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MACD TURNS NEGATIVE FOR S&P 500 -- MARKING NEXT SUPPORT FOR THE RUSSELL 2000 AND NASDAQ 100 -- TRUCKING AND RAIL STOCKS WEIGH ON INDUSTRIALS SECTOR -- DJ RAILROAD INDEX BREAKS FLAG SUPPORT -- DIRECTIONAL INDICATORS CROSS FOR DOLLAR INDEX
by John Murphy,
Chief Technical Analyst, StockCharts.com
MACD TURNS NEGATIVE FOR S&P 500... Link for todays video. The Fed came and went without much fanfare on Wednesday. In fact, this was one of the most subdued Fed days that I have seen in a while. Stocks were flat heading into the announcement and flat heading...
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Nasdaq Tests 200-day Moving Average
by Arthur Hill,
Chief Technical Strategist, TrendInvestorPro.com
With a sharp decline the last five weeks, the Nasdaq is poised to test its rising 200-day moving average. The red line is the 200-day and this key average was last tested in early June. Note that the index is underperforming the S&P 500 as the price relative...
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IGN Hits Support Zone - UUP Challenges Resistance
by Arthur Hill,
Chief Technical Strategist, TrendInvestorPro.com
Stocks were hit with selling pressure on Tuesday, but there were some pockets of strength in the technology sector. The Dow Industrials SPDR (DIA) led the way lower with a 1.77% decline. The Russell 2000 ETF (IWM) held up the best with a .50% decline. Go figure. Materials stocks...
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MARKET INDEXES SELL OFF AS 50-DAY AVERAGES ARE BROKEN -- NEXT SUPPORT LIES AT 200-DAY LINES -- COMMODITIES SELL OFF WITH STOCKS AS CRUDE FALLS TO A THREE-MONTH LOW -- TREASURY BONDS BOUNCE AS STOCKS SELL OFF
by John Murphy,
Chief Technical Analyst, StockCharts.com
DOW BREAKS 50-DAY AVERAGE... The Dow Industrials fell more than 200 points today to turn the market's short-term trend lower. Chart 1 shows the Dow falling well below its 50-day average. The next level of support to watch is the line drawn over its July peak and its...
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Transports Buck the Selling Pressure with Gain
by Arthur Hill,
Chief Technical Strategist, TrendInvestorPro.com
The image below comes from a Major Indices Market Carpet. The Dow Industrials is getting hit hard, but the Dow Transports is holding up rather well thanks for strength in UPS. The Nasdaq 100 ($NDX) is also holding up rather well with gains coming from Yahoo and Virgin Media.
Click...
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SPY Gets Oversold Bounce as TLT Hits Resistance
by Arthur Hill,
Chief Technical Strategist, TrendInvestorPro.com
Stocks meandered around on Monday as trading turned quite mixed. The Nasdaq 100 ETF (QQQ) edged higher, while the S&P MidCap 400 SPDR (MDY) edged lower. Apple caught a bid ahead of its earnings report on Thursday. The sectors were also mixed with the Basic Materials SPDR (XLB)...
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Charts of Interest: COH, DAL, HAS, NKE, TSN
by Arthur Hill,
Chief Technical Strategist, TrendInvestorPro.com
Careful out there. It is earnings season.
CAH Forms Bear Flag after Breakdown
DAL Forms Pennant after Breakout.
Plus HAS, NKE, TSN
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)...
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UTILITIES SECTOR PERKS UP IN OCTOBER -- CLOTHING AND ACCESSORIES INDEX WEIGHS ON XLY -- RETAIL APPAREL INDEX UNDERPERFORMS BROADER MARKET -- CRUDE FAILS AT BROKEN SUPPORT -- OIL SERVICE ETF HITS RESISTANCE AT KEY RETRACEMENT
by John Murphy,
Chief Technical Analyst, StockCharts.com
UTILITIES SECTOR PERKS UP IN OCTOBER... Link for todays video. October has been a rough month for the market so far, but the Utilities SPDR (XLU) is holding its own and starting to outperform again. PerfChart 1 shows three offensive sectors (XLF, XLI, XLY) and three defensive sectors (XLU, XLP,...
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XLY and SPY Poised for Big Support Tests
by Arthur Hill,
Chief Technical Strategist, TrendInvestorPro.com
It was another rough week for the stock market, especially tech stocks. Even though the S&P 500 ETF (SPY) remains within a consolidation pattern since mid September, the Nasdaq 100 ETF (QQQ) is in a clear downtrend with a 6+ percent decline from its mid September high. Relative...
