DOLLAR JUMPS ON FED MESSAGE... The Fed's more hawkish tone yesterday set off a number of intermarket reactions. Stocks sold off (although not by that much), and bond yields rose. Prospects for higher rates in the U.S. also had a positive impact on the dollar. Chart 1... READ MORE
NASDAQ 100 HITS NEW RECORD... Chart 1 shows the Invesco QQQ Trust closing above its April high to achieve a new record. Technology was the day's strongest sector. Chart 2 shows the Technology SPDR (XLK) nearing a test of its April high. Semiconductors had another strong day as... READ MORE
NASDAQ LEADS MARKET HIGHER... Stocks are reacting positively to this morning's job report which came in weaker than expected but showed job growth during May. Bond yields weakened on the report which may be helping to boost stocks, and technology stocks in particular. Chart 1 shows the Invesco... READ MORE
10-YEAR YIELD PULLS BACK... Despite all the talk about accelerating inflation, bond yields have been pulling back of late. The daily bars in Chart 1 show the 10-Year Treasury yield falling to the lowest level in three weeks and trading below its 50-day moving average. The TNX set a 52-week... READ MORE
MONTHLY RANKINGS... Major stock indexes are ending the week with little change. The Dow and S&P 500 show a modest loss while the Nasdaq is showing a minor gain. To get a better sense of what's moving the market, a look at sector rankings can offer... READ MORE
DOW AND S&P 500 HOLD SHORT-TERM SUPPORT...Stocks opened sharply lower this morning but recovered most of their losses by day's end. One encouraging sign was that the Dow the S&P 500 found some support at their 50-day moving averages and potential chart at... READ MORE
GOLD AND ITS MINERS MAY BE TURNING UP... Precious metals have sat out the rally in most commodity markets. But money is starting to flow into the group and its miners. The daily bars in Chart 1 show the VanEck Gold Miners ETF (GDX) rising above its early 2021 peak... READ MORE
THE NASDAQ REMAINS IN SHORT-TERM DOWNTREND... The tech-dominated Nasdaq market continues to show relative weakness. Chart 1 shows the Nasdaq Composite trading well below its 50-day average and in a short-term downtrend. Prices are attempting a rebound today from yesterday's heavy selling. If that low doesn't... READ MORE
INFLATION SPIKE BOOSTS BOND YIELDS... A spike in April CPI and its inflationary implications is boosting bond yields and hurting stock prices. Chart 1 shows the 10-Year Treasury yield jumping nearly 6 basis points today to 1.68% and close to exceeding its late April peak. That's having... READ MORE
DOW NEARS SHORT-TERM SUPPORT... The Dow gapped sharply lower today and inflicted some short-term chart damage. Chart 1 shows its 14-day RSI backing off from overbought territory near 70; the red arrow shows its daily MACD lines forming a lower high than in April which shows some loss of upside... READ MORE
TECHNOLOGY HAS BEEN A MARKET LAGGARD... With the economy showing signs of strength, money has been rotating into more economically-sensitive sectors at the expense of technology stocks. The table in Chart 1 shows materials, energy, and financials being the three strongest sectors over the last month, while technology has been... READ MORE
NASDAQ BACKS OFF FROM PREVIOUS HIGH... Chart 1 shows the recent rally in the Nasdaq Composite meeting new selling near its mid-February peak which was the first warning that its uptrend might be losing upside momentum (red line). Today's lower gap confirms the idea that a short-term top... READ MORE
AMAZON RALLIES ON STRONG EARNINGS... Amazon was the last of the big five tech stocks that reported earnings this week. And it reported strong quarterly profits as did the other big tech stocks. Of those four, Facebook and Alphabet gained ground while Apple and Microsoft pulled back on the strong... READ MORE
