The Consumer Staples SPDR (XLP) remains one of the strongest sectors and Heinze is part of that strength with an ascending triangle breakout. With a surge the last two weeks, the stock broke above its January-February highs and entered uncharted territory. Relative strength in consumer staples stocks shows a preference... READ MORE
INTERMARKET IMPLICATIONS OF A STRONGER DOLLAR... The monthy bars in Chart 1 suggest that the U.S. Dollar Index may be going through a major bottoming process. After peaking during 2002, the USD fell steadily until 2008 when it bottomed. Since then, it has been trending sideways in what appears... READ MORE
Several major index ETFs are testing their March-April lows and these support zones could produce oversold bounces. The Russell 2000 ETF (IWM), Dow Industrials SPDR (DIA), Rydex S&P Equal Weight ETF (RSP) and S&P MidCap 400 SPDR (MDY) are all testing support from the March-April lows.... READ MORE
CNX Bounces off Consolidation Support with big Volume. GFI Forms Bullish Engulfing. USI Forms within Gap Zone. Plus AEP, AN, ITT 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
DOW AND RUSSELL 2000 TESTS OFF APRIL LOWS ... Link for todays video. With a sharp decline the last few days, chart 1 shows the Dow Industrials testing its April lows and key support in the 12700 area. A break below these lows would forge a lower trough and argue for... READ MORE
The PerfChart below shows the percentage change for seven intermarket ETFs. The three risk assets (stocks, oil, euro) are down, while the three safe havens are up (dollar, treasuries). Gold is going against the Dollar and along with the stock market. Click this image for a live chart.... READ MORE
The S&P 500 ETF (SPY) pierced its April lows with a sharp decline on the open and the bounced with an afternoon surge. Traders can expect this kind of volatility because bargain hunters and bottom pickers become active after sharp decline. SPY reached 135 on Tuesday's... READ MORE
Warren Buffett once said, “You only have to do a few things right in your life so long as you don’t do too many things wrong.” The objective of this new series of blogs is to increase the probabilities that you will do more “things right” and fewer “things... READ MORE
RETAILERS GET DISCOUNTED... Selling has resumed in stocks this morning. The biggest percentage losses are appearing in consumer discretionary stocks, and retailers in particular. Chart 1 shows the Consumer Discretionary SPDR (XLY) falling below its 50-day line for the first time this year. That had been one of the market&... READ MORE
After a big decline last week, stocks firmed on Monday and there is no change for the major index ETFs. A lot of news hit the fan over the past week and it looks like traders took a rest on Monday. The results of the Greek and French elections did... READ MORE
GOOG Forms Pennant after Sharp Decline. MMM Hits Resistance and Declines into Gap Zone. URBN Declines after Big Harami Pattern. Plus DHR, FITB, LUV, SCHW 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... READ MORE
USING TRIX AND AROON FOR IDENTIFY THE LONG-TERM TREND... Link for todays video. A few months ago I featured a simple trend identification system using the 18-week Aroon oscillators and the Trix oscillator (10,6). You can read more about both indicators in our ChartSchool. Aroon is a directional indicator... READ MORE
Even though stocks opened lower on Monday, market action quickly turned mixed, as evidenced on the most active tables for the Nasdaq and NYSE. Chartists can see the intraday action by clicking the CandleGlance links. BAC has a bullish engulfing working and Pfizer has an inverted hammer working on Monday.... READ MORE
Uncertainty ratcheted up a notch in Europe as Hollande won the French election and the ruling coalition in Greece was dealt a setback. Asian stocks are down sharply, European stocks are down and Dow futures are down around 100 points. Oil, gold and the Euro are also down, while the... READ MORE
Hello Fellow ChartWatchers! One of the big benefits of becoming a StockCharts member is the ability to access additional charting options. Today I want to show you how the "Advanced Options" section of the "Indicators" area allows you to add a "Signal Line" to... READ MORE
It looks like traders and investors took the "sell in May" mantra seriously this week. Stocks fell sharply after Friday morning's weak April jobs report was released. The worst performance came in the Power Shares QQQ Trust which led the rest of the market lower. Chart... READ MORE
Everything seemed perfectly aligned for the bulls. In March, slowing momentum on the bulls' side was a growing concern, but the consolidation that took place in the latter part of March and throughout April relieved that concern, so technically it appeared the bulls might resume control of the action.... READ MORE
With a gap down and sharp decline, the Industrials SPDR (XLI) formed a lower high and broke wedge support. But that's not all. The chart below also shows a potential head-and-shoulders pattern taking shape. After hitting a 52-week high in March, the ETF declined all the way back... READ MORE
STOCKS INDEXES WEAKEN ON RISING VOLUME... It looks like traders and investors took the "sell in May" mantra seriously this week. Stocks fell sharply after Friday morning's weak April jobs report was released. The worst performance came in the Power Shares QQQ Trust which led the... READ MORE
May 1 marked the beginning of a 6-month period of unfavorable seasonality. Research published by Yale Hirsch in the Trader's Almanac shows that the market year is broken into two six-month seasonality periods. From May 1 through October 31 seasonality is unfavorable, and the market most often finishes... READ MORE