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Announcing a Significant Expansion to StockCharts University
Hello Fellow ChartWatchers!
Long-time ChartWatchers know that from the very beginning, StockCharts.com has been about the synergy of three things: Great online finanical analysis tools, Great educational content, and Great market commentary that brings it all together. Today, I'm happy to announce a significant expansion to our...
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Travelers ($TRV) Leads Insurance Group Higher
by John Murphy,
Chief Technical Analyst, StockCharts.com
Insurance stocks are attracting a lot of new money into a reviving financial sector. Chart 1 shows the Dow Jones US Property & Casualty Insurance Index surging to the highest level in five years. Its relative strength line (below chart) is starting to break out to the upside. The main...
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Financials and Technology Stocks Diverging
by Tom Bowley,
Chief Market Strategist, EarningsBeats.com
October has been a very strange month thus far. While most of our sectors are trading close to the flat line for the month, financials and technology are heading in opposite directions. I can't recall a two week period where the returns of these two influential sectors diverged...
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Lessons from the 1987 Crash
by Carl Swenlin,
President and Founder, DecisionPoint.com
It has been 25 years since the 1987 Crash, and I thought it would be a good time review a few things that probably won't be covered elsewhere in the media. I may have covered these issues in the past, but a refresher can't hurt.
One...
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Technology Buyers Beware...
by Richard Rhodes,
Founder and President, Rhodes Capital Management and Rhodes Trading Group
Last's week's early market rally seemingly disavowed all the bad news; which is of course what this market has been doing since the summer. However, we may be premature - but we are certain the market is changing its stripes from focusing upon "benefits"...
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XLY and XLI Set Up Key Support Tests
by Arthur Hill,
Chief Technical Strategist, TrendInvestorPro.com
Weakness in the technology sector has been offset by strength in the finance sector since early September. This is why the S&P 500 is range bound the last five weeks and the Nasdaq is in a downtrend. With these two sectors cancelling each other out, chartists must turn...
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A Bearish MACD Crossover for OpenTable
by Arthur Hill,
Chief Technical Strategist, TrendInvestorPro.com
OpenTable (OPEN) shows signs of rolling over as a lower high takes shape and MACD moves below its signal line. Notice that OPEN hit resistance near the 61.80% retracement just above 46. MACD is barely in positive territory and this downturn puts it on the trajectory to turn negative....
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DOW HOLDS RESISTANCE BREAK WITH CONSOLIDATION -- NASDAQ 100 FORMS ANOTHER LOWER HIGH -- CONSUMER DISCRETIONARY AND INDUSTRIALS HOLD THE KEY -- NETWORKING ISHARES TESTS SUPPORT WITH THROWBACK -- REGIONAL BANK SPDR BREAKS DOWN AND UNDERPERFORMS
by John Murphy,
Chief Technical Analyst, StockCharts.com
DOW HOLDS RESISTANCE BREAK WITH CONSOLIDATION... Link for todays video. The bears have yet to fully arrive as Chart 1 shows the Dow Industrials holding its resistance break with a consolidation the last five weeks. The senior Average broke resistance with the early September surge and broken resistance turned into...
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NYSE AD Line Offsets Weakness in Nasdaq AD Volume Line
by Arthur Hill,
Chief Technical Strategist, TrendInvestorPro.com
The indicator summary weakened a little big more because I downgraded SPY momentum to neutral. The market is clearly split with relative weakness in the technology weighing on the Nasdaq and relative strength in the finance sector helping the NYSE. In fact, the NYSE AD Line hit a new all...
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SPY Stalls Just Below Range Resistance
by Arthur Hill,
Chief Technical Strategist, TrendInvestorPro.com
Tech stocks got whacked again as Google and Microsoft came up short on their earnings reports. The trend in worse-than-expected earnings continues, especially for tech companies and especially for tech companies tied to the PC (Microsoft, Intel, AMD, Checkpoint, HP). The Technology SPDR (XLK) was already underperforming the broader market...
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The License Number of the Google Truck
Here's a huge PRO-level chart of the 1-minute price action for Google today:
(Be sure to click it once or twice in order to see it at its full size. PRO members can click here to see a live version.)
Check out the two tiny test trades that...
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Big Red Boxes Fill the Market-Cap Sector Carpet
by Arthur Hill,
Chief Technical Strategist, TrendInvestorPro.com
Now wonder the Technology SPDR (XLK) is getting slammed. The image below shows the technology sector in market capitalization mode on the Sector Carpet. Three of the biggest boxes are red. Google (1) is down the most, Apple (2) is down almost 2% and IBM (3) is down almost 3%...