TESLA DROPS AFTER REPORTING RECORD EARNINGS... How stocks react to earnings reports often tells us something about their technical condition. Tesla (TSLA) is a good example. Two weeks ago I showed Tesla rising decisively above its 50-day moving average which suggested that the stock might be bottoming. That interpretation is... READ MORE
TEN-YEAR TREASURY YIELD TESTS 50-DAY AVERAGE... The decline in bond yields over the last month has helped boost stock prices, and technology stocks in particular. Chart 1, however, shows the 10-Year Treasury Yield testing its 50-day moving average. The major trend of bond yields remains higher with expectations for higher... READ MORE
DOW AND S&P 500 MAINTAIN UPTRENDS... Stocks snapped a two-day losing streak today and are maintaining their current uptrend. Chart 1 shows the Dow Industrials trading well above their 20-day moving average which keeps their short-term uptrend intact. Chart 2 shows the S&P 500 doing the... READ MORE
UTILITIES ARE WEEK'S STRONGEST SECTOR...Chart 1 ranks the week's eleven S&P 500 stock sectors and shows ten of them in the black for the week. Only Communication Services are seeing a small loss. Some other laggards include industrials, financials, and energy. What may... READ MORE
DOLLAR INDEX BACKS OFF FROM 200-DAY LINE...A rebound in the dollar during the first quarter may have run its course. Chart 1 shows the Invesco Dollar Index Fund (UUP) falling back below its 200-day moving average and threatening its 50-day line. What the dollar does from here could have... READ MORE
TESLA TURNS UP... Tesla is the day's biggest percentage gainer in the S&P 500 and the Nasdaq 100. It's also the day's strongest stock in the Consumer Discretionary SPDR which is itself hitting a new record. And it's chart is... READ MORE
APPLE MAY BE BOTTOMING... Chart 1 shows Apple (AAPL) in a downside correction since late January. That correction has taken the stock back down to its 200-day moving average which has acted as a long-term support line. Assuming that its long-term trend is still up, this would be a logical... READ MORE
% OF S&P 500 STOCKS ABOVE 50-DAY AVERAGE IS HIGH... Market breadth figures for the stock market remain quite strong. A couple of them, however, suggest that the market may be stretched on the upside. Chart 1 shows the percent of S&P 500 stocks above their 50-day... READ MORE
CONSUMER DISRETIONARY SPDR NEARS OLD HIGH...Stocks are trading sharply higher today following a strong jobs report on Friday and news today of a stronger service economy. The Dow and S&P 500 are trading in record territory and the Nasdaq isn't far behind. Nine of the... READ MORE
TECHS ARE HAVING A STRONG DAY... Technology stocks are the day's strongest sector which is helping boost the Nasdaq market. As a result, the Nasdaq is leading today's rally. Chart 1 show the Invesco QQQ Trust trading 1.8% higher today and nearing a test of... READ MORE
SOUTHWEST AIRLINES CLEARS OVERHEAD RESISTANCE... Airlines stocks continue to gain more ground. Although the entire group is rising, three in particular caught my eye. The weekly bars in Chart 1 show Southwest Airlines (LUV) having cleared resistance along its early 2020 peak and reaching the highest level in more than... READ MORE
MATERIALS NEAR RECORD... In a generally positive market day, materials are one of the days strongest sectors. Chart 1 shows the Materials Sector SPDR (XLB) gapping higher and nearing a new record. It's being led higher by aluminum and steel stocks which are also having a strong day.... READ MORE
THE NASDAQ MARKET REMAINS ON THE DEFENSIVE...The Nasdaq market remains on the defensive. Chart 1 shows the Invesco QQQ Trust meeting resistance at its 50-day average. That's mainly because of weaker tech stocks. Chart 2 shows the Technology SPDR (XLK) trading below its 50-day line as well.... READ MORE
10-YEAR YIELD SPIKES HIGER... Bond yields continue to spike higher. Chart 1 shows the 10-Year Treasury yield jumping 9 basis points to 1.73% which is the highest level in fourteen months. That's helping lift financial shares, but weighing heavily on technology stocks. As a result, the Nasdaq... READ MORE
