The aerospace industry ($DJUSAS) has recently caught fire once again and it's worth noting - not only from an absolute perspective, but also from a relative strength standpoint. Each pullback over the past 5-6 weeks has been met with buying at the 20 day EMA, a bullish development.... READ MORE
The resurgence of small-caps has been greatly exaggerated. Consider this. The S&P 500 SPDR (_SPY) bottomed on August 5th and broke above its August highs on September 5th. The Russell 2000 iShares (_IWM) bottomed on August 27th and broke above its August highs on September 10th. SPY bottomed... READ MORE
By all accounts, it was an incredible first half of the year for many growth areas of the market, before modest gains in July gave way to a dicey August. While September is up a healthy 2.75%, one formerly leading area of the markets has been left behind, leaving... READ MORE
I discovered an interesting phenomenon today. When I ran my general Price Momentum Oscillator (PMO) scan, I got 19 results. That's more than we've seen the last few days, but then I decided I'd also run my Scan for Dogs, which is basically the... READ MORE
After studying the charts in my core ETF list, I came up with eight groupings. The top three groups represent ETFs that are still in uptrends, while the bottom three groups represent ETFs that are in downtrends and lagging overall. The middle groups are in flux. Group 4 represents ETFs... READ MORE
MAJOR STOCK INDEXES NEAR SUMMER HIGHS...Major U.S. stock indexes are trading higher today and approaching a test of their summer highs. Chart 1 shows the Dow Industrials continuing its bounce from yesterday afternoon and maintaining its bullish bias. Chart 2 shows the S&P 500 doing the... READ MORE
I think most technicians would agree that stock market action into the close is generally much more important than stock market action just after the open. That is magnified even further when we have a major event take place intraday. Yesterday, we had a widely anticipated Fed meeting with growing... READ MORE
Today, I posted a Relative Rotation Graph for US sectors on my Twitter and Instagram feeds highlighting the clear split between some sectors now visible on the daily timeframe. One of these sectors is Industrials, which is traveling deeper into the leading quadrant at a stable, almost horizontal, relative momentum.... READ MORE
The General Price Momentum Oscillator (PMO) scan threw 12 stocks at me today. We're still not seeing huge numbers coming in on these scans, which tells me to proceed with caution. Additionally, it's been interesting to see so many Industrials and REITs in the results. Today,... READ MORE
The DecisionPoint indicators help give us some insight into the condition of the market. The present short-term indicator deterioration is bearish, and the very overbought readings on our ITBM and ITVM suggest lower prices ahead. Currently, the trend of the markets is bullish, with all three of our trend models... READ MORE
STOCKS RECOVER EARLY LOSSES...Stocks recovered from initial selling after today's quarter point rate cut. Chart 1 shows the Dow Industrials ending 36 points (+0.13%) higher today to reverse earlier losses. The S&P 500 also closed modestly higher; while the Nasdaq ended modestly lower. Sector... READ MORE
I'm nervous. I believe the market has shown how nervous it's been as money quickly rotated from growth to value stocks ahead of today's Fed announcement. Here's a 10 year weekly look at the IWF:IWD ratio (Russell 1000 growth vs. value)... READ MORE
My Price Momentum Oscillator (PMO) scan is still not providing too many choices; the ones that are appearing are in defensive categories. This always makes me suspicious of market conditions. Despite the SPX rising to new all-time highs, I'm only seeing around 8-11 results. I did get two... READ MORE
The S&P SmallCap iShares (IJR) and Russell 2000 iShares (IWM) are leading the market in September with 8.22% and 7.66% gains, respectively. As the PerfChart below shows, these gains are more than double the gains in the S&P 500 SPDR (SPY), Nasdaq 100 ETF... READ MORE
Crude oil ($WTIC) was certainly in the news on Monday after a drone strike crippled Saudi Arabian oil production by roughly 50%. The immediate reduction in global oil supply was felt via a 14.68% surge in price to $62.90 per barrel. Obviously, that's a one-time type... READ MORE
I've been running my "Momentum Sleepers" scan daily in the hopes of catching some stocks that are building momentum underneath the surface. These are mostly beat-down stocks, but volume and momentum are beginning to improve. I use a "speedy" Price Momentum Oscillator (PMO) and... READ MORE
* High Velocity of Short-Term Indicators Indicate Higher Prices * Three Charts to Monitor for More Upside Potential High Velocity of Short-Term Indicators Indicate Higher Prices A couple of weeks ago, I cited some short-term indicators for the US stock market that struck me as being bullish. Several of these are now... READ MORE
CRUDE OIL AND ENERGY SHARES JUMP...As expected, the weekend attack on Saudi Arabia's oil facilities pushed the price of oil sharply higher today and in very heavy trading. Chart 1 shows the United States Oil Fund (USO) surging 12% to the highest level in four months. Energy... READ MORE
FedEx Corp (FDX) will be reporting its latest quarterly results tomorrow after the closing bell. In late-August, FDX printed a bullish engulfing candle and it's been moving straight up ever since. It's now running into both gap and price resistance, however, so it needs a catalyst.... READ MORE
The week remained positive for the Indian equities as the benchmark index closed with week with net gains. The markets witnessed up-moves over the past couple of days, but those were fueled mostly by short-covering, which was triggered from the lower levels. The NIFTY successfully defended the critical support levels... READ MORE
