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NASDAQ 100 ETF TESTS IMPORTANT SUPPORT LEVEL -- INTERNET ETF STALLS AT KEY RETRACEMENT -- ELLIOTT WAVE COUNTS SUGGESTS ABC CORRECTION UNDERWAY IN $SPX -- SETTING HEIKIN-ASHI SUPPORT FOR SPY -- GOLD HOLDS RESISTANCE BREAKOUT

by John Murphy,

Chief Technical Analyst, StockCharts.com

NASDAQ 100 ETF TESTS IMPORTANT SUPPORT LEVEL... Link for todays video. Chart 1 shows the Nasdaq 100 ETF (QQQ) testing support from the mid October lows. Support there stems from two spike lows in October and Tuesdays low. This is an important test because a support break here would reverse...   READ MORE 

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Gold Holds Support as Bonds and the Dollar Surge

by Arthur Hill,

Chief Technical Strategist, TrendInvestorPro.com

A couple of wrenches, which were thrown out of left field, landed in the flywheel on Monday and Tuesday. While I am not sure the MF Global debacle and Greek referendum are totally to blame for the two day meltdown, there is no questioning the extent of recent selling pressure....   READ MORE 

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QQQ and IWM Consolidated at Support with Rising Flags

by Arthur Hill,

Chief Technical Strategist, TrendInvestorPro.com

The S&P 500 ETF (SPY) broke support with a gap down and then consolidated around 122-124. This zone marks support on the daily chart. Broken resistance from the late August and mid September peaks turns support on this chart. On the 60-minute chart, the rise over the last...   READ MORE 

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Charts of Interest: DELL, FNSR, MRVL, PEP, SBUX, WFC

by Arthur Hill,

Chief Technical Strategist, TrendInvestorPro.com

FNSR Breaks Wedge Trendline with Volume. PEP Consolidates after Surge. SBUX Gaps Down and the Gap Remains Unfilled. Plus DELL, MRVL, WFC 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 

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A Failed Breakout and Island Reversal for MDY

by Arthur Hill,

Chief Technical Strategist, TrendInvestorPro.com

With a gap down and sharp decline the last two days, the S&P MidCap 400 SPDR (MDY) failed to hold the resistance breakouts around 160. Also notice that the ETF formed an island reversal, Last Thursday's gap was countered by today's gap to create...   READ MORE 

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GREEK DEBT REFERENDUM SENDS GLOBAL STOCKS AND COMMODITIES TUMBLING -- BONDS ARE ONLY WINNERS -- GERMAN AND FRENCH SHARES NEGATE LAST THURSDAY'S UPSIDE ACTION -- U.S. STOCK INDEXES FALL BACK BELOW THEIR 200-DAY AVERAGE

by John Murphy,

Chief Technical Analyst, StockCharts.com

EUROPEAN STOCKS TUMBLE ... The surprise announcement that Greece will hold a voter referendum on the European bailout plan has thrown the entire rescue plan into doubt and has unsettled global markets. European shares tumbled on the news and everyone else with them. Charts 1 and 2 show French and German...   READ MORE 

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Oil Service HOLDRS Runs into Resistance after Gap

by Arthur Hill,

Chief Technical Strategist, TrendInvestorPro.com

The Oil Service HOLDRS (OIH) surged over 30% in October and hit resistance in the 137 area. Resistance here stems from broken support and the August highs.  This level also marks a 61.80% retracement of the prior decline and the ETF is quite overbought after the October run. Click...   READ MORE 

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STOCKS GIVE UP MOST OF THURSDAYS SURGE WITH SHARP DECLINE -- UTILITIES SECTOR HAS THE STRONGEST CHART -- EURO PLUNGES AS RUMOR BECOMES NEWS -- STRONG DOLLAR WEIGHS ON MATERIALS AND ENERGY SECTORS -- FRENCH AND GERMAN INDICES FOLLOW EURO LOWER

by John Murphy,

Chief Technical Analyst, StockCharts.com

STOCKS GIVE UP MOST OF THURSDAYS SURGE WITH SHARP DECLINE... Link for todays video. Stocks took it on the chin Monday with a broad decline that affected all sectors. The Euro kicked things off with a sharp decline. This move put the market in risk-off mode, which means money moves...   READ MORE 

