Despite a sharp decline in May-June, the Dow Industrials remains above the Bullish Support Line extending up from the October low. The red "A" marks the October column. This line sets support right at 12000. A break would reverse the current uptrend and require a red Bearish Resistance... READ MORE
It was a classic stimulus-response rally on Wednesday. Wait, I did not see any actual stimulus. In reality, the market was anticipating stimulus in Europe, the US and elsewhere around the world. Rumors abound that the EU is poised to rescue Spanish banks and implement some sort of Euro-wide banking... READ MORE
ANN Closes Lower and Shows Relative Weakness. BAC Holds above Late May Low and Breaks Resistance. ROL Shows Relative Strength with a Bull Flag. Plus CCL, DDS, LH This commentary and charts-of-interest are designed to stimulate thinking. This analysis is not a recommendation to buy, sell, hold or sell short... READ MORE
SPY is getting a nice oversold bounce with a gap up and Andrews' Pitchfork marks resistance in the 133 area. The pitchfork traces out a falling channel extending down from the April-May highs and the upper line crosses the 133 level next week. You can read more on Andrews... READ MORE
EURO RISES AND TREASURIES FALL AS MARKET TAKES ON SOME RISK... Link for todays video. Stocks are getting an oversold bounce this week as the Euro rebounds from oversold levels and treasuries correct their excesses. Chart 1 shows the Euro Currency Trust (FXE) rebounding back towards 125 the last four... READ MORE
Stocks bounced on Monday with small-caps and mid-caps leading the way. The Russell 2000 ETF (IWM) gained around 1% and the S&P MidCap 400 SPDR (MDY) surged 2.05%. The chart below shows MDY forming a bullish engulfing as it surged back towards its 200-day moving average. While... READ MORE
Stocks are rebounded on Tuesday with homebuilders leading the way. The S&P Sector Carpet shows the Lennar (LEN) and Pulte (PHM) leading within the consumer discretionary sector. On the price charts, PHM is bounced off its April low and LEN formed a bullish engulfing pattern. Click this image... READ MORE
Stocks ended mixed on Monday with mid-caps showing relative weakness and large techs showing relative strength. The sectors were also mixed with five up and four down. The Finance SPDR (XLF) led the losers by falling almost 1%. Relative weakness in this key sector is a negative for the market... READ MORE
AAPL Shows Relative Strength. AMZN Retraces 50-61.80% of Prior Surge. ORCL Firms Just above Support Zone. Plus $AMGN, $CIEN 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... READ MORE
The Utilities SPDR (XLU) is virtually alone at the top as it trades near a 52-week high. A bullish cup-with-handle is taking shape and a break above resistance would signal a continuation higher. After showing relative weakness from January to mid March, the ETF started outperforming in mid March as... READ MORE
S&P 500 FIRMS AFTER BREAKING 200-DAY MOVING AVERAGE... Link for todays video. Stocks got slammed last Friday after yet another economic report came in below expectations. Actually, a few economic reports came in below expectations last week (Chicago PMI, jobless claims, non-farm payrolls, ISM Manufacturing). This trend continued... READ MORE
Friday produced yet another round of economic reports that were below expectations and the stock market moved sharply lower. Even though EU issues may be lurking behind the scenes, don't forget that US economic reports have been falling short for two months now. While the employment numbers were... READ MORE
TOP TEN STOCKCHARTS.COM "NOOKS" THAT YOU MIGHT BE MISSING - Every day we hear from people that have just discovered a great little nook of our website that they didn't know about. While we love hearing from people when they make these discoveries, it is... READ MORE
Hello Fellow ChartWatchers! The bears are out and pulling the market lower. All of our market commentators will discuss the latest technical developments below (including some potential "safe havens" that may benefit from the current market moves) so we decided to give you an extra-long, extended version of... READ MORE
BOND YIELDS AND COMMODITIES HIT NEW LOWS... Everywhere I look I see more serious warning flags for the U.S. stock market. Two of them are coming from recent breakdowns in bond yields and commodity prices. The chart below shows the 10-Year T-Note Yield (green line) and CRB Index (brown... READ MORE
To be honest, the actual "soaring" for bonds began last July when bonds began an advance of about 33% in two months. After a five-month period of consolidation, another up leg advanced prices about 18% off the bottom of the trading range, making a total advance of about... READ MORE
Over the past week, we've seen gold shares gain sponsorship without the physical gold metal rising. Perhaps this was the "canary in the coal mine" as they say, but gold prices roared ahead yesterday from a low of $1545 to a high of $1632 before closing... READ MORE
All traders must decide whether to invest their dollars aggressively or conservatively. It's a basic principle, yet following the flow of such dollars can provide us valuable clues about the likely direction of the stock market. For me, it's a simple case of tracking the 10... READ MORE
After a failure at broken support, the Consumer Discretionary SPDR (XLY) looks set for a move towards a Fibonacci cluster. The chart below shows XLY breaking support and becoming oversold in mid May. The ETF then bounced back to broken support and this area turned into resistance. It is not... READ MORE
I trust you read last week’s post, Part I on “The Art of Selling Well”. Those rules provide the foundation for what I will describe this week. I would hope that most investors reading about last week’s basic selling system “Three Descending Peaks” came away saying “I can... READ MORE
