Editor's Note: This article was originally published in John Murphy's Market Message on Friday, March 15th at 2:58pm ET. Just a week after slipping below their 200-day averages, the Nasdaq Composite Index in Chart 1 and the S&P 500 in Chart 2 appear... READ MORE
I have a chart at the bottom of this article that will explain my moving out of the bear market camp. Yes, it is delayed, but, as I explained before the December crash, I'd rather miss a bottom and rally than be hanging on for dear life during... READ MORE
At the end of last week I was looking forward to some more selling to extend the decline that had started from the March 4 top. But no. Price rebounded off last Friday's low, eventually setting a new high for the rally off the December lows. However, on... READ MORE
The S&P is pretty much at the same level it was back in October of last year. However, it still remains well below its all-time high of 2939, which was also achieved in October of last year. Yet there are a number of stocks at their all-time highs,... READ MORE
NASDAQ AND S&P 500 HAVE CLEARED THEIR NOVEMBER HIGH... Just a week after slipping below their 200-day averages, the Nasdaq Composite Index in Chart 1 and the S&P 500 in Chart 2 appear to be ending the week above their November highs. That's the... READ MORE
Anytime I hear a successful, well-respected figure mention the importance of routines, my ears perk up. I firmly believe that routines (and the discipline to stick to them) are the secret to success, from investing to sports to business to music – you name it. When I hear that same opinion... READ MORE
* 20-day Holds above 200-day for S&P 500 * Weekly RSI Holds above 50. * Large-caps Lead Index Breadth. * Tech, Utilities and REITs Lead Sector Breadth. * The Dreaded Shakeout (VRTX). * Consider Position Sizing (SCWX). * Consider Profit Targets (PYPL). * ChartList Updates. ... 20-day Holds above 200-day ... The S&P 500 sneezed last... READ MORE
Market Recap for Thursday, March 14, 2019 Thursday was a day of rest and bifurcated action. The Dow Jones gained ground, albeit a rather miniscule 7 points, but the other major indices fell. The Russell 2000, NASDAQ and S&P 500 dropped 0.40%, 0.16%, and 0.09%... READ MORE
The Relative Rotation Graph shows the FAANG stocks against $NDX on a daily basis. The strong move of GOOG is evident and tracks the recent break of resistance. Out of these five stocks, four are at the right-hand side of the graph, indicating a relative uptrend against the Nasdaq 100... READ MORE
Market Recap for Wednesday, March 13, 2019 It was another strong day on Wall Street. All 11 sectors moved higher for the second time this week. Industrials (XLI, +0.88%) represent the only sector to have posted a daily loss this week. The other 10 sectors have shown gains all... READ MORE
MindTree Limited's stock price ended with gains of Rs. 23.20 (+2.84%) in Wednesday's session on March 14, 2019. This price move appears very important from the technical perspective, as it has thrown up several signals that point towards MINDTREE.IN inching higher over the... READ MORE
We have a new signal to add to the DecisionPoint Scoreboards, as the OEX triggered a Long-Term BUY signal on Monday. All of the large-cap Scoreboard indexes are now on Trend Model BUY signals in three timeframes. Additionally, we acquired two new BUY signals on Oil and Bonds, which I&... READ MORE
Diodes (DIOD), a semiconductor stock, is returning to the trend mean and this could provide a bullish setup to take part in the long-term uptrend. The chart below shows DIOD with a breakout and surge to new highs in February. Note that the stock also recorded new highs in autumn... READ MORE
Market Recap for Tuesday, March 12, 2019 Boeing (BA, -6.15%) was once again a major drag on the Dow Jones as that index ended the session in negative territory (-0.38%), while our other indices were positive. The NASDAQ (+0.44%) was the best performing index as 10 of... READ MORE
I’ll never forget the first time I did a simulated engine cutout at altitude. I was up in the air with my instructor, preparing to do some maneuvers, when he unexpectedly reached over and pulled out the throttle. The plane lurched forward, rapidly losing altitude, while my instructor turned... READ MORE
* Adjusted vs. Unadjusted Prices * Bonds Reflect the Fine Current Balance Between Inflationary and Deflationary Forces Adjusted vs. Unadjusted Prices Chart 1 shows that the iShares 20-year Trust ETF, the TLT, has been in a trading range since late 2014. Currently, the price is above its 12-month MA and the long-term... READ MORE
Market Recap for Monday, March 11, 2019 It never hurts to have Apple, Inc. (AAPL, +3.46%) breakout and that's what happened on Monday. It not only lifted the technology sector (XLK, +2.15%), but it provided a spark to our major indices as we experienced a "... READ MORE
In August of 2018 we studied the Residential Construction industry group (click here to view). This group was very weak throughout 2018. After a sharp January decline a long period of Redistribution set in. Rising interest rates during the year became a headwind for the group. In September, the redistribution... READ MORE
TECHNOLOGY SPDR HOLDS ITS 200-DAY LINE ... Stocks are off to a strong start for the week. All stock sectors are in the green today led by technology, energy, communications, financials, and cyclicals. All stocks sectors are also in the green with the technology-dominated Nasdaq in the lead. The Dow Industrials... READ MORE
The Indian markets saw a strong start to the week as the headline index ended with a robust gain of 132.65 points (+1.20%). With this move, the index has once again begun to attempt a breakout. This being said, over the past several weeks, the market breadth has... READ MORE