MARKETS REBOUND... Stocks rebounded following today's dovish Fed statement. In addition, the 10-Year Treasury yield pared some of its earlier gains. Charts 1 and 2 show the Dow and S&P 500 touching new records. Chart 3 shows the Nasdaq Composite trading back above its 50-day moving... READ MORE
10-YEAR YIELD EXCEEDS 1.60%...After a modest consolidation, bond yields are spiking again. The daily bars in Chart 1 show the 10-Year Treasury yield climbing 10 basis points to 1.63% which puts it at the highest level in more than a year. The weekly bars in Chart 2... READ MORE
NASDAQ AND TECH SPDR REGAIN 50-DAY AVERAGE...The tech-dominated Nasdaq market led a broad rally in stocks today. Chart 1 shows the Nasdaq Composite Index gaining 2.5% and trading back above its 50-day moving average. It was the strongest of the three major stock indexes. The Dow Industrials and... READ MORE
TECH NEARS OVERHEAD RESISTANCE... While the Dow and S&P 500 are trading higher today, with the Dow in record territory, the tech-dominated Nasdaq market continues to lag behind the rest of the market. Chart 1 shows the Technology SPDR (XLK) nearing a test of its 50-day moving average... READ MORE
ENERGY STILL IN THE LEAD... After a hectic week when a rise in bond yields caused some profit-taking in technology stocks and the Nasdaq market, a strong jobs report on Friday helped stocks end the week on a strong note. One of the factors driving bond yields higher is expectations... READ MORE
BOND YIELD JUMPS... Bond yields are spiking higher again today following dovish remarks from Jerome Powell. Chart 1 shows the 10-Year Treasury yield jumping 7 basis points to 1.54% and putting in on track for the highest close in more than a year. As a result, stocks are coming... READ MORE
NASDAQ 100 FALLS BACK BELOW 50-DAY LINE... Chart 1 shows the Invesco QQQ Trust losing -2.8% today and falling further below its 50-day moving average. Technology was the day's weakest sector along with consumer discretionary stocks. Eight of the eleven market sectors ended lower. More cyclical parts... READ MORE
GOLD SPDR CONTINUES TO WEAKEN...With all the talk about rising inflation and rising commodity prices, it may seem strange to see the gold market still in a downtrend. But it is. The daily bars in Chart 1 shows the Gold SPDR (GLD) falling to the lowest level since last... READ MORE
10-YEAR YIELD REACHES 1.50%... The 10-Year Treasury yield is spiking above 1.50% today for the first time in a year. The size and speed of the yield advance is putting downside pressure on stocks, and technology stocks in particular. Chart 1 shows the Invesco QQQ Trust trading below... READ MORE
ROTATION FROM GROWTH TO VALUE... One of the side-effects of rising bond yields has been a rotation out of technology-dominated growth shares into more cyclical value shares. Chart 1 shows the S&P 500 Growth iShares (IVW) pulling back over the last week and trying to stay above its... READ MORE
DOW TRANSPORTS HIT NEW RECORD...While looking through today's sector charts, I was struck by the differing performance between transportation stocks and utilities. And that difference should carry good news for stocks in general. Chart 1 shows the Dow Jones Transportation Average rising into record territory today. It&... READ MORE
POTENTIAL BOND YIELD RESISTANCE...The recent upmove in bond yields is attracting the attention of bond and stock holders. It's obviously negative for bond prices. But it could lead to some selling of stocks if bond yields were to climb too far too fast. So let's... READ MORE
FINANCIAL SPDR HITS NEW RECORD...Energy and financials are the day's two strongest sectors. Freezing temperatures across the U.S. are pushing energy prices higher today and energy stocks along with them. Financials are also having a strong day courtesy of another jump in Treasury bond yields. Chart... READ MORE