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Markets Make a Hard Risk-off Turn on Monday

by Arthur Hill,

Chief Technical Strategist, TrendInvestorPro.com

The market made a statement on Monday. After a big risk-on move last week, the market made a hard turn towards risk-off on Monday. It is just one day, but a bad week would likely suggest that the medium-term bullish signals seen over the last two weeks have been negated....   READ MORE 

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Charts of Interest: AAPL, BAX, GME, NXY, SPLS

by Arthur Hill,

Chief Technical Strategist, TrendInvestorPro.com

AAPL Forms Bear Flag. GME Forms Shooting Star Near Resistance. Upside Volume Surges for NXY. Plus BAX and SPLS 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 

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Stocks Become Overbought as Big Economic Week Looms

by Arthur Hill,

Chief Technical Strategist, TrendInvestorPro.com

First, note that stocks remain in strong uptrends since the October 4th reversals. Second, the major index ETFs are quite overbought. IWM is up over 24% the last 19 days. SPY is up almost 17% and QQQ is up just over 15%. These are huge gains in just four weeks....   READ MORE 

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October is Clearly Risk-On Month with SPY and USO Leading

by Arthur Hill,

Chief Technical Strategist, TrendInvestorPro.com

Chartists can measure the market's risk tolerance by comparing the simple line charts for four ETFs. The S&P 500 ETF (SPY) and US Oil Fund (USO) rise when risk is "on", while the 20+ year Bond ETF (TLT) and US Dollar Fund (UUP) rise...   READ MORE 

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NETWORKING ISHARES BREAKS DOUBLE BOTTOM RESISTANCE -- HIGH YIELD BOND ETFS CHALLENGE SUMMER HIGHS -- BREADTH IMPROVES AS NEW 52-WEEK HIGHS EXPAND -- NASDAQ AND NYSE AD VOLUME LINES BREAK RESISTANCE

by John Murphy,

Chief Technical Analyst, StockCharts.com

NETWORKING ISHARES BREAKS DOUBLE BOTTOM RESISTANCE... Link for todays video. Chart 1 shows the Networking iShares (IGN) gapping up and breaking Double Bottom resistance with a surge above 29. I showed this chart on August 5th as the ETF had just formed a big bullish engulfing at support. IGN extended...   READ MORE 

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Indicator Summary Surges into Positive Territory

by Arthur Hill,

Chief Technical Strategist, TrendInvestorPro.com

As noted last week, another strong move in the stock market would likely turn the indicator summary positive. That is indeed what we got, especially with Thursday's surge. The NYSE AD Line and Nasdaq AD Volume Line surged through resistance levels. New 52-week highs expanded as the cumulative...   READ MORE 

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Stocks Surge to Extend Uptrends and Overbought Conditions

by Arthur Hill,

Chief Technical Strategist, TrendInvestorPro.com

Stocks surged on the open and closed strong with all boats rising. Small-caps and mid-caps led the advance, which shows a strong appetite for risk. All sectors were up with the Finance SPDR (XLF) surging almost 6%. Whether short covering or new buying, Thursday's advance is setting the...   READ MORE 

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EURO DEBT DEAL AND STRONG GDP REPORT GIVE BIG BOOST TO GLOBAL STOCKS -- EUROPE LEADS RALLY -- DOLLAR DROP BOOSTS COMMODITIES AS BONDS DROP -- S&P 500 IS TESTING 200-DAY AVERAGE

by John Murphy,

Chief Technical Analyst, StockCharts.com

EURO DEAL GIVE GIVE BOOST TO EUROPEAN MARKETS ... The overnight announcement of a Euro debt deal is giving a huge boost to global stocks this morning. The biggest gains are in Europe. Chart 1 shows the Euro surging 1.6% to move back above its 200-day average. Chart 2 shows...   READ MORE 

