There is no change on the daily chart as SPY affirmed support at 133 with a bounce over the last few days. On the 60-minute chart, SPY pulled back rather sharply after the breakout surge last week, but ultimately held support and moved above 135.5 today. The short-term trend... READ MORE
QQQ AND IWM ESTABLISH IMPORTANT SHORT-TERM SUPPORT... Link for todays video. With a bounce over the last few days, the Nasdaq 100 ETF (QQQ) and Russell 2000 ETF (IWM) established important short-term levels to watching going forward. It is important to realize that major trend reversals occur in stages. A... READ MORE
After becoming oversold last week, the DB Commodity Index Fund ($DBC) bounced off support with a long white candlestick. Notice that an inverted hammer formed on Friday as RSI dipped below 30 (oversold). Broken support turns into the first resistance area around 30.50. Click this image for a live... READ MORE
ADBE Breaks Wedge Trendline. CPWR Consolidates after Gap. FISV Forms Pennant after Sharp Decline. AAPL, AMKR, FISV, JBL, SSP, SYK, TIN *********************************************** 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
There is no real change on the daily chart as SPY continues to firm at broken resistance, which turns into support. The ETF formed two spinning tops on Thursday-Friday and a small white candlestick on Monday. The bounce was rather feeble, but support is holding nonetheless. So far the breakout... READ MORE
The Energy SPDR (XLE) is still one of the leading sectors in 2011, but the ETF has started showing relative weakness over the last 30 trading days. The PerfChart below shows XLE as the weakest of the nine sectors since March 25th. All sectors are up, but XLE is down... READ MORE
SPY declined to support and firmed with two spinning tops at the end of the week. These candlesticks have relatively long shadows with a small body. The shadows represent the high and low, while the body represents the open and close. Even though SPY firmed with these spinning tops, we... READ MORE
Hello Fellow ChartWatchers! Believe it or not, StockCharts.com was founded 12 years ago on May 15th, 1999. To celebrate, we are running our Spring Special from now until the end of May. What is our "Spring Special"? I'm so glad you asked... From now until... READ MORE
It was a little more than one year ago - in April 2010 - that I began warning about a potential top approaching. We now know what happened in May and June of that year. Well, the warning signs are mounting again and, barring technical changes, we could be in... READ MORE
Bonds have benefited from the plunge in commodities. Several bond ETFs have rallied to the highest levels in months. Rising bond prices are pushing bond yields lower. And that may be a warning for stocks. That's because bond yields (which are a barometer of economic strength) have been... READ MORE
On Monday, May 9, Citigroup (C) stock will undergo a 10-for-1 reverse split. What this means is that 10 shares of C will be merged into one share, and holders of C will own one-tenth as many shares, but each share will be worth ten times the value of pre-split... READ MORE
The Oil Service HOLDRS (OIH) is leading the energy sector lower with a break below the March lows. There are two bearish patterns working on the OIH price chart. First, OIH hit resistance in the 162.5-167.5 area with three reaction highs and then broke below support with a... READ MORE
The bulk of the evidence remains bullish, but there are signs of dissent brewing out there. The bulls control the trends as the major index ETFs hit new highs in April. The AD Volume Lines are also strong and the Net New Highs Lines have yet to break down. Relative... READ MORE
JOBS REPORT GIVES SPY A BOUNCE OFF BROKEN RESISTANCE... Link for todays video. After a breakout and 52-week high for the S&P 500 ETF (SPY) last week, it was pretty much all down hill this week. SPY opened strong on Monday, but selling pressure quickly took over and... READ MORE
I will wait for Friday's reaction to the employment report before updating the indicator summary. The breadth charts and intermarket charts will also be updated on Saturday morning.... READ MORE
Admittedly, the decline over the last four days has been sharper than expected for a mere pullback. This decline started right after Monday's gap open around 137. On a high to low basis, the ETF moved from 137 to 133 in just four days (almost 3%). And now... READ MORE
With a strong open on Monday and weakness the rest of the week, the S&P 500 ETF (SPY) formed a long black candlestick that engulfed the prior white candlestick. The week is not yet finished because Friday remains. A close below last week's open would forge... READ MORE
COMMODITIES PLUNGE... This morning's message showed a number of commodity ETFs falling below their 50-day lines and warned of a broader selloff in the making. By day's end, the CRB Index had fallen 17 points for the biggest loss in two years. Chart 1 shows the... READ MORE
The Euro Currency Trust (FXE) hit a new 52-week high Wednesday, but gave it all back with a sharp decline early Thursday. As of 11AM ET Thursday, FXE is down around 2% from Wednesday's high. That's quite a drop. Support, however, is near as the ETF... READ MORE
EURO SELLING BOOSTS OVERSOLD DOLLAR... Arthur Hill's Monday message showed the U.S. Dollar Index in oversold territory for the first time in eighteen months. I warned on Tuesday that a dollar bounce would put even more downside pressure on commodities. Commodity selling started in silver and has... READ MORE