There are still plenty of strong uptrends out there in ETF land, but we are seeing a bit of rotation in the stock market. The Utilities SPDR (XLU), Real Estate SPDR (XLRE) and Consumer Staples SPDR (XLP) remain in uptrends, but they corrected the last six days as some out... READ MORE
TEN-YEAR TREASURY YIELD BOUNCES OFF MAJOR CHART SUPPORT... My Wednesday message showed the 10-Year Treasury yield bouncing off major chart support at its 2012 and 2016 lows and in a very oversold condition. That made a rebound in bond yields more likely. The weekly bars in Chart 1 show the... READ MORE
U.S. retail sales came in stronger than expected for the month of August and, while internet sales and home goods saw a pickup, the real boost in last month's retail numbers came from auto sales. The Auto Retail industry is experiencing considerable changes in its operating environments... READ MORE
I've been adamant that we remain in a secular bull market, and I'm sticking to it. Yes, September scares me. The Fed petrifies me. And no more tweets, please! Oh, and let's not forget about the inverted yield curve (which isn't inverted... READ MORE
Special Note: On Monday, September 16th, I will officially begin writing full-time at EarningsBeats.com as its Chief Market Strategist, returning to a role that I left in March 2015 when I joined StockCharts.com as a Sr. Technical Analyst. Below is a brief example of the type of information... READ MORE
Today, I ran a variety of scans, but the results are mostly from my "Bullish EMA - Mid-Range SCTR" scan, which nearly always gives me a lot of results. Today was no exception. I had 82 results! My other scans just weren't returning the set-ups I... READ MORE
Editor's Note: This article was originally published in John Murphy's Market Message on Wednesday, September 11th at 5:14pm ET. Smaller stocks were the stars of today's stock action. Previous messages have noted signs of improvement in the group which has lagged behind large... READ MORE
On Thursday SPY hit an all-time intraday high, but it was not confirmed by some of our internal indicators. In particular I am referring to the *Golden Cross and **Silver Cross Indexes, both of which are well below their levels when the market made its last all-time high in July.... READ MORE
I've written before about RSI and the difference between "good" overbought and "bad" overbought. In the future, we may see the bond prices of these past few weeks used as examples of how to interpret extreme overbought conditions. A review of the stock-to-bond ratio... READ MORE
On the weekly Relative Rotation Graph for US sectors, the Financial sector is positioned just inside the lagging quadrant, very close to the benchmark (center of the chart). It arrived here after a nearly vertical drop from the improving quadrant after failing to rotate into leading. During the last five... READ MORE
Market Recap for Thursday, September 12, 2019 Apparently we're back in the "feel good" portion of the trade war as President Trump announced on Thursday that there would be a tariff delay, providing a "gesture of good will". Accordingly, global markets have rallied and... READ MORE
Stocks surged the last 12 days with small-caps leading the way higher. The Russell 2000 iShares (IWM) is up 6.8% and the S&P 500 SPDR (SPY) is up 4.6%. Even though small-caps are leading short-term, they are still lagging on the three and six month timeframes.... READ MORE
Today, I ran the WealthWise Women "Pink Line" scan, which uses the 50-SMA and a Chandelier Exit to determine entries and exits. Many times, these stocks will have "popped" on the day I get the results for this scan, so these all did have big moves... READ MORE
I'm often asked about how technical indicators work across different time frames. The short answer is "Yes, they work." The longer answer, which explains how you need to use the toolkit differently depending on your time frame, follows. Many investors have a tendency to lock themselves... READ MORE
On the Relative Rotation Graph for technology stocks, LRCX stands out, with its relatively long tail and its push into the leading quadrant at a strong RRG-Heading. Such a rotation is more than enough reason to open up a regular chart for further investigation. The chart above shows LRCX on... READ MORE
Market Recap for Wednesday, September 11, 2019 On the 18th anniversary of 9/11, it was somewhat ironic that Boeing (BA, +3.51%) led the Dow Jones back above 27,000 and within 1% of its all-time high. Apple (AAPL, +3.05%) also performed quite well, with both stocks breaking... READ MORE
STOCK INDEXES GAIN MORE GROUND... The stock upturn that started last week when major stock indexes cleared their August trading range and 50-day averages gained momentum today. All three major indexes hit the highest level in more than a month. Chart 1 shows the Dow Industrials gaining 227 points (+0.... READ MORE
This week's action in the markets is pointing to a shift in money flows out of high multiple Technology stocks and into recently down-and-out Small Caps, Financials and Cyclicals. While it's too early to determine if the shift will remain in place, in the near-term we... READ MORE
TEN-YEAR TREASURY YIELD IS TESTING MAJOR SUPPORT...Bond yields have been falling all over the world since the end of last year. Several foreign government bond yields have fallen deeply into negative territory and have helped pull Treasury yields lower. The 30-Year Treasury Yield recently fell to a new record... READ MORE
Market Recap for Tuesday, September 10, 2019 We once again finished in bifurcated fashion on Tuesday with the small cap Russell 2000 ($RUT, +1.28%) and the Dow Jones ($INDU, +0.28%) leading the action, while the S&P 500 ($SPX, +0.03%) and the NASDAQ ($COMPQ, -0.04%... READ MORE