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Indecision Creeps into the Steel ETF

by Arthur Hill,

Chief Technical Strategist, TrendInvestorPro.com

The Steel ETF (SLX) surged above its mid October high with a big move on Monday, but turned indecisive on Tuesday and Wednesday. Notice how Tuesday's candlestick was completely within the range of Monday's. The pattern here is a Harami. This indecision extended as Wednesday'...   READ MORE 

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Trading Turns Choppy, but SPY Uptrend Holds

by Arthur Hill,

Chief Technical Strategist, TrendInvestorPro.com

Stocks started the day weak with large-cap techs leading the way lower early Wednesday. QQQ opened with a move below 56.5 and was down some 1.7% at one point. However, the bulls showed their resilience as stocks rallied back by the close. QQQ returned to positive territory. Small-caps...   READ MORE 

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Charts of Interest: AFFX, AKAM, AMKR, MDR, SLB, WFT

by Arthur Hill,

Chief Technical Strategist, TrendInvestorPro.com

Careful, it is still earnings season. AKAM Forms Pennant after Big Surge. AMRK Consolidates with Triangle. SLB Forms Bull Flag after Trendline Break. Plus AFFX, MDR, WFT 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...   READ MORE 

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QQQ SHOWS RELATIVE WEAKNESS -- RSI STALLS IN RESISTANCE ZONE FOR QQQ -- SPY TESTS DOUBLE BOTTOM BREAKOUT -- GOLD SURGES OFF LONG-TERM SUPPORT -- GLD NEGATES BEAR FLAG WITH UPSIDE BREAKOUT -- SILVER ETF MOVES ABOVE RESISTANCE

by John Murphy,

Chief Technical Analyst, StockCharts.com

QQQ STARTS SHOWING RELATIVE WEAKNESS ... Link for todays video. The Nasdaq 100 ETF (QQQ) was a market leader from June to September, but is turning into a market laggard here in October. Chart 1 shows QQQ surging off support in early October with a move above 58. The ETF was...   READ MORE 

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Retail HOLDRS Forms Evening Doji Star Reversal

by Arthur Hill,

Chief Technical Strategist, TrendInvestorPro.com

After a surge to the early July high, the Retail HOLDRS (RTH) formed a rare evening doji star. This bearish candlestick reversal pattern features a white candlestick, a doji and a long black candlestick. There are gaps on either side of the doji. This doji has a long upper shadow,...   READ MORE 

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Stocks Fall Sharply as Treasuries and Gold Break Out

by Arthur Hill,

Chief Technical Strategist, TrendInvestorPro.com

Do yourself a favor. Don't read about the EU summit. As Mickey Blue Eyes might say: Fuggedaboutit! Focus on the price charts. All known information is reflected in the charts. In fact, there is also likely a little bit of unknown information in the charts as well. Stocks...   READ MORE 

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Ciena Fails to Hold Breakout

by Arthur Hill,

Chief Technical Strategist, TrendInvestorPro.com

Sometimes a failed signal is as good as a signal. Ciena (CIEN) broke resistance with a surge above 12.50 on Friday-Monday, but failed to hold this breakout after Tuesday's high-volume decline. A long black candlestick formed as the stock opened slightly lower, moved down throughout the day...   READ MORE 

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DOW AND NASDAQ STRUGGLE WITH RESISTANCE AT THEIR 200-DAY AVERAGES -- TODAY'S GOLD BUYING MAY BE TIED TO STOCK SELLING -- GOLD MINER ETF IS BOUNCING OFF CHART SUPPORT AT ITS SUMMER LOW

by John Murphy,

Chief Technical Analyst, StockCharts.com

IMPORTANT TEST OF RESISTANCE... Charts 1 and 2 show the Dow Industrials and Nasdaq Composite Index struggllng with important resistance at their 200-day averages. The fact that those resistance lines are declining makes them even more formidable resistance (a declining 200-day line is more negative than a rising 200-day line)...   READ MORE 

