The High-Yield Bond SPDR (JNK) broke major support along with the S&P 500 in early August and then rebounded the last five weeks. This rebound formed a rising wedge and retraced 61.80% of the prior decline. Even though the 5-week trend is up, retracement resistance and the... READ MORE
IWM AND SPY FORM RISING FLAG PATTERNS ... Link for todays video. Price action remains quite choppy for stocks over the last five weeks. In particular, the Russell 2000 ETF (IWM) has had five swings of at least 5% in the last five weeks. These swings, which were based on closing... READ MORE
A better-than-expected ISM Services report and oversold conditions gave way to a post-open bounce on Monday. The Nasdaq 100 ETF (QQQ) closed a penny higher, but the rest of the major index ETFs closed with small losses. Eight of the nine sectors were down. Only the Healthcare SPDR (XLV) managed... READ MORE
Stocks rebounded after a sharply lower open on Tuesday, but remain in negative territory overall. Amazon (AMZN) is bucking this trend with a 2+ percent gain. Gaining in the face of weakness shows relative strength. Click this image for a live chart.... READ MORE
US DOLLAR INDEXES SURGES TO SIX-WEEK HIGH ... Besides today's selling in stocks, the most notable feature of the day's trading was the 1.74% surge in the U.S. Dollar Index. Chart 1 shows the Bullish Dollar ETF (UUP) surging to the highest level since mid-July... READ MORE
DAX AND BOND YIELDS HIT NEW LOWS... European stocks fell sharply on Monday (while U.S. markets were closed) and are weak again today. Chart 1 shows the German DAX Composite, which is largest market in Europe, falling to another 52-week low. Given its strong correlation to the U.S.... READ MORE
The financial markets are rather chaotic this morning. I say this because there was a dramatic about-face around 4AM ET when the Swiss National Bank announced a "floor" for the Euro. In effect, the Swiss said they would not tolerate a Euro/Swiss rate below 1.20 (1.... READ MORE
EUROPEAN STOCKS FALL ... This morning's weak employment report is having a negative impact on global stock markets. European stocks are down 3%. Chart 1 shows the German DAXto be the weakest of the three after having achieved a feeble rally over the last month. Chart 2 shows the... READ MORE
It is a concept that we stress on a periodic basis, and we got another illustration this week. Technical indicators must be interpreted within the context of the overall market trend. On August 17 the S&P 500 Index 50-EMA crossed down through the 200-EMA, declairing by our definition... READ MORE
Wednesday at noon, the Dow Jones and NASDAQ were both testing critical resistance. Here's an excerpt from my daily Market Chatter mailed out close to noon EST on Wednesday: "We certainly don't like the action thus far today. A rather significant reversal is possibly underway... READ MORE
Hello Fellow ChartWatchers! Last month, we announced the opening of a new User-to-User help website called "s.c.a.n." - the StockCharts Answer Network. Hopefully, you've had a chance to check it out - if not, I strongly encourage you to do so. s.c.... READ MORE
The Euro Currency Trust (FXE) opened strong on Monday, but moved lower throughout the week and closed near its low for forge an outside reversal. An outside reversal occurs when the high is above the prior high and the low is below the prior low. A close below the prior... READ MORE
Even though the Gold Miners ETF (GDX) is underperforming gold, it is outperforming the stock market and hitting a fresh 52-week high. The GDX:GLD price relative remains in a downtrend, but the GDX:SPY price relative broke out in July to start an uptrend. After hitting resistance in the... READ MORE
DIA FORMS ISLAND REVERSAL WITHIN BEARISH WEDGE... Link for todays video. Chart 1 shows that classic technical analysis is alive and well for the Dow Industrials SPDR (DIA). First, the ETF formed a Double Top and confirmed this pattern with a break below the intermittent low. A major bearish reversal... READ MORE
EUROPEAN STOCKS FALL ... This morning's weak employment report is having a negative impact on global stock markets. European stocks are down 3%. Chart 1 shows the German DAX to be the weakest of the three after having achieved a feeble rally over the last month. Chart 2 shows... READ MORE
There is no change in the indicator summary. Many indicators improved over the last few weeks as the major index ETFs broke above their mid August highs. However, this improvement looks like a bear market rally. Net New Highs recovered with a move back to the zero lines. The Bullish... READ MORE
After an ISM pop in the morning, stocks were hit with a dose of selling pressure and closed weak. Even though the ISM Index was better-than-expected, it was still weak overall and at a two year low. Anything above 50 indicates expansion, but a reading of 50.6 indicates little... READ MORE
High flyer Lululemon (LULU) surged over 20% the last seven days, but hit a resistance zone around 57 with a Dark Cloud pattern. Notice that this area also marks a 61.80% retracement of the July-August decline. A move below the gap at 53 would confirm the Dark Cloud pattern.... READ MORE
AGRICUTURAL MARKETS SHOW COMMODITY STRENGTH ... With all of the recent focus on the trend of commodities like gold and oil, it shouldn't go unnoticed that agricultural commodities turned up sharply during August. Perhaps the best known vehicle for trading that commodity sector is the Power Shares DB Agricultural... READ MORE
The bulls weakened a bit on Wednesday, but stocks still managed gains overall. There were pockets of weakness with the Russell 2000 ETF (IWM) and Technology ETF (XLK) edging lower. The Finance SPDR (XLF) continued its run with a 1.29% gain to lead all sectors. Semis were under pressure... READ MORE
