Technically, SPY is in a medium-term uptrend after the October breakout in the 122-124 area. This breakout can be seen on the daily chart below. Broken resistance turns into support and the ETF is currently testing this support zone with two declines into the 122-124 area. After a sharp advance... READ MORE
There is no change in the indicator summary as the October breakouts continue to hold. Even though the stock market got shook pretty hard last week and this week, these breakouts are still holding. We cannot question a breakout unless there is a move back below broken resistance. For example,... READ MORE
For the second time in three weeks, the Dow Industrials SPDR (DIA) moved above 121 and then gapped down. These two gaps indicate that DIA has stiff resistance in the 122 area. Key support is based on the prior trough at 116. Follow through below this level would reverse the... READ MORE
Global equities remain tethered to the Euro and the outlook for the European debt dilemma. Even though a big ocean separates the US from Europe, US traders and investors should keep an eye on the spread between German bond yields and other bond yields, namely Italian and Spanish. This is... READ MORE
IGT Forms Large Shooting Star. JBHT Hits Resistance at 61.80% Retracement. PLCE Declines from Resistance on High Volume. Plus EXPD and GE 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
As noted yesterday, the medium-term trend was up because of the resistance breakout in October. This breakout can be seen on a daily chart. Broken resistance in the 122-124 area turned into support and held after the Throwback. The yellow area marks this Throwback on the 60-minute chart. Even though... READ MORE
The Regional Bank SPDR (KRE) and the Homebuilders SPDR (XHB) have been leading the market higher since early October. Both bottomed with the October 3rd close and surged over 20% the last five weeks. Also notice how these two are moving step-for-step. KRE is red and XHB is black. Strength... READ MORE
Even though SPY formed a bearish rising flag after the plunge to 122, the ETF has yet to break support as a flat consolidation formed the last few days. The ETF broke below the lower trendline of the rising flag on Friday, but quickly rebounded to establish support at 124.... READ MORE
AMKR Forms Ascending Triangle. COST Consolidates Near Resistance. SWKS Breaks Flag Trendline with high Volume. Plus BSX, KGC, MDT, NVDA, WNR 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
Randgold Resources (GOLD) is leading the gold miners and gold with a new 52-week high the last few days. Also note that Randgold broke resistance with a move above 115. The indicator window shows Randgold relative to gold with a ratio plot (GOLD:$GOLD). The Price Relative is trending up... READ MORE
Earlier this week I noted that the Nasdaq 100 ETF, the Russell 2000 ETF and the S&P 500 ETF were testing broken resistance. The October surges produced breakouts and it is important that these resistance breakouts hold. Basic technical analysis teaches us that broken resistance levels turn into... READ MORE
Apple Corp (AAPL), which accounts for around 14% of the Nasdaq 100 ETF (QQQ), gapped down in mid October and then consolidated. This low volume consolidation now looks like a flat flag. Watch the boundaries for the next directional clue. Any move Apple will affect QQQ. Click this chart for... READ MORE
The PerfChart below shows the performance for five intermarket ETFs. The Gold SPDR (GLD) and the US Oil Fund (USO) sport the biggest gains and are clearly leading the group. The 20+ year Bond ETF (TLT) and US Dollar Fund (UUP) have the smallest gains and are lagging. Such relative... READ MORE
The indicator summary remains positive, but breadth is split with the Nasdaq showing less strength. After some weakness early in the week, stocks rebounded on Wednesday-Thursday and the major index ETFs are largely holding their October breakouts. This selling pressure was enough to push Nasdaq net new highs into negative... READ MORE
And now for the employment report...Friday's market is at the mercy of the employment report, or rather Wall Street's reaction to the report. The S&P 500 ETF (SPY) bounced off medium-term support in the 122-124 area with a move above 126 the last... READ MORE
The Regional Bank SPDR (KRE) broke resistance with the October surge and broken resistance turned into support. This is a basic tenet of technical analysis. The throwback to broken resistance held (so far) as the ETF bounced back above 23 on Wednesday. Click this chart for a live image... READ MORE
A couple of wrenches, which were thrown out of left field, landed in the flywheel on Monday and Tuesday. While I am not sure the MF Global debacle and Greek referendum are totally to blame for the two day meltdown, there is no questioning the extent of recent selling pressure.... READ MORE
The S&P 500 ETF (SPY) broke support with a gap down and then consolidated around 122-124. This zone marks support on the daily chart. Broken resistance from the late August and mid September peaks turns support on this chart. On the 60-minute chart, the rise over the last... READ MORE
FNSR Breaks Wedge Trendline with Volume. PEP Consolidates after Surge. SBUX Gaps Down and the Gap Remains Unfilled. Plus DELL, MRVL, WFC 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
With a gap down and sharp decline the last two days, the S&P MidCap 400 SPDR (MDY) failed to hold the resistance breakouts around 160. Also notice that the ETF formed an island reversal, Last Thursday's gap was countered by today's gap to create... READ MORE