Seagate Technology was one of the weakest tech stocks in 2018 as it fell around 40% from the April high to the October low. Things appear to be turning about here in 2019 as stock finds its footing and triggers two breakouts. The chart below shows STX with two lows... READ MORE
Market Recap for Friday, March 8, 2019 Friday started ugly. There's no way to sugar coat the worst jobs report in 18 months. Nonfarm payrolls fell way short of expectations, 20,000 actual vs. 175,000 consensus estimate. Slowing job growth was an excellent predictor of the last... READ MORE
HAPPY TENTH ANNIVERSARY... Today marks the tenth anniversary of the bull market in stocks that started on March 9, 2009. It's already the longest in history, and the first bull market to last ten years. According to the Wall Street Journal, the S&P 500 has gained... READ MORE
The past week fared better than the one prior as the market added more to its gains. A major portion of the weekly gains was posted in the first half, while the last two sessions were spent amid consolidation. In a 4-day week, the headline index NIFTY50 ended with weekly... READ MORE
It took over two weeks, but the market top we've been looking for finally materialized. Price broke down through a rising bottoms line that goes back to the beginning of January. Also violated was the bottom of the trading range that has lasted over two weeks. At very... READ MORE
CONSUMER DISCRETIONARY SPDR IS BACK BELOW ITS 200-DAY AVERAGE... As of today, the Nasdaq Composite Index and the S&P 500 are trading back below their 200-day averages. That leaves only the Dow Industrials still above that long-term support line. A number of sector ETFs have either failed a... READ MORE
I developed this method primarily for candle pattern identification when I wrote my book, Candlestick Charting Explained (the book was first published in 1992 and now is in its third edition). The reliability concept equally applies to any type of pattern, including the many chart patterns widely used in technical... READ MORE
* The First Pullback of the Year. * A Big Drawn-out Range. * Index Breadth Table Update. * Sector Table Update. * Finance Fails below November High. * Retail and Banks Get Pummeled. * A Bullish Continuation for Bonds. * ChartList Updates. ... The First Pullback of the Year ... The S&P 500 fell the last four days... READ MORE
Market Recap for Thursday, March 7, 2019 Selling in U.S. equities continued for a fourth consecutive session as this is easily the most difficult period in 2019 for the equity bulls. The first technical breakdown occurred on daily charts as all of our major indices closed beneath their respective... READ MORE
* Dollar Diffusion Gives a Buy Signal * Differential Interest Rates Turn Bullish for the Dollar * $NYA and $COMPQ Drop Below Their 200-Day MAs One would think that a record trade deficit would be bearish for the dollar. However, the market does not agree, as the Invesco Bullish Dollar ETF (UUP) just... READ MORE
GLOBAL STOCKS TURN DOWN FROM OVERBOUGHT TERRITORY... Several of the writers on this site have been pointing out that the strong 2019 stock rally had become over-extended, and was up against formidable chart resistance at their November high. So it's not a big surprise to see some profit-taking... READ MORE
Market Recap for Wednesday, March 6, 2019 All of our major indices took a hit yesterday, including the small cap Russell 2000 ($RUT), which once again lagged badly and dropped another 2.01%. The RUT was easily the worst performer as the Dow Jones, S&P 500 and NASDAQ... READ MORE
The above Relative Rotation Graph shows the daily rotation over the past 20-days for the Utilities and Industrials sectors. I have isolated the tails of these two sectors to be able to show them in more detail and highlight the opposite directions that they started moving in. When you bring... READ MORE
This will be fairly brief today, as I am in the process of moving to a new home and it's a bit crazy over here. It's important to note the new ST PMO BUY signal, which occurred on a PMO positive crossover on the SPX daily... READ MORE
Market Recap for Tuesday, March 5, 2019 Another weak start and the inability to finish well contributed to minor losses across our major indices on Tuesday. Relative weakness in the small cap Russell 2000 resulted in a 0.45% loss there, while our other major indices fell more modestly -... READ MORE
Tilray (TLRY) listed on the Nasdaq at $17 with an IPO in July and promptly surged above $300. The stock then worked its way below 100 over the next few months and managed to stabilize in the 65 to 80 zone this year. The chart below shows the Bollinger Bands... READ MORE
Sorry, I could not resist that title. Today's commentary will focus on the Alternative Harvest ETF (MJ) and six of its components. I am sure there are other cannabis-related names out there, but I would like to focus on the purer plays. For example, the Advisor Shares Vice... READ MORE
The new Long-Term Trend Model (LTTM) BUY signals triggered on the SPX yesterday (3/4) and on the NDX today (3/5). We are probably seeing these just in time for a pullback or correction ahead. The Dow seems to agree, as it generated a new ST PMO SELL signal.... READ MORE
* Strong Broadly-Based Rally * NYSE Declining Peaks and Troughs Still in Force * Several Short-Term Indicators Starting to Point South Strong Broadly-Based Rally The rally dating from Christmas Eve has been a powerful one, generating an approximate 20% gain from its low. It has also been broad, not only enabling the NYSE... READ MORE
KOHLS AND TARGET LEAD RETAILERS HIGHER ... Chart 1 shows Kohls (KSS) surging 7% to clear its 200-day average and trade at the highest level since November. Chart 2 shows Target (TGT) up nearly 5% and also trading at the highest level in three months. The broadline retailer is also trading... READ MORE