The Basic Materials SPDR (XLB) reversed higher last week with an island reversal, but stalled over the last 4-5 days and a rising wedge is taking shape. For now, the gap and island reversal dominate the chart. A move below 36 would fill this gap and break the wedge... READ MORE
Upside Volume Picks up for ATML. KFY Gaps up and Consolidates. MD Forms Bullish Engulfing on High Volume. Plus BWA, DWA, KMX 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
Stocks opened weak after the ADP Employment report came in below expectations. Nevertheless, the market firmed and worked its way higher the rest of the day. Small-caps (Russell 2000) and techs (Nasdaq) finished with small gains, the S&P 500 and Dow ended the day with small losses.... READ MORE
The FirstTrust Internet ETF (FDN) broke out with a gap last week and that gap is holding. Mind that gap! The gap is bullish as long as it holds. Also notice that FDN broke resistance from the mid April highs and the Price Relative broke the trendline extending down from... READ MORE
It was pop and drop for stocks on Tuesday. Stocks surged on the heels of a better-than-expected ISM Manufacturing Index, but failed to hold early gains and fell sharply in the final hour. Small-caps (Russell 2000) and techs (Nasdaq) led the way lower. Traders may be getting... READ MORE
The Home Construction iShares (ITB) is leading the market higher again with a fresh 52-week high this week. The chart below also shows the Price Relative (ITB:SPY ratio) hitting a new high. Below this chart is a snapshot from today's new high list. A sort by... READ MORE
Stocks pulled back on Monday after the Chicago PMI came in below expectations and reached its lowest level since November 2009. Nevertheless, this key indicator came in at 56.20, which is well above 50 and indicative of economic expansion. Anything above 50 is positive. Don't forget that... READ MORE
BHI Breaks Pennant Resistance. HPQ Consolidates after High Volume Surge. MAN Breaks Pennant Support. Plus ADM, CMI, MON, SKS 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 StockCharts Technical Rank (SCTR) is updated throughout the day so traders can find stocks making significant technical moves when they happen. The table below represents a snapshot from April 30th at 12:21 PM ET. These are the stocks with the biggest technical rank moves within the S&... READ MORE
The short-term trend for stocks changed with Wednesday's gap and breakout. The medium-term and long-term trends were already up. This means that all three trends are up again and we could see a challenge to the March highs. While I hate to play the fundamental... READ MORE
The Consumer Staples Bullish% Index ($BPSTAP) is the strongest of the nine sector SPDR Bullish Percent Indexes. It is interesting that the BPI for this defensive sector shows the most strength. In contrast, the Consumer Discretionary Bullish% Index ($BPDISC) is currently around 69%. You can read more in our ChartSchool... READ MORE
A couple of indicators flipped this week, but the net result is the same as the indicator summary remains at +7. The Nasdaq AD Line shows too much weakness to be considered bullish, but it is offset by strength in the NYSE AD Line. Momentum flipped back to bullish as... READ MORE
The island reversals, up gaps and breakouts are holding. QQQ formed a lower low early this week, but IWM and SPY held above their early April lows. In fact, the recovery after Monday's gap down was so swift that I am going to draw my trendlines right through... READ MORE
The Fed made another policy statement with little change in its outlook or wording. Apple produced another blow out quarter. Even though neither event produced a surprise, Apple's coattails provided a big lift for the market overall. Most, if not all, of the gains came before the Fed... READ MORE
Careful out there. It is earnings season. AMT Breaks Out to 52-week High. DELL Hits Key Retracement. SLM Forms Small Descending Triangle. Plus AMZN, ATVI, FDX, IGT, TER, UTX. This commentary and charts-of-interest are designed to stimulate thinking. This analysis is not a recommendation to buy, sell,... READ MORE
The Dow Industrials remains in a long-term uptrend as it bounced off the bullish support line extending up from October 2011. This line and the April low combine to mark a key support zone in the 12850-12900 area. It would take a P&F print below the... READ MORE
Apple is stoking the street with a big move after reporting earnings. While a strong open is expected, what happens after the open, and after the Fed statement, is more important. Actually, I think Thursday's price action will hold the key to the next move in stocks. Trading... READ MORE
After hitting resistance in the 80-81 area in March, Citrix (CTXS) failed once again at this level with a shooting star candlestick last week. Notice the long upper shadow extending above 80. A down gap followed this bearish reversal candlestick and the next support zone resides around 71. Click... READ MORE
Stocks are short-term oversold, it is turnaround Tuesday, Apple reports earnings today and the bigger trend (6 months) remains up. On top of all this, traders will also be gearing up for the start of the Fed meeting today and policy statement on Wednesday (12:30PM). Stocks moved lower... READ MORE
APD Breaks Rising Flag Support. AZO Forms Pennant with Strong Up Volume. LXK Forms Bullish Engulfing on Big Volume. Plus AMX, ANF, APD, COH 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... READ MORE
When it comes to the Commodity Channel Index (CCI), there is oversold and then there is OVERSOLD. Readings below -100 are average oversold, while anything below -200 is really oversold. For just the third time in twelve months, 20-day CCI for Apple moved below -200. Prior readings occurred in... READ MORE
