The S&P 500 surged on Monday morning with a move from 2110 to 2130. That was it for the buying pressure. The index peaked late Morning on Monday and fell the next three and a half days. $SPX closed near 2102.5 on Thursday and is down slightly... READ MORE
In today's DecisionPoint Alert, I warned of very bearish readings appearing on our shorter-term indicators. When these indicators get very elevated readings in either direction, it is an attention getter. Climactic readings, as we call them at DP, can be an indication of an "exhaustion" of... READ MORE
IPGP resides in the semiconductor industry and is pulling back with this industry group as June has proven to be a very rough month for this space. I'm expecting that to soon change and IPGP could be a direct beneficiary. But first, there's some technical business... READ MORE
Most market analysts will tell you that market corrections are times when the market takes a rest and declines for more than just a few days. Ten percent has also been bandied about for years as to what makes a good correction, or at least what generally qualifies as a... READ MORE
Stocks opened weak and closed with with the S&P 500 losing around .74% on the day. Selling pressure was contained, but across the board as all sectors declined and most industry-group ETFs lost ground. The Materials SPDR (XLB) led the sectors lower with a 1.27% decline. It... READ MORE
* Pring Dow Diffusion indicator triggers a tentative buy signal. * Net new high bond indicator is deeply oversold. * Aussie and Canadian dollars experience bullish KST. US Stocks Action this week has been somewhat disappointing since several averages and sectors experienced reversal characteristics on Tuesday. This suggests that, over the next few... READ MORE
TRANSPORTS AND UTILITIES ARE 2015 LAGGARDS... Chart 1 shows the divergence by the Dow Industrials (which are close to a new record) and the Dow Transports and Utilities which are both in downtrends. Since the start of the year, the industrials have gained 1.6%, while the transports and utilities... READ MORE
StockCharts users have access to the McClellan Oscillators and Summation Indices for the nine sector SDDRs and the major stock indices. Before showing how to find these symbols, let's take a look at the McClellan Oscillator and McClellan Summation Index for the Consumer Discretionary SPDR (XLY). The chart... READ MORE
Stocks meandered on Tuesday with the major index ETFs finishing mixed. The Nasdaq 100 Equal-Weight ETF (QQEW) and Equal-Weight S&P 500 ETF (RSP) edged lower, while the Nasdaq 100 ETF (QQQ) and S&P 500 SPDR (SPY) edged higher. The sectors were also mixed with weakness in... READ MORE
Did I not mention in my previous article "Picture Perfect: Ambarella" that AMBA was in a "jinx" situation or possible sentiment trap? It appears the cash cow is dying. Yes, it was up over 8% today, but it was down nearly 20% yesterday. Carl and I... READ MORE
SMALL-CAPS, MID-CAPS AND NASDAQ SHOW LEADERSHIP... Note that the charts below are part of the webinar, which was at 1PM on Tuesday, June 23rd (Click here for recording). It is hard to argue against the bulls with the Russell 2000 iShares (IWM), S&P MidCap SPDR (MDY) and Nasdaq... READ MORE
Prices behave differently when a trend begins. Each price bar tells a story during the sideways action of an Accumulation Range and each bar tells a different story when the trend starts. A big, long trend is born inside the inconspicuousness of an Accumulation area. The keen eyed Wyckoffian is... READ MORE
After testing 2075 price support for about the sixth time a week ago, the S&P 500 has rallied close to 2.5% since that low. While all nine sectors have participated in this rally, energy has been the laggard while consumer stocks, especially staples, have led this rally.... READ MORE
Stocks surged out of the gate and then settled into a trading range the rest of the day. The gains were modest, but they held with QQQ and IWM leading the way. Note that the Nasdaq and Russell 2000 both hit new highs again on Monday. It is hard to... READ MORE
Vertex (VRTX) is part of the healthcare sector, which is one of the strongest sectors in the market. It is also part of the biotech industry, which is one of the strongest industry groups in the healthcare sector. This puts strong sector and industry group performance in its favor. On... READ MORE
SLICING AND DICING THE SECTORS WITH UNIQUE INDICATORS... Link for today's video.. As promised, I am showing a breadth and trend table for the nine sectors today. Using the unique indicators available at StockCharts, chartists can slice and dice a sector by analyzing sector-specific breadth indicators, the cap-weighted... READ MORE
There sure was a lot of noise last week, but this noise was not enough to affect small-caps and techs. The Russell 2000 and Nasdaq hit new highs and this is bullish for the market overall. Despite a mixed week, the Russell 2000 iShares (IWM) and the Nasdaq 100 Equal-Weight... READ MORE
What a week! First, on Wednesday the Fed made its interest rate announcement, making it clear they are going to leave all options open, including the pace at which rates are changed in the future. This gives them the maximum flexibility to make changes relative to current economic conditions without... READ MORE
We received the following question following ourDecisionPoint LIVEwebinar: Currently for the S&P500, all three PMO signals (short-, medium-, and long-term) are in bearish mode. Have there been previous times in the past where the market turned up from here rather than have a sharp correction first? In other... READ MORE
Hello Fellow ChartWatchers! You know, sometimes we overthink things. Actually, in the realm of Technical Analysis, overthinking things is an epidemic! People are constantly asking us for more indicators, more tools, more features more data - more, more, more! "If I just have this one additional thing, then I... READ MORE
