After a sharp decline the first half of November, the Utilities SPDR (XLU) firmed for two weeks and then surged above its first resistance level. Notice that upside volume also surged twice in the last six days. Broken support turns next resistance in the 35.75-36 area. Click this image... READ MORE
S&P 500 AND DOW SURGE INTO RESISTANCE ZONES... Link for todays video. Stocks caught a strong bid Thanksgiving week as the S&P 500 and the Dow Industrials surged back towards broken support. Despite some impressive gains since November 19th, resistance is at hand and the going... READ MORE
THIS IS WHY WE FOLLOW CHARTS ... We've been treated to a lot of bullish news on the housing sector over the last month. Builders broke ground on more homes during October. Residential construction rose last month at the highest rate in more than four years. Permits for new... READ MORE
ATVI Hits Momentum of Truth after Big Game Release. AKAM Fails to Partake in Market Surge. Plus ARUN, CHS, GOOG, KSS, MMM 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)... READ MORE
The markets started November in risk-off mode as stocks and the Euro moved sharply lower. Both became quite oversold mid month and the major index ETFs formed hammers on Friday, November 16th. These minor selling climaxes marked a short-term turning point as the markets devoured risk the following week. Stocks,... READ MORE
Hello Fellow ChartWatchers! With the market fluctuating significantly right now, the ability to spot trend changes early is critical. Here's an updated re-print of an article I wrote back in 2003 that is still very relevant almost 10 years later. It's about using our Scan Engine... READ MORE
On the weekly chart below, we can see that, after making a new, all-time high back in August of 2011, gold went into a correction/consolidation mode, ultimately forming a descending triangle. While this formation suggests lower prices (the flat line is the weakest), price broke up through the top... READ MORE
The stock market has always attracted a disproportionate number of exceptional intellectuals and uniquely independent souls. By their nature, they are reluctant to live by the lessons of others and tend to be rule breakers instead of rule keepers. In his book Trading Rules: Strategies for Success, William Eng talks... READ MORE
The Nikkei 225 ($NIKK) is getting a boost from weakness in the yen. Notice that the index broke resistance as the Yen Index ($XJY) broke support. The Nikkei benefits because a weaker Yen makes Japanese exports more competitive and this helps the overall economy. Click this image for a live... READ MORE
The Networking iShares (IGN) is showing some buying pressure with a flag breakout over the last four days. The ETF broke the September trendline in early November, pulled back with a flag and then broke the flag trendline. Notice that the price relative (IGN:SPY ratio) broke its trendline in... READ MORE
The Silver ETF moved sharply lower in October and then bounced with a rising wedge. The wedge is still rising, but broken support turns resistance in the 32.5 area. A wedge break would signal a continuation lower and target a move to next support in the 29 area. Click... READ MORE
The Rydex Cash Flow Ratio gives a view of sentiment extremes by using cumulative cash flow (CCFL) into Rydex mutual funds. It is calculated by dividing Money Market plus Bear Funds CCFL by Bull Funds plus Sector Funds CCFL. (To read more click here.) While the Ratio shows that Rydex... READ MORE
There is quite a bit of newsprint lately regarding the US "fiscal cliff"; and the impact of whether it goes through or not. Regardless or not of whether it is extended or not, we think it instructive to analyze the consumer discretionary stocks as they will be inordinately... READ MORE
All the recent talk has centered around the effect of a potential fiscal cliff. While we may or may not be subject to a fiscal cliff, each and every one of us has been subject to the recent technical cliff, especially the one since election day. Things have gone from... READ MORE
Stocks found a bid on Monday as the Consumer Staples SPDR (XLP) continued its bounce off the rising 200-day moving average. Notice that XLP hit this moving average on Wednesday, firmed on Thursday and bounced on Friday. Today's follow through confirms support in the 34 area. Click this... READ MORE
QQQ FOLLOWS THROUGH ON HAMMER... Link for todays video. Programming note: I will be taking some time off for Thanksgiving and be back on November 27th. Stocks surged on Monday with the Nasdaq 100 ETF (QQQ) and the Russell 2000 ETF (IWM) leading the charge. These two led the way... READ MORE
Programming note: I will be taking some time off for Thanksgiving and the next commentary will appear on November 27th. Stocks managed to firm on Friday with a number of ETFs forming hammer-like candlesticks. Hammers form with small bodies near the top of the high-low range. The open and close... READ MORE
All sectors are down over the last two months, but some are down less than others. Of the nine sector SPDRs, the Consumer Staples SPDR (XLP) and the Healthcare SPDR (XLV) are holding up the best. Relative strength in these two defensive sectors confirms that the market is currently in... READ MORE
Take-Two Interactive ($TTWO) is showing relative strength with a triangle break earlier this week and break above its October highs today. Notice that the StockCharts Technical Rank (SCTR) broke out just before the triangle break and surged above 70 this week. TTWO is part of the S&P SmallCap... READ MORE