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Stocks Extend Gains, but Treasuries Firm

by Arthur Hill,

Chief Technical Strategist, TrendInvestorPro.com

It is getting close to crunch time for the EU. How many times have we heard this before? Anyhow, yet another deadline is approaching and there are still rifts between Germany and France on the size, scope and leverage for the bailout fund. Stocks extended their advances on Monday with...   READ MORE 

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Charts of Interest: AMX, CHS, NTAP, POT, STI, SWKS, TMO

by Arthur Hill,

Chief Technical Strategist, TrendInvestorPro.com

AMX Breaks Flag Resistance with Volume. CHS Bounces off Flag Support. STI Surges to Challenge Resistance. Plus NTAP, POT, SWKS, TMO 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 

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Eaton Corp Breaks Pennant Resistance with Volume

by Arthur Hill,

Chief Technical Strategist, TrendInvestorPro.com

There were a lot of consolidation breakouts the last two days. After a surge the first week and a half of October, many stocks and ETFs consolidated for a week or so. With strength the last two days, these same stocks and ETFs are breaking consolidation resistance. The chart below...   READ MORE 

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IWM AND MDY BREAK CONSOLIDATION RESISTANCE -- INDUSTRIALS SPDR EXCEEDS PRIOR HIGHS -- INTERNET ETF SURGES THROUGH FLAG RESISTANCE -- OIL FOLLOWS STOCKS HIGHER AS WTI MOVES ABOVE $90 -- TREASURY ETFS FIRM DESPITE RISK-ON ENVIRONMENT

by John Murphy,

Chief Technical Analyst, StockCharts.com

IWM AND MDY BREAK CONSOLIDATION RESISTANCE... Link for todays video. The S&P 500 ETF and Dow Industrials SPDR broke consolidation resistance last week. Not to be left behind, the Russell 2000 ETF (IWM) and S&P MidCap 400 SPDR (MDY) followed suit with breakouts on Monday. With...   READ MORE 

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SPY Breaks Mid October High as Treasuries Move Lower

by Arthur Hill,

Chief Technical Strategist, TrendInvestorPro.com

Stocks opened strong with a gap on Friday morning, consolidated and then closed strong. With another advance, the S&P 500 ETF (SPY) moved to a new high for the move as it broke above its mid October highs. The Russell 2000 ETF (IWM) is challenging its mid October...   READ MORE 

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SPY AND DIA MAKE BREAKOUT BIDS -- CONSUMER DISCRETIONARY SECTOR LEADS HIGHER -- STEEL ETF AND AIRLINE ETF FORM FLAG CONSOLIDATIONS -- HOMEBUILDING ETFS GO FROM LAGGARDS TO LEADERS

by John Murphy,

Chief Technical Analyst, StockCharts.com

SPY AND DIA MAKE BREAKOUT BIDS... Link for todays video. Stocks came charging out of the gates on Friday with the Dow Industrials SPDR (DIA) and the S&P 500 ETF (SPY) making breakout bids. Chart 1 shows DIA gapping above 116 on the open in a bid to...   READ MORE 

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Sector Rotations Show a Split Market Since July

by Arthur Hill,

Chief Technical Strategist, TrendInvestorPro.com

The Sector PerfChart below shows the performance for four sectors relative to the S&P 500. The Technology ETF (XLK) and the Consumer Discretionary SPDR (XLY) have been outperforming the S&P 500 since July 11th, while the Industrials SPDR (XLI) and Finance SPDR (XLF) have been underperforming....   READ MORE 

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NYSE AD Line and Nasdaq AD Line Challenge Resistance

by Arthur Hill,

Chief Technical Strategist, TrendInvestorPro.com

The October rally stalled over the last few days and many charts show that this stall is occurring at important levels. The S&P 500 ETF (SPY) and Dow Industrials SPDR (DIA) are both stalling at resistance from the late August highs. The NYSE AD Line and Nasdaq AD...   READ MORE 