CHS Retraces 50% with Rising Wedge. IBM Stalls Near Mid August High. KSS Forms Triangle within Downtrend. Plus ANF, FL, MON 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
The Technology ETF (XLK) surged to its mid August high and formed a bearish engulfing. Resistance in this area is also marked by broken support. The bearish engulfing has yet to be confirmed though. Look for further weakness below 24 to confirm. Click this image for a live chart... READ MORE
SPX BREAKS BELOW 12-MONTH MOVING AVERAGE... Link for todays video. Long-term signals require long-term charts. Chart 1 shows monthly bars for the S&P 500 and the 12-period simple moving average. Over the last 17 years, there were five good crosses (signals) and at least two whipsaws (blue ovals)... READ MORE
The bulls held up well in the face of a bad consumer confidence report. August consumer confidence hit a two year low. Even though consumer confidence is a lagging indicator, there are fears that this could put pressure on consumer spending. Nevertheless, stocks held on to their gains and the... READ MORE
Looking for stocks that are still in favor? Just mosy over to the pre-defined scan page for a look at the stocks making fresh 52-week highs. There were over a dozen in the Nasdaq and over three dozen on the NYSE. Hot Topic (HOTT) hit a new high after advancing... READ MORE
BANKS AND HOUSING ARE LINKED ... Since banks and homebuilders have been the weakest parts of the market, I decided to take a closer look at how closely they're linked. The answer is "very". Chart 1 compares the PHLX Housing Index (bars) to the PHLX Banking Index... READ MORE
ADM Bounces Along with Grains. ALL Surges on Big Volume. PEP Breaks Triangle Trendline. Plus AMX, CMCSA, NE 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... READ MORE
Stocks continued higher on Monday with another all or nothing day. Net Advancing Volume for the NYSE and Nasdaq hit +94% and +93%, respectively. All major index ETFs were sharply higher with small-caps and mid-caps leading the way. All sectors were also higher with finance leading the charge. It appears... READ MORE
The Sector Carpet shows the finance sector leading the way higher with an aveage gain of 4.2%. Color-wise, this sector shows lots of dark green, which means many stocks were up sharply. The consumer discretionary was second with an average gain of 3.5%. On the live carpet, users... READ MORE
SMALL AND MID-CAPS LEAD STOCKS HIGHER... Link for todays video. Stocks extended last weeks rally with strong gains on Monday. The appetite for risk reappeared as small-caps and mid-caps led the way higher. Chart 1 shows the Russell 2000 ETF (IWM) advancing over 4% with a surge above 72 today.... READ MORE
Stocks started weak ahead of Bernanke's speech, but rallied afterwards and closed relatively strong. Bernanke did not offer a QE3 and the speech produced little drama, which is just what the bulls needed. In fact, the reversal from 10AM to 12PM was quite strong. Breadth was decidedly negative... READ MORE
The Euro Currency Trust (FXE) seems to like what it heard from Fed Chairman Bernanke - and the Dollar did not like it. After dipping below 143 in the morning, FXE surged above 144 by mid day. The ETF is still just shy of a breakout. Look for a move... READ MORE
SPY FORMS TRIANGLE WITHIN DOWNTREND... Link for todays video. After sharp declines in late July and early August, stocks have been moving sideways the last 3-4 weeks. This is pretty normal because stocks were quite oversold on August 8th, which is when the S&P 500 ETF (SPY) first... READ MORE
There is no change in the indicator summary as the major index ETFs consolidate after their big breakdowns. New lows continue to outpace new highs. The volatility indices remain at high levels, which reflects a great amount of fear in the market place. Small-caps remain relatively weak as the $RUT:... READ MORE
Stocks opened strong on the heels of Warren Buffet's $5 billion investment in Bank of America (BAC). However, stocks did not finish strong. Neither did BAC or the other big banks. Selling pressure took hold after this strong open and stocks closed down. The major index ETFs lost... READ MORE
Thursday's announcement that Warren Buffet will invest $5 billion in Bank of America (BAC) sent the Finance SPDR (XLF) sharply higher on the open. XLF opened above 13 and surged above 13.2 in the morning. These gains quickly evaporated as sellers returned. This failure reinforces resistance from... READ MORE
GOLD MINERS FAIL TEST OF HIGHS... On Tuesday I showed the Market Vectors Gold Miners ETF (GDX) hitting a new four-month high which set up a test of its late 2010 and spring 2011 peaks. Chart 1 shows that test of prior resistance at 64 failed this week as miners... READ MORE
A late rally saved the day for the bulls as the major index ETFs closed strong. The S&P 500 ETF (SPY) and Russell 2000 ETF (IWM) led the way higher with gains around 1.5%. The Nasdaq 100 ETF (QQQ) lagged with a gain that was less than... READ MORE
GLW Forms Small Wedge After Surge. MRVL Forges One Day Island Reversal. YHOO Consolidates After Mid August Surge. Plus CVS, FNSR, TAP, WFR 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... READ MORE
The Investment Grade Corporate Bond ETF (LQD) tumbled for the third straight day and broke below its August low. This ETF formed a lower high in late August as the 20+ year Bond ETF (TLT) formed a higher high (red line chart). Investment Grade Corporate Bonds are weak relative to... READ MORE