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TRAVELERS LEADS PROPERTY & CASUALTY INSURANCE STOCKS HIGHER -- LIFE INSURANCE STOCKS ARE ALSO STRENGTHENING -- LEADERS INCLUDE LINCOLN, METLIFE, AND AFLAC -- COAL STOCKS MAY BE BOTTOMING -- LEADERS INCLUDE JAMES RIVER, CONSOLIDATED ENERGY AND PEABODY
by John Murphy,
Chief Technical Analyst, StockCharts.com
TRAVELERS LEADS PROPERTY & CASUALITY INSURANCE GROUP HIGHER... Insurance stocks are attracting a lot of new money into a reviving financial sector. Chart 1 shows the Dow Jones US Property & Casualty Insurance Index surging to the highest level in five years. Its relative strength line (below chart) is starting...
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Swinging from Risk Off to Risk On
by Arthur Hill,
Chief Technical Strategist, TrendInvestorPro.com
The markets moved from risk-off mode last week to risk-on mode this week. Perhaps the markets are like the weather. Don't like the trend? Wait a day or two and it will change. Trading has been quite volatile the last few weeks and we could see another mood...
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Charts of Interest: AA, HBAN, KO, MGM, MOS, POT, SYMC
by Arthur Hill,
Chief Technical Strategist, TrendInvestorPro.com
Careful out there. Earnings season is upon us.
AA Battle and Hold Support.
HBAN Surges within Consolidation.
Plus KO, MGM, MOS, POT, SYMC
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...
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SPY CONSOLIDATES AT HIGH LEVEL -- MIXED SECTOR PERFORMANCE TURNS SPY FLAT -- XLF CHALLENGES PRIOR HIGHS AS XLK REMAINS IN CORRECTION -- HOME CONSTRUCTION ETF HITS 52-WEEK HIGH -- SURGE IN EURO PUSHES MONEY INTO RISK-ON MODE
by John Murphy,
Chief Technical Analyst, StockCharts.com
SPY CONSOLIDATES AT HIGH LEVEL... Link for todays video. The S&P 500 ETF (SPY) remains in an uptrend since early June, but the short-term trend has turned flat with a consolidation the last six weeks. Chart 1 shows SPY hitting a 52-week high in early September. Trading turned...
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SCTR Surges for First Solar and Dean Foods
by Arthur Hill,
Chief Technical Strategist, TrendInvestorPro.com
Chartists can use the StockCharts Technical Rank (SCTR) table on an intraday basis to find stocks making big moves. A sort of the "change" column shows First Solar and Dean Foods improving the most in early trading. Also notice that four financial stocks and three technology stocks are...
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XLB Breaks Resistance - TLT fails at Resistance
by Arthur Hill,
Chief Technical Strategist, TrendInvestorPro.com
Stocks extended their oversold bounce with the Nasdaq 100 ETF (QQQ) leading the way. QQQ was one of the hardest hit and subsequently got the biggest rebound. All sectors were up with Basic Materials SPDR (XLB) surging 2.4% on the day. Energy was also strong as the Energy SPDR...
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Sector Carpet Shows All Materials Stocks Gaining
by Arthur Hill,
Chief Technical Strategist, TrendInvestorPro.com
The Sector Market Carpet is a great way to find market leaders. Today, the Basic Materials SPDR (XLB) is the strongest sector with the average stock up around 1.9%. Drilling down into the sector shows all 30 components moving higher. Alcoa (AA) has the smallest gain (.91%) and Cliffs...
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GLOBAL STOCKS RALLY WITH A LOT OF HELP FROM EUROPE -- NASDAQ AND S&P 500 BOUNCE OFF SUPPORT LINES -- FREEPORT MCMORAN COPPER & GOLD LEADS STRONG MATERIAL SECTOR HIGHER
by John Murphy,
Chief Technical Analyst, StockCharts.com
EUROPE LEADS GLOBAL STOCKS HIGHER... A strong performance in Europe is helping propel global stocks higher today. Chart 1 shows Europe 350 iShares (IEV) gaining 1.7% after recently bouncing off its 50-day average. That also puts the IEV in position to exceed its spring high for the second time...
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XLV and XLF Lead Oversold Bounce
by Arthur Hill,
Chief Technical Strategist, TrendInvestorPro.com
Stocks got an oversold bounce on Monday with the S&P MidCap 400 SPDR (MDY) leading the charge. Mid-caps occupy a certain sweet spot in the market because they are not too big and not too small. All nine sectors moved higher with the Healthcare SPDR (XLV) and Finance...