SPY continued its throwback with a close below 135 and the third down day in a row. This does nothing to change the medium-term trend, which remains up. The gap and flag breakout started it all and the inverse head-and-shoulders breakout forged a new 52-week high. Broken resistance turns into... READ MORE
AAPL Forms Bull Flag after Breakout. KLAC Firms at Fibonacci Retracement. CSCO Traces out Pennant Consolidation. Plus F, FFIV,MSFT,NTAP. *********************************************** 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
After a bounce off support in April, the Finance SPDR (XLF) came under pressure with a hanging man at the end of April and a bearish engulfing at the beginning of May. These two bearish candlesticks affirm resistance from the early May high. It is possible that a falling flag... READ MORE
ENERGY SPDR FORMS EVE-ADAM DOUBLE TOP... Link for todays video. With two equal highs in April and a support test in May, the Energy SPDR (XLE) has a double top working. Chart 1 shows XLE forming an Adam and Eve Double Top. This particular pattern comes from Thomas Bulkowski, author... READ MORE
SPY followed through on Monday's bearish Belt Hold candlestick with a decline on Tuesday. The ETF dipped all the way to 135, but a late afternoon bounce pushed it back to 135.73 by the close. The decline to 135 was not a very deep dip - yet... READ MORE
After going nowhere for two months, Huntington Bancshares (HBAN) is once again battling consolidation resistance. The stock has been stuck between 6.3 and 6.9 since the beginning of March. With the market down sharply on Tuesday, the stock is showing some resilience with a small gain. A break... READ MORE
NEW SECTOR LEADERS ARE DEFENSIVE ... I've written before about the shift in market leadership away from former leaders -- like energy -- into defensive groups like staples and healthcare. We can add utilities to that defensive list as well. Chart 1 shows the "relative" performance of... READ MORE
Despite a strong open and weak close on Monday, the overall picture for SPY remains unchanged. A bearish Belt Hold formed on Monday. These are long black candlesticks that form after an advance. Neckline resistance from the inverse head-and-shoulders breakout turns into the first support zone to watch on any... READ MORE
ACI Forms Bear Wedge. CAKE Gaps Down from Resistance. GCI Breaks Flag Resistance. Plus BSX,LEN and NFLX. ----------------------------------------------------------------------------- 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
After surging in late February, Chesapeake (CHK) worked its way lower with three bearish engulfings and a dark cloud pattern. The April bounce above 33.5 may be stymied as the stock formed another bearish engulfing on Monday. Check out our bearish engulfing scan for more. Click this image for... READ MORE
BROKEN RESISTANCE TURNS INTO FIRST SUPPORT FOR SPY... Link for todays video. Broken support turns into resistance. This is a basic tenet of technical analysis. Chartists can reverse the rolls because broken resistance turns into support as well. With a big surge the last two weeks, the S&P... READ MORE
It is a strange pairing, but stocks and bonds are both in strong uptrends. We can also throw in strong uptrends for gold, oil and the Euro. The Dollar is the one left out in the cold with a strong downtrend. The rally in bonds is a bit perplexing. QE2... READ MORE
PROJECTING $SPX TARGETS WITH ELLIOTT WAVE COUNT ... Link for todays video. Long-term, the S&P 500 sports three five wave advances of differing degrees. The black Roman numbers show the largest degree wave on the chart 1. Notice that Wave-II was rather shallow and Wave-IV was rather sharp/deep.... READ MORE
Southwest Airlines (LUV) broke support with high volume in late April, but quickly recovered this support break with a surge back above 11.60 the last few days. Despite this quick recovery, signs of indecision are showing with the upper shadows in the candlesticks. There is a resistance zone around... READ MORE
Even though the finance sector remains a laggard, newfound relative strength in technology is picking up the slack. Led by semis, the Nasdaq and the Technology ETF (XLK) surged almost 5% the last seven trading days. Renewed leadership from techs is a positive for the market overall. There is some... READ MORE
There is no change on the daily chart or 60-minute chart as SPY extends after its breakouts. Broken neckline resistance becomes the first support level to watch on the daily chart. Key Economic Reports/Events: Fri - Apr 29 - 08:30 - Personal Income and Spending Fri - Apr... READ MORE
The Dow Industrials, Dow Transports, Dow Utilities and Dow Composite all broke above their March-April highs and recorded 52-week highs this week. From a Dow Theory stand point, the new highs in the Industrials and Transports are especially promising because they affirm the uptrend. Click this image for a live... READ MORE
SILVER PROVIDES NEW SUPPORT POINT... My Tuesday message expressed concern that Monday's high-volume day might have marked a short-term top for silver, and precious metals in general. Those concerns about silver being dangerously over-extended remain. However, renewed weakness in the U.S. Dollar, and Mr. Bernanke's... READ MORE
There is no change on the daily chart. The S&P 500 ETF (SPY) broke above neckline resistance that extends from late February to early April. This is another 52-week high that simply re-affirms the long-term uptrend. Traditionally, broken resistance turns into support. This suggests that the 133-134 area... READ MORE
ASEI Hits Broken Resistance with Wedge. GCI Surges on Big Volume and then Consolidates. PNRA Declines on High Volume. Plus AMCC,IDCC,ISRG,ORLY ----------------------------------------------------------------------------- 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