HIGH-BETA STOCKS STILL SHOW RELATIVE WEAKNESS... Link for todays video. The Russell 2000 ($RUT) and Nasdaq remain laggards and continue to undermine the broader market. In general, the Russell 2000 represents small-cap stocks and the Nasdaq represents technology stocks. Smaller companies are more dependent on the domestic economy and tend... READ MORE
This phrase is most often heard in reference to lawmakers and bureaucrats in Washington, DC, but I think it’s an appropriate reflection of what many investors struggle with as well. As an investor, you’ll seldom be destroyed by outside forces. If you falter and lose your assets, more... READ MORE
The bulk of the evidence remains decidedly bearish. Even though stocks are oversold, the decline accelerated the last two weeks and we have yet to see any kind of selling climax or washout that would indicate a near-term bottom. We have also yet to see support in the major index... READ MORE
Even though Thursday's losses were small, stocks just can't seem to shake that selling feeling. The major index ETFs edged lower the small-caps again leading the way. The sectors were mixed with three up and six down. Gains and losses were also small though. The Finance... READ MORE
The Home Construction iShares (ITB) failed to hold its break above 21 and plunged over the last eight days. Volume expanded as the ETF broke the October lows. Notice that On Balance Volume (OBV) peaked a week ahead of the ETF and then moved to its lowest level since early... READ MORE
GOLD AND SILVER MINERS FALL BELOW CHART SUPPORT... Stocks tied to gold and silver had a bad week. Chart 1 shows the Market Vectors Gold Miners ETF (GDX) falling below its 200-day average and the support line drawn over its June high. That's bad chart action. Gold prices... READ MORE
Selling pressure continued on Wednesday as the major index ETFs fell over 1%. The S&P MidCap 400 SPDR (MDY) and Russell 2000 ETF (IWM) led the way with losses approaching 2%. All sectors were down with the Finance SPDR (XLF) and the Industrials SPDR (XLI) leading the way.... READ MORE
ALTR Firms At Support. ARO Bucks the Selling Pressure. Plus CAKE, CHKP, COST 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 it... READ MORE
The Silver Miners ETF (SIL) moved into a tight trading range in October and then broke support with a sharp decline the last four days. This move pushed prices below the lower Bollinger band as volatility expanded. Also notice that the ETF is now underperforming the Silver ETF (SLV). Click... READ MORE
FINANCE AND INDUSTRIALS SPDRS BREAK SUPPORT... Link for todays video. The Finance SPDR (XLF) and the Industrials SPDR (XLI) were holding up the best of the four offensive sectors, but these two broke support over the last few days. This indicates that selling pressure is spreading, not narrowing. Note that... READ MORE
Stocks continued to struggle as buyers found little reason to bottom pick on Tuesday. Stocks opened lower, surged in morning trade and then moved lower in the afternoon. The major index ETFs finished with small losses on the day. Seven of the nine sectors were lower with the Finance SPDR... READ MORE
The Nasdaq broke below the 200-day moving average with a gap down last week, and remains below this key level. This moving average and the small consolidation now turn into first resistance. Notice that RSI is almost at oversold levels (below 30). Click this image for a live chart... READ MORE
Stocks struggled on Tuesday with the major index ETFs finishing mixed. The Dow Industrials SPDR (DIA) edged higher, but the Russell 2000 ETF (IWM) and Nasdaq 100 ETF (QQQ) edged lower. Apple surged above 550 on the open, but closed below 445 as selling pressure hit. The market is wounded... READ MORE
CAT Forms Bear Flag after Breakdown. LXK Triangulates with Bearish Bias. Plus MKC, MMM, RTN, SYK, WOR 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 number of new 52-week lows surged above 90 for the NYSE and Nasdaq (combined). This compares to fewer than 50 new 52-week highs. Selling pressure is taking its toll the last few weeks. Of note, semiconductor powerhouse Intel (INTC) graced the new low list today. Click this image for... READ MORE
S&P 500 BECOMES OVERSOLD AND HITS 200-DAY... Link for todays video. Stocks are oversold and the S&P 500 is trading near its 200-day moving average. This is a recipe for an oversold bounce or a consolidation. Chart 1 shows the S&P 500 with support... READ MORE
It was a rough week for the stock market. The S&P 500 lost 2.43% and all sectors moved lower, even the defensive sectors. The Consumer Discretionary SPDR (XLY) and Technology SPDR (XLK) lost around 2.5%, while the Finance SPDR (XLF) fell over 3% and the Utilities... READ MORE
The intraday bullish engulfing scan was quite full around 12PM ET with over 200 stocks making the cut. Among them, Amgen (AMGN) formed a bullish engulfing near the mid October low and 38.2% retracement. The channel is still falling here with the upper trend line marking resistance at 87.... READ MORE
IWM AND SPY BREAKDOWN ON P&F CHARTS... Link for todays video. P&F charts provide unbiased trend information with three features: the pattern at work, the price objective and the trend lines. First, the pattern at work, if any, is listed at the top of each chart.... READ MORE
History matters because markets do indeed repeat themselves. John Kenneth Galbraith was interviewed in the PBS documentary, The Crash of 1929, and he observed that every 30 years or so we predictably have a major market correction because that seems to be the length of time it takes each generation... READ MORE
With three downgrades, the indicator summary turned negative for the first time since June. The summary was zero (neutral) the last two weeks. The sharp decline over the last two days was enough to tilt the balance towards the bears. Of note, the NYSE AD Volume Line broke support, the... READ MORE