Inevitably, there comes a time during the trading day or the trading week that I ask myself, “why am I doing this?” If you’ve already given this critical query serious thought before you encounter the questioning pit, any momentary uneasiness simply creates a brief pause that’s but a... READ MORE
With weakness throughout June, three indicators were downgraded to bearish in the indicator summary. It is a rather strange trio though. Net New Highs are considered bearish because NYSE Net New Highs plunged to their lowest reading in over a year. The VIX surged above 20% to show the most... READ MORE
Stocks were hit hard with the major index ETFs falling over 2% on the day. Even though this decline looks massive on a short-term basis, it is relatively small on a six to twelve month timeframe. All sectors were down with the defensive sectors leading the way lower, which is... READ MORE
The stock market is down sharply on Thursday, but there are a few green shoots on the sector Market Carpet. In the technology sector, notice that Redhat (RHT), Citrix (CTXS), JDS Uniphase and Juniper (JNPR) are up so far today. In fact, the technology sector is holding up relatively well... READ MORE
GOLD PLUNGES ... Two factors are causing the price of gold to tumble today. One is a sharp jump in the U.S. Dollar. The other, and probably more important reason, is the jump in U.S. bond yields after yesterday's Fed announcement that it was ready to start... READ MORE
Stocks tried to front run the Fed and got burned when Bernanke stuck to his guns on tapering. The S&P 500 ETF (SPY) was up over 3% in the run up to the Fed meeting and fell 1.38% on Wednesday. The sharp decline in stocks warranted a... READ MORE
Bearish Continuation Patterns Takes Shape for CB. FCX Cannot Hold a Bid. Plus JBHT, MAR and VRSN. 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 to think... READ MORE
The Corn ETN (CORN) is leading a surge in soft commodities. The chart below shows the ETN breaking out in late May and then falling back in June with a wedge. The wedge low held above the prior lows and the ETN broke wedge resistance with a strong move the... READ MORE
TREASURY BOND ETF HITS MOMENT-OF-TRUTH ... Link for today's video. In an effort to distance myself one Fed meeting and reactionary analysis, today's commentary will come before the Fed meeting and focus on price action. Trying to second-guess a Fed moment and the market's immediate... READ MORE
Stocks extended their upswing as the major index ETFs broke channel resistance. Small-caps led this week's advanced as the IWM:SPY ratio moved to its highest level of the month. Relative strength in small caps suggests a good appetite for risk at the moment. There is a lot... READ MORE
MORE SEMICONDUCTOR LEADERS ... My June 4 message showed the Market Vectors Semiconductor ETF (SMH) trading at a new 12-year high, and three semiconductor leaders which included Intel (INTC), KLA Tencor (KLAC) , and Texas Instruments (TXN). That group continues to lead the technology sector higher. Three more semiconductor leaders are shown... READ MORE
The Agribusiness ETF (MOO) broke channel resistance with a surge above 55, but fell back rather sharply over the last four weeks. The five week trend is down as a falling wedge takes shape. Even though the ETF firmed the last five days, it remains short of a trend reversing... READ MORE
Stocks surged on the open on Monday, fell back in the afternoon and then popped near the close. Intraday price action was not that impressive because there was really no follow through to the morning surge. Even though the major index ETFs finished with modest gains on the day, they... READ MORE
ADI Surges with Two Bullish Patterns at Work. ETFC Forms Bullish Consolidation after Big Surge. Plus FDX, HON, NBR, PG, TSO 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
Netflix, which is no stranger to gaps, gapped up in April held this gap throughout May. A falling wedge pushed the stock back toward the gap zone in June, but this wedge ended with a gap on good volume. The breakout-gap is bullish as long as it holds. Click this... READ MORE
STOCKS FRONT RUN THE FED AS IWM CHALLENGES FLAG TREND LINE... Link for today's video. Stocks got off to a strong start on Monday with the major index ETFs surging over 1% in early trading. Note that the Fed meets on Wednesday and will make its policy statement... READ MORE
Trading has sure been choppy the last four weeks, and it could get even choppier as the Fed meets this week. Ugh. The talk of Fed tapering began 4-5 weeks ago and this triggered an adjustment in the markets. The PerfChart below shows the S&P 500, the 10-year... READ MORE
The biggest threat to the global stock rally is coming from emerging markets. The weekly bars in the chart below show Emerging Market iShares (EEM) falling to the lowest level in nine months. It has also broken a support line extending back to the fourth quarter of 2011. Emerging market... READ MORE
The US Dollar has declined rather sharply over the past 2-weeks, which given the scope of the decline - has likely pushed it into a bear market. The reasons for this could be myriad; or simply that the Fed will continue upon the bond-buying campaign far longer than the consensus... READ MORE
Volatility plays a role in any market environment, but I always look to key areas of resistance on the VIX to help identify tradable bottoms on the S&P 500. In my last article on June 1st, I suggested that the 18-19 resistance on the VIX could prove to... READ MORE