Oil surged in early June and looked poised to break flag resistance. A little follow through last week was all that was needed. US stocks did their part as the Russell 2000 and Nasdaq hit new highs. The Dollar did its part as the US Dollar Index fell 2.8%... READ MORE
IWM AND XLI STRATEGY FOLLOW UP... Link for today's video.. Today I am going to step back and focus a little on strategy. The first part will show a basic chart strategy to identify the bigger trend and find pullbacks within this chart. The second part will show... READ MORE
I’ve spent many years of digging into my own trading journal, looking for lessons, rules, principles and insights to improve my investing. I continue to do so, not just to find fodder for this blog but to provide supporting documentation to lend more weight to the teachings of other... READ MORE
Stocks surged with the major index ETFs gaining over 1% on the day. IWM and QQQ led with 1.5% advances. DIA and SPY gained around 1%. Eight of the nine sectors were up with solid gains coming from consumer discretionary, finance and healthcare. Energy lagged as oil remained in... READ MORE
I have received numerous blog comments, emails, etc. asking me to publish the scan that I used to find Ambarella back in February. First, as far as making this stock pick, I told one subscriber that it's nice to get lucky on top of being smart! However, this... READ MORE
SMALL CAPS HIT NEW RECORD HIGHS... Let's start off today where we started yesterday -- with small cap stocks which continue to lead the market higher. Charts 1 and 2 show the S&P 600 and the Russell 2000 Small Cap Indexes hitting new record highs. As... READ MORE
In last Tuesday’s (6/15) webinar with Arthur Hill I presented a Relative Rotation Graph based on size indices and how this can be used to focus attention to a specific part of the broader market. You can re-play the recording of this webinar here. One of the most... READ MORE
The Federal Reserve on Wednesday suggested the pace on increasing interest rates would be slower than previously thought. There was renewed interest in treasuries and the 10 year treasury yield dropping nearly 10 basis points in the two hours following the Fed policy statement. Those remarks by Fed Chair Janet... READ MORE
Stocks were mixed on Wednesday with QQQ and SPY posting small gains, and IWM and MDY posting small losses. The sectors were mixed with small gains coming in consumer discretionary, materials and consumer staples. The beaten down utilities sector got the biggest bounce, but it remains in a downtrend overall.... READ MORE
STOCKS EXPERIENCE MODEST BOUNCE... Large cap stocks experienced a modest bounce on today's Fed statement about raising rates very gradually. Chart 1 shows the S&P 500 gaining four points (+0.20%) and ending just below its 50-day average. Small caps, which had been testing spring highs,... READ MORE
SMALL CAP INDEXES TEST OLD HIGHS... Small cap stocks remain the strongest part of the stock market, and continue to lead the rest of the market higher. Charts 1 and 2 show the S&P 600 Small Cap Index ($SML) and the Russell 2000 Small Cap Index (RUT) in... READ MORE
Many of us remember the financial crisis in 2008 when Lehman collapsed and the credit markets froze. The S&P 500 plunged some 40% and the 20+ YR T-Bond ETF (TLT) surged over 30% in a flight to quality. This was a true financial crisis and the markets reflected... READ MORE
June has been anything but dull for the stock market, on a short-term basis at least. SPY sports three swings of at least 2% over the last ten days. After gapping down on Monday, stocks firmed and rallied from Monday morning to Tuesday afternoon. Tuesday's bounce was enough... READ MORE
Just like with fundamental analysis, technical analysis has two sides - those who look at the glass as half full and those who view it as half empty. The current technical state of the Dow Jones U.S. Specialty Consumer Services index ($DJUSCS) is certainly up for debate. There are... READ MORE
* HYG/IEF bond confidence indicator may be peaking. * Cyclicals and financials have the ability to break to the upside. * Spider Metal and Mining and Materials less favored. US Equities The NYSE Composite ($NYA) continues to trade in a narrow range frustrating bull and bear alike. The 200-day MA often acts... READ MORE
News has been picking up on a once little known company, Ambarella, Inc. (AMBA). For those unfamiliar, AMBA is a leading developer of low-power, high-definition (HD) and Ultra HD video compression and image processing solutions. The company’s products are used in a variety of professional and consumer applications including... READ MORE
RRG FAVORS SMALL AND MID CAPS... Note that Julius de Kempenaer and Arthur Hill (moi) recorded a webinar on Tuesday, June 16th. The following charts and commentary come from this webinar. More charts and detailed explanations can be found on webinar recording. (from Julius de Kempenaer) Chart 1 shows a... READ MORE
Okay, first let me preface this article with the notion that I don't short a bull market. I really try to trade with the trend. Going against the primary trend is similar to swimming against the current - it's not easy to make any head way.... READ MORE
Over the decades there are a few things that have attached themselves to technical analysis that bother me. Actually, they really don't bother me; what bothers me is when I hear someone talk about what great tools they are. It is very clear to me then, that they... READ MORE
Stocks opened sharply lower, bounced a bit and then traded flat the rest of the day. The major index ETFs spent the entire day in negative territory and closed with modest losses. Dow futures are down around 100 points at 4:30AM ET on reports that Greece will not submit... READ MORE