STOCKS HIT BY LESS-THAN-EXPECTED JOBS GROWTH... Link for todays video. Economic reports have been coming in below expectations over the last two months and todays employment report was no exception. While I would not call the numbers outright negative, job growth was clearly less-than-expected in May and prior months were... READ MORE
The chart below shows five different treasuries yields. Notice that five and seven year yields are falling the fastest as money moves into medium-term treasuries. After peaking on March 19th, the 5-year Treasury Yield ($UST5Y) and the 7-year Treasury Yield ($UST7Y) are down over 38% in less than three months.... READ MORE
Despite a shallow bounce and some firmness the last two weeks, there is no change in the indicator summary. Current conditions remain bearish overall. The major index ETFs and the key sector SPDRs all broke down in May. The AD Volume Lines broke support from their March-April lows. Net New... READ MORE
Stocks were mixed and directionless on Thursday. Concerns in Europe and worse-than-expected economic reports buoyed the bears, while the prospects of further quantitative easing from the European Central Bank (ECB) and Fed put a bid in stocks. Don't be surprised if we see some big announcement out of... READ MORE
The S&P Sector PerfChart shows the percentage change for the nine sector SPDRs and the S&P 500 for the month of May. Eight of nine sectors are down with finance leading the day (down around 10%). The utilities sector sports the only gain as investors moved... READ MORE
BOND YIELDS AND COMMODITIES HIT NEW LOWS... Everywhere I look I see more serious warning flags for the U.S. stock market. Two of them are coming from recent breakdowns in bond yields and commodity prices. Chart 1 shows the 10-Year T-Note Yield (green line) and CRB Index (brown line)... READ MORE
Stocks were hit with concerns in Europe again on Wednesday. Once again, the market failed to put together back-to-back gains and failed to follow through on Tuesday's advance. All major index ETFs were down with small-caps leading the way. Large-cap techs held up relatively well as the Nasdaq... READ MORE
Has anyone else noticed how well Dean Foods (DF) has been doing recently? DF has had a top SCTR score for a while now and it continues to move higher. Don't forget to check the SCTR pages frequently to find similarly strong stocks. Extra members should also try... READ MORE
S&P 500 AND RUSSELL 2000 FAIL AT BROKEN SUPPORT ... Link for todays video. Concerns in Europe spread across the Atlantic as selling pressure hit stocks on Wednesday. Todays selling pressure comes after an oversold bounce that extended to Tuesday. Chart 1 shows the S&P 500 breaking... READ MORE
After a rise the last three weeks, COLM hit a pocket of selling pressure and formed a bearish engulfing just below its April highs. This pattern formed even as the S&P 500 closed higher. Also notice that downside volume has consistently outpaced upside volume since late April. The... READ MORE
June is shaping up to be one critical month. Worse-than-expected economic reports this week would solidify the medium-term downtrends in the major index ETFs. Another Euro crisis after the Greek elections could keep buyers at bay even longer. A slight majority of US economic reports have been worse-than-expected the last... READ MORE
After returning all the way to the December lows in May, Alcoa (AA) firmed last week and started this week with a gap higher. There is some support here, but the trend since early February is down and this gap is on low volume (so far). Click this image for... READ MORE
Stock futures are up sharply this morning as the world takes a small bite of risk. Stocks are higher in Asia with Shanghai and Australia up just over 1%. European stocks are higher, but only modestly so with most major indices up around .50%. Oil futures are following the risk-on... READ MORE
Careful out there. It could be a very volatile week. AMAT Forms Harami at Oversold Levels. PNC Stalls at Support. RIG Becomes Oversold and Consolidates. Plus ALTR, BHI, FNSR This commentary and charts-of-interest are designed to stimulate thinking. This analysis is not a recommendation to buy, sell, hold or sell... READ MORE
In its most elemental form, selling is an inner struggle that deals with an investor’s ability to tame two wild horses: one’s own inner fear and greed. In his book Trading in the Zone, Mark Douglas wrote that an investor must address four types of fear: * losing money... READ MORE
SPY REMAINS BELOW SUPPORT BREAK... Link for todays video. After a shellacking the first half of May, stocks finally firmed this week and the major index ETFs moved into short-term trading ranges. This, however, is not enough to undo the technical damage done the first three weeks of May. We... READ MORE
This chart cover the recent shift to risk-off. The US Dollar Index ($USD) and the 30-Year US Treasury ($USB) are leading over the last six months as both trade near six month highs. Spot Gold ($GOLD) and Spot Light Crude ($WTIC) are lagging as both trade near six month lows.... READ MORE
The indicator summary remains firmly bearish with nine of ten indicator groups now in the bearish camp. The Bullish Percent Index joined the bears as five of the nine sector BPIs moved below 50%. The AD Volume Lines clearly broke support to start downtrends this month. New lows expanded significantly... READ MORE
After meandering for most of the day Thursday, stocks caught a late bid and moved higher in the final hour. Except for the Nasdaq 100 ETF (QQQ), which closed down .66%, the major index ETFs were slightly higher on the day. The sectors were mixed with the Technology SPDR (XLK)... READ MORE
The image below shows the Market Summary Market Carpet zoomed in on the industry groups. (Note: click the heading to zoom in on a ground). Right away the Amex Airline Index ($XAL) stands out with a dark green square. This means it is leading with the biggest gains. On the... READ MORE