... READ MORE
AEO Extends Consolidation with Tight Triangle. BIDU Shows Relative Weakness. JBLU Consolidates after High Volume Surge. Plus FFIV, FLEX, IDTI, LEN, OXY, RIMM, STT, TOL 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... READ MORE
Cheesecake Factory (CAKE) moved sharply lower at the beginning of June and then rebounded with the market the last few weeks. This rebound, however, is running into resistance from the gap and prior high. Also notice that MACD turned down and is on the verge of breaking below its signal... READ MORE
Stocks moved higher again on Tuesday, but performance was lopsided again. The Russell 2000 ETF (IWM) led the market with a 1.73% gain, but the S&P 100 ETF (OEF) lagged with a .37% gain. Seven of the nine sectors were up. Money moved out of the Consumer... READ MORE
The PerfChart below shows the three month performance for five commodity indices and the CRB Index ($CRB). All five are down and $CRB is down around 14%. Blame it on energy, which is down over 21%. Precious metals have held up relatively well with a decline less than 4%. Click... READ MORE
It was a mixed day for stocks with the Dow Industrials SPDR (DIA) moving lower and the Nasdaq 100 ETF (QQQ) moving higher. The market was weighed down by the Finance SPDR (XLF) and Energy SPDR (XLE), but lifted by the Technology SPDR (XLK) and the Consumer Discretionary SPDR (XLY)... READ MORE
GFI Forms Pennant. ISIL Surges on Big Volume. MOS Breaks Inverse HS. Plus FICO, ISRG, NYT, THC, TSN 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 image below, which stems from the sector summary at StockCharts.com, shows the key industry groups within technology sector. On Monday, computer hardware, internet and semiconductors were leading the way higher. Users can click on these names to see the individual stocks, which is a great way to identify... READ MORE
And the results are in! Pro-bailout party New Democracy won the Greek election with around 30% of the vote. They will now have three days to form a coalition with a parliamentary majority. Now comes the tough stuff. The new government will need to renegotiate the austerity package, pass... READ MORE
The Russell 2000 ETF (IWM) got a bounce at the end of the week, but remains in a trading range since the June 6th gap. There are two dynamics at work on this chart. First, the medium-term trend is down after the ETF broke neckline support from a head-... READ MORE
The Dow surged over 150 points on Thursday and broke above its May high. With only 30 stocks, chartists can use the CandleGlance feature at StockCharts.com to find which stocks led the move. The Dow is a price weighed average and the stocks with the highest price have the... READ MORE
After a rebound last week, stocks turned flat this week and treaded water ahead of the Greek elections. The AD Volume Lines established minor resistance levels with the late May highs and breakouts would be short-term bullish. However, this would not be enough to turn medium-term bullish again.... READ MORE
Stocks caught a bid on Thursday with the major index ETFs closing modestly higher. The Dow Industrials SPDR (DIA) led the way with a 1.19% advance. The Nasdaq 100 ETF (QQQ) lagged with a .37% advance. All sectors were up with the Energy SPDR (XLE) and Healthcare SPDR (XLV)... READ MORE
There is a real gut check underway in the stock market. The S&P MidCap 400 SPDR (MDY) surged last week and then corrected the last 5-6 days with a falling flag/wedge. This could be a bullish continuation pattern, but one must wonder if the bulls have... READ MORE
Stocks moved higher in the first half of the day and then lower in the second half. With the afternoon decline outpacing the morning advance, the major index ETFs closed modestly lower. Mid-caps led the decline with the S&P MidCap 400 SPDR (MDY) losing 1.34%. Small-... READ MORE
LTD Forms Flat Flag after Sharp Decline. MMM Forms Harami at Key Retracement. SBUX Breaks Descending Triangle Support. Plus AES, APC, COV 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... READ MORE
The Energy SPDR (XLE) remains in a downtrend overall, but signs of life are appearing as the ETF gapped higher last week and formed a pennant over the last five days. A break above this short-term consolidation could signal a continuation of the early June bounce and target further... READ MORE
Stocks rebounded after Monday's bearish reversal day with the major index ETFs gaining over 1%. The Dow Industrials SPDR (DIA) led the way with a 1.61% gain, while the S&P MidCap 400 SPDR (MDY) lagged with a 1.01% gain. Eight of nine sectors were... READ MORE
No wonder the S&P 500 ETF (SPY) cannot make up its mind on direction. The ETF broke key support in mid May and the 50-day moving average turned lower. Combined with Monday's high, these no mark the rock or resistance zone. The support zone, or... READ MORE