Stocks look heavy as selling pressure hit Friday afternoon and remains early Monday. $SPX futures are down around 10 points in early trading (5AM ET). Bonds and the Dollar are up, while gold and oil are down. Stocks surged last Tuesday, but gave back these gains with a decline on... READ MORE
The Energy SPDR (XLE) broke key support in late March with a sharp decline and has yet to reach the next key support level. The chart below shows XLE consolidating in the 69 area over the last two weeks. This consolidation looks like a rest within the downtrend. A break... READ MORE
The Nasdaq 100 ETF (QQQ) managed to firm after Monday's sharp decline, but remains within a short-term downtrend defined by a falling flag. It would take a move above resistance at 67 to reverse this fall. Chartists can also watch for the Commodity Channel Index (CCI) for... READ MORE
The indicator summary dipped to +7 this week after two downgrades. The bulk of the evidence is still bullish, but a few indicators weakened with the April decline. The NYSE AD Line and AD Volume Line briefly broke their March lows. The Energy Bullish% Index ($BPENER) dipped below 50% to... READ MORE
Stocks weakened over the last two days as IWM broke its rising flag trendline and SPY tested its rising flag trendline. QQQ remains in a downtrend as Apple continues to weigh. On the 60-minute chart, SPY broke support with a sharp decline in early April to start a short-... READ MORE
The Sector Market Carpet shows big gains in three stocks powering these industry groups. EBAY is up over 15% and leading the internet group. FFIV is up over 13% and leading the networking group. Both groups are part of the technology sector. GILD is up over 10% and leading the... READ MORE
The moment of truth is drawing near. After a bounce the prior five days, the major index ETFs consolidated on Wednesday. DIA and SPY formed inside days to signal short-term indecision. Also note that rising flag patterns formed in DIA, SPY and IWM. A break below rising flag support... READ MORE
Careful out there. It is earnings season. AMAT Consolidates in Key Retracement Zone. GRMN Forms Flat Flag after Breakdown. STT Breaks Short-term Resistance with Volume. Plus HRB and HUM. This commentary and charts-of-interest are designed to stimulate thinking. This analysis is not a recommendation to buy, sell,... READ MORE
Morgan Stanley fell to support with a sharp decline from late March to early April and then consolidated the last eight days. While the stock market bounced, MS remained flat and is lagging the market the past week. Watch the consolidation boundaries for the next directional signal. Click this image... READ MORE
Stocks surged with the oversold Nasdaq 100 ETF (QQQ) leading the major index ETFs higher on Tuesday. What is it about Tuesdays and turnarounds? All sectors were up with technology, industrials and energy leading the charge. IWM and SPY have five day uptrends working on the 60-minute charts, but... READ MORE
The Industry Summary page provides chartists with an easy way to view performance for the nine big sectors and the industry groups that make up these sectors. The image below shows DJ US Coal Industry Index ($DJUSCL) leading the energy sector with a 4 plus percent gains. Chartists can click... READ MORE
The short-term trends for the major index ETFs may be down, but the medium-term and long-term trends are still up. Keep this in mind before getting too bearish. My best guess is that stocks will enter some sort of trading range over the next few weeks to... READ MORE
Careful out there. It is earnings season. AKS Forms Two Inside Days. TRV Forms Falling Flag after Breakout. UAL Surges on Higher Volume. Plus DNR, GGP, LLY, ORCL, WM This commentary and charts-of-interest are designed to stimulate thinking. This analysis is not a recommendation to buy, sell, hold... READ MORE
With a bounce the last four days, the Transport iShares (IYT) held support from the early March low and remained range bound. Notice how the ETF has traded between 89.7 and 96 since mid January. Chartists should watch this range for the next directional signal. Click this image for... READ MORE
There were some trend changes over the last two weeks and some trend extensions. Most notably, stocks reversed their uptrends and the Dollar reversed its downtrend. While the bigger trend remains up for stocks, April's small-cap led decline started a short-term downtrend with key support breaks... READ MORE
After falling out of favor in February and March, Hewlett Packard found support around 23 and gapped up on Thursday. Notice that the stock opened strong, moved higher throughout the day and closed strong. This gap looks like a breakaway gap that is confirmed by strong volume. Click this image... READ MORE
With a sharp move lower the last five days, the German DAX Index ($DAX) is testing support from the March low. In fact, support in the 6600 area extends back to early February. A break below this support level would suggest an even deeper correction that could weigh on US... READ MORE
Priceline has been one of the top performers over the last four months, but a correction may be in the cards after a high-volume bearish engulfing pattern. Notice how the stock opened above the prior close and then declined to close below the prior open. The strong open failed... READ MORE
The chart below shows the High-Yield Bond ETF (JNK) breaking below its March low with a sharp decline the last eight days. This is negative for stocks because junk bounds and stocks tend to move in the same direction. Notice that the Correlation Coefficient (JNK, $SPX) has been mostly... READ MORE