Stocks were down sharply in early trading on Friday with the energy sector showing the most red in the Sector Carpet. There are, however, usually a few stocks bucking the trend and these can be found by looking for the isolated patches of green. Notice Micron (MU), Flour (FLR) and... READ MORE
QQQ FAILS TO HOLD BREAKOUT AS CCI TURNS NEGATIVE... Link for todays video. Stocks fell after the employment report showed non-farm payrolls increasing just 115,000, which was below expectations. Todays report caps a week of less-than-stellar economic reports. While I would not consider this weeks economic reports bad, they... READ MORE
There are no changes in the indicator summary, but I am watching the AD Volume Lines quite closely. Even though both bounced over the last few weeks and essentially held support from the March lows, this bounce has not been that strong. Failure to reach the March high and a... READ MORE
Stocks were under pressure on Thursday after a worse-than-expected ISM Services Index. This diffusion index came in at 53.5 for April, compared to 56 in March. Even though the index dropped, it remains well above 50 and indicative of economic expansion, not contraction. From ism.com, "A diffusion... READ MORE
The Basic Materials SPDR (XLB) reversed higher last week with an island reversal, but stalled over the last 4-5 days and a rising wedge is taking shape. For now, the gap and island reversal dominate the chart. A move below 36 would fill this gap and break the wedge trendline.... READ MORE
Upside Volume Picks up for ATML. KFY Gaps up and Consolidates. MD Forms Bullish Engulfing on High Volume. Plus BWA, DWA, KMX 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
Stocks opened weak after the ADP Employment report came in below expectations. Nevertheless, the market firmed and worked its way higher the rest of the day. Small-caps (Russell 2000) and techs (Nasdaq) finished with small gains, the S&P 500 and Dow ended the day with small losses. All... READ MORE
The FirstTrust Internet ETF (FDN) broke out with a gap last week and that gap is holding. Mind that gap! The gap is bullish as long as it holds. Also notice that FDN broke resistance from the mid April highs and the Price Relative broke the trendline extending down from... READ MORE
CONSUMER DISCRETIONARY SPDR LEADS SECTORS HIGHER... Link for todays video. The Consumer Discretionary SPDR (XLY) is the only sector SPDR to hit a 52-week high this week. The Utilities SPDR (XLU) and the Consumer Staples SPDR (XLP) are close to new 52-week highs, but have yet to actually break out.... READ MORE
It was pop and drop for stocks on Tuesday. Stocks surged on the heels of a better-than-expected ISM Manufacturing Index, but failed to hold early gains and fell sharply in the final hour. Small-caps (Russell 2000) and techs (Nasdaq) led the way lower. Traders may be getting cold feet ahead... READ MORE
DOW INDUSTRIALS EXCEED 2008 HIGH... With stocks ralling nicely today, the Dow Industrials are the first to reach a new 52-week high. Chart 1 shows the Dow trading above its spring highs to resume its major uptrend. The weekly bars in Chart 2 also show the Dow moving above its... READ MORE
The Home Construction iShares (ITB) is leading the market higher again with a fresh 52-week high this week. The chart below also shows the Price Relative (ITB:SPY ratio) hitting a new high. Below this chart is a snapshot from today's new high list. A sort by industry... READ MORE
Stocks pulled back on Monday after the Chicago PMI came in below expectations and reached its lowest level since November 2009. Nevertheless, this key indicator came in at 56.20, which is well above 50 and indicative of economic expansion. Anything above 50 is positive. Don't forget that... READ MORE
BHI Breaks Pennant Resistance. HPQ Consolidates after High Volume Surge. MAN Breaks Pennant Support. Plus ADM, CMI, MON, SKS 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... READ MORE
The StockCharts Technical Rank (SCTR) is updated throughout the day so traders can find stocks making significant technical moves when they happen. The table below represents a snapshot from April 30th at 12:21 PM ET. These are the stocks with the biggest technical rank moves within the S&... READ MORE
NOOSE TIGHTENS FOR THE TRANSPORT ISHARES ... Link for todays video. While the S&P 500 and Dow zoomed to new highs on April 2nd, the Dow Transports and Transport iShares (IYT) fell short and continue to underperform. Even though we have yet to see a break down or trend... READ MORE
The short-term trend for stocks changed with Wednesday's gap and breakout. The medium-term and long-term trends were already up. This means that all three trends are up again and we could see a challenge to the March highs. While I hate to play the fundamental card, the fate... READ MORE
The Consumer Staples Bullish% Index ($BPSTAP) is the strongest of the nine sector SPDR Bullish Percent Indexes. It is interesting that the BPI for this defensive sector shows the most strength. In contrast, the Consumer Discretionary Bullish% Index ($BPDISC) is currently around 69%. You can read more in our ChartSchool... READ MORE
Big money is made by being on the correct side of a major market move and executing a carefully pre-planned scenario with conviction. I'll share an example. When I was an MBA student in 1979, Robert Swanson, the founder of Genentech, spoke to my class about an industry... READ MORE
COUNT OR NO COUNT, THE TREND HOLDS THE TRUMP CARDS... Link for todays video. There have been a few requests for an Elliott Wave count so this will be the Elliott Wave edition. This is opening Pandoras box because alternative counts and trading biases often come into play when making... READ MORE