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Stocks, Bonds and Dollar Remain Range Bound

by Arthur Hill,

Chief Technical Strategist, TrendInvestorPro.com

Short-term trading remains choppy as stocks bounce within a range. Playing the swings within this range is not suited for 60-minute charts. Chartists wishing to play these swings should turn to 10 or 15 minute charts. Thursday's SPY chart showed the swings within the trading range (119-123). It...   READ MORE 

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Market Carpet Highlights Leaders in the Finance Sector

by Arthur Hill,

Chief Technical Strategist, TrendInvestorPro.com

The Finance SPDR (XLF) was leading the market higher late Thursday afternoon. Chartists can check in on the Sector Market Carpet to find the leaders within a particular sector. First, click on the sector heading to isolate the sector. Second, right click with the mouse and choose "Show Ticker...   READ MORE 

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EMERGING MARKET ISHARES FAIL TEST OF 50-DAY LINE WHILE S&P 500 AND NASDAQ BACK OFF FROM RESISTANCE BARRIERS -- CONSUMER DISCRETIONARY SPDR STALLS AT 200-DAY LINE -- WAL MART NEARS 52-WEEK HIGH AND IS CONSUMER STAPLE LEADER

by John Murphy,

Chief Technical Analyst, StockCharts.com

EMERGING MARKET RALLY DISAPPOINTS... Two Thursdays ago (October 6) I showed Emerging Market iShares (EEM) scoring an upside weekly reversal from important support at its mid-2010 low. I took that as one of the signs that the global selloff was putting in a fourth quarter bottom. Since then, however, the...   READ MORE 

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Charts of Interest: ADBE, AGU, DE, HSIC, MDT

by Arthur Hill,

Chief Technical Strategist, TrendInvestorPro.com

ADBE Forms Falling Flag after Surge. AGU Forms Bearish Engulfing in Resistance Zone. MDT Breaks Flag/Wedge Resistance with Volume. Plus DE and HSIC...   READ MORE 

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Late Declines Reverse Upswings in SPY and USO

by Arthur Hill,

Chief Technical Strategist, TrendInvestorPro.com

Indicators settings confront chartists with a conundrum. The number of periods used for an indicator affects the speed and the number of signals. For example, 20-period RSI will cross the centerline (50) fewer times than 10-period RSI. 20-period Stochastics will become overbought/oversold less often than 10-period Stochastics. There is...   READ MORE 

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SMALL-CAPS SHOW RELATIVE WEAKNESS -- BROKEN RESISTANCE TURNS FIRST SUPPORT FOR XLY -- TECH SPDR FORMS EXHAUSTION GAP -- BASE METALS ETF TURNS DOWN AFTER SHORT BOUNCE -- BASIC MATERIALS SPDR IS HIGHLY CORRELATED TO BASE METALS

by John Murphy,

Chief Technical Analyst, StockCharts.com

SMALL AND MID-CAPS CONTINUE TO SHOW RELATIVE WEAKNESS... Link for todays video. With the August-September trading range, the peaks in late August and mid September established resistance levels for the major index ETFs. The S&P 500 ETF (SPY) edged above these highs with a close above 122 on...   READ MORE 

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Broadcom Triggers Triple Top Breakout on P&F Chart

by Arthur Hill,

Chief Technical Strategist, TrendInvestorPro.com

Broadcom (BRCM) triggered a Triple Top Breakout with a move above the September highs on the P&F chart. The stock shows two resistance levels with two X-Columns peaking in the 37 box. The break above the 38 box also broke the Bearish Resistance Line. More P&F...   READ MORE 

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Stocks Recover Immediately after Weak Open

by Arthur Hill,

Chief Technical Strategist, TrendInvestorPro.com

Stocks continued weak with a lower open on Tuesday, but quickly reversed and moved sharply higher the rest of the day. Selling pressure was limited to the first 30 minutes as the S&P 500 dipped below 1192 by 10AM. Things quickly changed. By 11AM, the S&P...   READ MORE