The Oil Service HOLDRS (OIH) surged over 30% in October and hit resistance in the 137 area. Resistance here stems from broken support and the August highs. This level also marks a 61.80% retracement of the prior decline and the ETF is quite overbought after the October run. Click... READ MORE
The market made a statement on Monday. After a big risk-on move last week, the market made a hard turn towards risk-off on Monday. It is just one day, but a bad week would likely suggest that the medium-term bullish signals seen over the last two weeks have been negated.... READ MORE
AAPL Forms Bear Flag. GME Forms Shooting Star Near Resistance. Upside Volume Surges for NXY. Plus BAX and SPLS 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... READ MORE
First, note that stocks remain in strong uptrends since the October 4th reversals. Second, the major index ETFs are quite overbought. IWM is up over 24% the last 19 days. SPY is up almost 17% and QQQ is up just over 15%. These are huge gains in just four weeks.... READ MORE
Chartists can measure the market's risk tolerance by comparing the simple line charts for four ETFs. The S&P 500 ETF (SPY) and US Oil Fund (USO) rise when risk is "on", while the 20+ year Bond ETF (TLT) and US Dollar Fund (UUP) rise... READ MORE
As noted last week, another strong move in the stock market would likely turn the indicator summary positive. That is indeed what we got, especially with Thursday's surge. The NYSE AD Line and Nasdaq AD Volume Line surged through resistance levels. New 52-week highs expanded as the cumulative... READ MORE
Stocks surged on the open and closed strong with all boats rising. Small-caps and mid-caps led the advance, which shows a strong appetite for risk. All sectors were up with the Finance SPDR (XLF) surging almost 6%. Whether short covering or new buying, Thursday's advance is setting the... READ MORE
The Steel ETF (SLX) surged above its mid October high with a big move on Monday, but turned indecisive on Tuesday and Wednesday. Notice how Tuesday's candlestick was completely within the range of Monday's. The pattern here is a Harami. This indecision extended as Wednesday'... READ MORE
Stocks started the day weak with large-cap techs leading the way lower early Wednesday. QQQ opened with a move below 56.5 and was down some 1.7% at one point. However, the bulls showed their resilience as stocks rallied back by the close. QQQ returned to positive territory. Small-caps... READ MORE
Careful, it is still earnings season. AKAM Forms Pennant after Big Surge. AMRK Consolidates with Triangle. SLB Forms Bull Flag after Trendline Break. Plus AFFX, MDR, WFT 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
After a surge to the early July high, the Retail HOLDRS (RTH) formed a rare evening doji star. This bearish candlestick reversal pattern features a white candlestick, a doji and a long black candlestick. There are gaps on either side of the doji. This doji has a long upper shadow,... READ MORE
Do yourself a favor. Don't read about the EU summit. As Mickey Blue Eyes might say: Fuggedaboutit! Focus on the price charts. All known information is reflected in the charts. In fact, there is also likely a little bit of unknown information in the charts as well. Stocks... READ MORE
Sometimes a failed signal is as good as a signal. Ciena (CIEN) broke resistance with a surge above 12.50 on Friday-Monday, but failed to hold this breakout after Tuesday's high-volume decline. A long black candlestick formed as the stock opened slightly lower, moved down throughout the day... READ MORE
It is getting close to crunch time for the EU. How many times have we heard this before? Anyhow, yet another deadline is approaching and there are still rifts between Germany and France on the size, scope and leverage for the bailout fund. Stocks extended their advances on Monday with... READ MORE
AMX Breaks Flag Resistance with Volume. CHS Bounces off Flag Support. STI Surges to Challenge Resistance. Plus NTAP, POT, SWKS, TMO 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
There were a lot of consolidation breakouts the last two days. After a surge the first week and a half of October, many stocks and ETFs consolidated for a week or so. With strength the last two days, these same stocks and ETFs are breaking consolidation resistance. The chart below... READ MORE
Stocks opened strong with a gap on Friday morning, consolidated and then closed strong. With another advance, the S&P 500 ETF (SPY) moved to a new high for the move as it broke above its mid October highs. The Russell 2000 ETF (IWM) is challenging its mid October... READ MORE
The Sector PerfChart below shows the performance for four sectors relative to the S&P 500. The Technology ETF (XLK) and the Consumer Discretionary SPDR (XLY) have been outperforming the S&P 500 since July 11th, while the Industrials SPDR (XLI) and Finance SPDR (XLF) have been underperforming.... READ MORE
The October rally stalled over the last few days and many charts show that this stall is occurring at important levels. The S&P 500 ETF (SPY) and Dow Industrials SPDR (DIA) are both stalling at resistance from the late August highs. The NYSE AD Line and Nasdaq AD... READ MORE
Short-term trading remains choppy as stocks bounce within a range. Playing the swings within this range is not suited for 60-minute charts. Chartists wishing to play these swings should turn to 10 or 15 minute charts. Thursday's SPY chart showed the swings within the trading range (119-123). It... READ MORE