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Charts of Interest: AAPL, GRMN, JBLU, PMTC, SRCL, TXN
by Arthur Hill,
Chief Technical Strategist, TrendInvestorPro.com
Careful out there. Earnings season is in full swing.
AAPL Forms Second Hammer.
TXN Gaps and Gains on High Volume.
Plus GRMN, JBLU, PMTC, SRCL.
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...
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Spanish IBEX Hits Resistance in the Middle of Triangle
by Arthur Hill,
Chief Technical Strategist, TrendInvestorPro.com
The Spain Bolsa de Madrid IBEX 35 Index ($IBEX) surged from mid July to mid September and turned back the last three weeks. Despite a 30% bounce off the lows, the index is still in a bigger downtrend and resistance is nigh. The center of the prior triangle marks a...
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S&P 500 TESTS BROKEN RESISTANCE AS MACD WEAKENS -- FEWER S&P 500 STOCKS EXCEEDED THEIR 200-DAY SMAS -- MACD TURNS DOWN FOR THE EUROPEAN TOP 100 INDEX -- STOCHRSI REMAINS BULLISH FOR THE EURO
by John Murphy,
Chief Technical Analyst, StockCharts.com
S&P 500 TESTS BROKEN RESISTANCE AS MACD WEAKENS... Link for todays video. The S&P 500 is at its moment-of-truth of truth as it tests broken resistance and MACD rolls over. Chart 1 shows this benchmark index breaking above 1425 and this level turning into support over...
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SPY Tests Support - USO Challenges Resistance
by Arthur Hill,
Chief Technical Strategist, TrendInvestorPro.com
Stocks moved lower last week with the S&P 500 ETF (SPY) falling over 2%, which was the steepest decline since May. The Nasdaq 100 ETF (QQQ) lost 3.33% as large techs really took it on the chin. The Consumer Discretionary SPDR (XLY) and Technology SPDR (XLK) led...
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December Corn Makes a Break For It
by Arthur Hill,
Chief Technical Strategist, TrendInvestorPro.com
Corn surged during the summer drought news and then corrected as summer drew to a close. This correction appears to be ending as December Corn ($CZ12) broke channel resistance and the Percent Price Oscillator (PPO) turned up. This week's low now marks key support at 725.
Click this...
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CROSSOVER INDICATORS TURNING BEARISH FOR XLY -- INDUSTRIALS SPDR TESTS SUPPORT AND UNDERPERFORMS -- 20+ YEAR T-BOND ETF CHALLENGES RESISTANCE -- GOLD HITS LONG-TERM RESISTANCE -- GOLD SPDR CONSOLIDATES AS DOLLAR FIRMS
by John Murphy,
Chief Technical Analyst, StockCharts.com
CROSSOVER INDICATORS TURNING BEARISH FOR XLY... Link for todays video. The Consumer Discretionary SPDR (XLY) is starting to show relative weakness with a test of the late September low. XLY broke this low with Thursdays close, but rebounded somewhat early Friday. Note that the S&P 500 ETF (SPY)...
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Seven Attributes To Give You The Edge
by Gatis Roze,
Author, "Tensile Trading"
What do Wayne Gretsky, Coach Phil Jackson, Michael Jordan and William O’Neil have in common? They all share the same unique blend of personal attributes that have led to individual greatness in their careers. I’m a huge sports fan, but not in the classic sense of religiously following...
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Nasdaq and Techs Weigh on Indicator Summary
by Arthur Hill,
Chief Technical Strategist, TrendInvestorPro.com
The indicator summary remains positive overall, but there are clearly some bearish undercurrents at work. Namely, the Nasdaq and technology sector are underperforming and showing relative weakness. The $COMPQ:$NYA ratio broke down this past week and the Technology SPDR (XLK) is the weakest of the nine sectors over the...
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XLF Breaks Flag Resistance - SPY Fails to Hold Early Gains
by Arthur Hill,
Chief Technical Strategist, TrendInvestorPro.com
Stocks started the day strong, but selling pressure took hold and the market finished mixed. Just how mixed? The Nasdaq 100 ETF (QQQ) edged lower (-.31%), but the Nasdaq 100 Equal-Weight ETF (QQEW) edged higher (+.35%). The sectors were also mixed with six up and three down. The Technology...
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Sector PerfChart Shows Why the S&P 500 is so Mixed Up
by Arthur Hill,
Chief Technical Strategist, TrendInvestorPro.com
The Sector PerfChart shows the Finance SPDR (XLF) leading the S&P 500 since September and the Technology SPDR (XLK) lagging the S&P 500. These two sectors are by far the biggest sectors in the index. Moreover, this performance split explains the trading range in the S&...
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