The Tokyo Nikkei Average has been in another free-fall since the top in May, falling -22%. Before we get to the long-term chart, let's look at the one-year daily bar chart. The average rose +82% in just six months in a parabolic move that was doomed from the... READ MORE
The S&P 500 got a two day bounce last week and a nice surge on Thursday, but fell back Friday as it met resistance at 1650, which is now the short-term level to beat. Overall, notice that the index formed a falling flag type correction the last four... READ MORE
Hello Fellow ChartWatchers! GalleryView has been a often overlooked gem here at StockCharts going all the way back to the beginning of the website. Today we're pleased to announce an important new feature for GalleryView but first, I wanted to go over exactly what GalleryView is and how... READ MORE
The iShares Emerging Market Bond ETF (EMB) formed a double top from December to May and confirmed this pattern with a support break in late May. Notice that the ETF fell over 8% as rumors of Fed tapering hit the market. This decline reflects some serious chaos and surely rattled... READ MORE
I actually wear my office during the trading hours. “All work is social,” claims Larry Prusak, director of IBM’s research labs, and that is how I see my work as a stock market trader. My downtown office offers face time with the markets in a manner that working at... READ MORE
TREASURIES BOUNCE AS IEF CONFIRMS OUTSIDE REVERSAL... Link for today's video. Treasury bonds are bouncing and yields are rising on Friday. This is interesting because Treasuries appeared to break down on Monday, but recovered and rebounded with a strong bounce the last two days. Chart 1 shows the... READ MORE
There is still no change in the indicator summary. Stocks corrected last four weeks and this correction weighed on the NYSE the most. The NYSE AD Line fell, but remains in an uptrend overall. NYSE Net New Highs turned negative for the first time since November. While I am concerned... READ MORE
Stocks caught a bid on Thursday as the major index ETFs advanced over 1% on the day. A better-than-expected retail sales report put stocks on a positive footing from the start and they extended their advance throughout the day. There is also talk that the Fed will start jawboning down... READ MORE
The Homebuilders SPDR (XHB) is finding support with a bounce last week and small gain in early trading on Thursday. Notice that the ETF is trading near the November trend line and the 61.80% retracement. These two items suggest support is at hand. A break above last week'... READ MORE
JAPANESE STOCKS PLUNGE AS YEN BOUNCES ... Between last November and mid-May, a plunging yen pushed Japanese stocks 80% higher. Over the last three weeks, however, the short yen/ long Nikkei trade has reversed. Chart 1 shows the upturn in the Japanese yen in mid-May coinciding exactly with a peak in... READ MORE
ANF Forms Island Reversal. BHI Gaps Down and Tests Support. Plus FL, IBM, MMM, NEM, URBN 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 to think for... READ MORE
The Asian rout continues as the Shanghai Composite ($SSEC) caught up with a 2.83% decline on Thursday. The Hang Seng Index ($HSI) fell another 2.3% and the Nikkei 225 ($NIKK) plunged over 6%. European stocks are also down with the major indices falling around 1% in early trading... READ MORE
The 7-10 year T-Bond ETF (IEF) opened weak and closed strong on Tuesday to forge an outside reversal day or bullish engulfing pattern. This is potentially positive, but we have yet to see follow through with a break above first resistance at 105. Also notice that the Commodity Channel Index... READ MORE
S&P 500 OUTPERFORMS ITS PEERS IN ASIA AND EUROPE ... Link for today's video. There is a lot of talk lately that the US is not an island and weakness in emerging markets will eventually weigh on US stocks. US stocks, for the moment, are holding up... READ MORE
Stocks opened weak, got a pretty nice bounce and then turned lower to close weak. The major index ETFs were down around 1%. All sectors were down with the Energy SPDR (XLE) and Basic Materials SPDR (XLB) leading the way. Weakness in these two can be attributed to declines in... READ MORE
With a bounce after the open on Tuesday, the Regional Bank SPDR (KRE) is showing resilience as it challenges flag resistance. Notice how the ETF surged from mid April to mid May and then corrected with the falling zigzag (flag). A breakout at 33.25 would signal a continuation higher.... READ MORE
US stocks are actually looking vulnerable on the charts as the major index ETFs stall near resistance levels and key retracements. Also note that Asian stocks were weak on Tuesday with the Shanghai Composite ($SSEC), Hang Seng Index ($HSI) and Nikkei 225 ($NIKK) falling over 1%. Emerging stock markets were... READ MORE
AAPL Battles Resistance after Announcements. AEO Forms Bear Flag. Plus COST, FCX, MHK, VLO 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 to think for ourselves when... READ MORE
StockCharts Technical Rank (SCTR) for the S&P SmallCap 600 ($SML) ranks 600 small-cap stocks according to their technical strength. Chartists can also sort this table by change to find the bigger (relative) movers. Cbeyond (CBEY), B&G Foods (BGS) and Tangoe Inc (TNGO) are leading today with... READ MORE
RETAIL SPDR BREAKS FLAG TREND LINE WITH GAP... Link for today's video. It is a big week for retail stocks because retail sales for May will be reported on Thursday. The Retail SPDR (XRT) best represents the retail group and retailers are important to the consumer discretionary sector.... READ MORE