Hello Fellow ChartWatchers! We are now halfway through our current plan for adding more value to every StockCharts.com subscriber's membership. Two weeks ago, we doubled the amount of chart storage that Extra members get and we drastically increased the "freshness" of our Scan Engine results.... READ MORE
Despite weakness in the Euro and European debt concerns, we have yet to see significant weakness or a breakdown in the DJ Euro Stoxx 50 ($STOX5E). This index is the Dow Industrials of Europe. There are 50 stocks representing 9 countries and 18 industry groups. French and German stocks dominate... READ MORE
According to our mechanical timing models, as well as my conclusions through visual analysis, we are in a bull market, a cyclical bull market, which refers to the bull/bear cycle that occurs about every four years. A subscriber wanted to know if we were also in a secular bull... READ MORE
After dipping earlier in the week, Nasdaq and NYSE 52-week highs bounced back with a surge on Thursday. A list of these market leading stocks is posted every day on the pre-defined scans page. There were 75 new highs on the Nasdaq and 91 on the NYSE. You can also... READ MORE
ALTERNATION SUGGESTS FLAT WAVE 4 FOR S&P 500... Link for todays video. The S&P 500 has a five wave advance working since the July low. Wave 1 extends from the July low to the early August high. Wave 2 extends down to the late August low.... READ MORE
Even with a rather sharp setback the last two weeks, the indicator summary remains positive. Some indicators were on a verge of a change, but Thursday's rebound in the stock market kept them in bull mode. In particular, the volatility indices were on the verge of resistance breakouts... READ MORE
The Euro got an oversold bounce and bonds moved lower. Stocks also got an oversold bounce, but did not do much after the opening gap. SPY broke channel support with a gap down and long red candlestick on Tuesday. The ETF was oversold after this decline and firmed with a... READ MORE
Even though there is not any real historical data for GM, keen chartists can start with the 1-minute and 5-minute charts for the first technical signals. On the 5-min chart, GM is clearly in a downtrend as it trades below the trendline extending down from 10:45AM. This trendline and... READ MORE
MUNIS TUMBLE... We've been showing the upward trend in bond yields since the Fed's latest QE2 package was announced last week. We've also shown the drop in bond prices, especially Treasury bonds and notes. The bond category that's been hit the hardest... READ MORE
Before hitting the charts, note that EU and IMF officials flew into Dublin (Ireland) today in an effort to convince Irish officials to accept a bailout. The Euro is quite oversold after a sharp decline from 142 to 134 (4.2%) and ripe for a bounce that could retrace a... READ MORE
AEO Forms Falling Flag. CHS Gaps above Triangle Resistance. MMM Firms at Key Retracement. Plus CX, EK, SEE ----------------------------------------------------------------------------- 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
With a gap up, consolidation and gap down over the last two weeks, the Russell 2000 ETF (IWM) forged an island reversal. Notice that there were no trades around 71.8 with the gap up and no trades at this level with the gap down. IWM needs to fill the... READ MORE
RETAIL SPDR REMAINS RELATIVELY STRONG WITH FALLING FLAG... Link for todays video. The Retail SPDR (XRT) declined with the rest of the market over the prior six days, but bounced on Wednesday and shows relative strength overall. Chart 1 shows XRT breaking resistance with a gap above the October highs.... READ MORE
With a sharp decline on Tuesday, the bulk of the short-term evidence has turned bearish. First, three of the four short-term breadth indicators moved into bear mode. These were featured in Monday's commentary. Second, RSI on the 60-minute chart broke below 40 last week and CCI on the... READ MORE
With a sharp decline the last eight days, the Dow Industrials SPDR (DIA) filled the early November gap and broke the channel trendline. Also notice that the Commodity Channel Index (CCI) moved to its lowest level since September 1st. The combination indicates a corrective period unfolding. Click this image for... READ MORE
FALLING EURO SUPPORTS DOLLAR UPTURN... Stocks and commodities are in retreat today and a lot of the reason has to do with trends in currency markets -- especially the Euro and the dollar. Chart 1 shows the Euro slipping below its 50-day moving average for the first time in two... READ MORE
The Euro and US Treasuries were hit again on Monday, but both are getting short-term oversold and ripe for a bounce. Even an oversold bounce in these two could provide a boost for stocks. On the daily chart, SPY is trading near the lower trendline of the rising price channel,... READ MORE
$HD and $LOW Show Relative Weakness. $DTV Forms Bear Flag. $NUE Fails at Resistance. Plus $BG and $MOT 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
BOND ETF TESTS KEY SUPPORT LEVEL... Link for todays video. The 7-10 year Bond ETF (IEF) is testing its October low with weakness on Monday. Chart 1 shows IEF hitting resistance around 100 twice since early October. A small double top is taking shape with support at 97.52, which... READ MORE
FINANCIALS HOLDING SUPPORT... Financial stocks are leading a rally attempt on Monday. And it's coming at a good time for that sector. Chart 1 shows the Financials Sector SPDR (XLF) bouncing off chart support along its recent breakout point near 15.00. One of the rules of charting... READ MORE
With a 10+ percent advance the last 11-12 weeks, the Energy SPDR (XLE) is trading near the upper trendline of a broadening formation. The swing within this formation is up as XLE remains above the green trendline and Williams %R remains in overbought territory. A trendline break and move below... READ MORE
The Euro and US Treasuries are moving lower, which means the Dollar and US interest rates are moving higher. With these negatives weighing on the stock market, SPY declined around 2% last week. This was the biggest weekly decline since early August. On the daily chart, the ETF fell to... READ MORE
Breadth took a hit last week, but my short-term breadth indicators have yet to turn bearish. The next four charts show the 10-day SMA for Net Advances and Net Advancing Volume for the Nasdaq and NYSE. These indicators oscillate above/below the zero line. However, I add a buffer by... READ MORE
SPY FORMS BEARISH HARAMI AT RESISTANCE... Link for todays video. With a weak open on Monday and decline throughout the week, the S&P 500 ETF (SPY) and the Dow Industrials SPDR (DIA) formed bearish harami patterns. These candlestick reversals form when the current candlestick body is inside the... READ MORE
The Technology ETF (XLK) remains in bull mode as it trades above a green cloud and the Tenkan-sen (Conversion Line) holds above the Kijun-sen (Base Line). The Tenkan -sen (blue) is the average of the 9-day high-low range. The Kijun-sen (red) is the average of the 26-day high-low range. The... READ MORE
The indicator summary remains firmly positive, but weakness in the technology and industrials sectors caused me to downgrade two of the ten indicators. These downgrades were simply from bullish to neutral. A few days of weakness is not enough to change the overall picture. The market remains in bull mode,... READ MORE
The Finance SPDR (XLF) broke resistance with a big surge last week and broken resistance now turns into the first level to watch for support. This is a basic tenet of technical analysis (broken resistance/support turns into support/resistance). Click this image for a live chart... READ MORE
After breaking triangle resistance at the beginning of November, the Euro Currency Trust (FXE) gave it all back and broke support from the late October lows. This reversal of fortune is quite amazing. Since the surge above 142 late last week, FXE has fallen over 4% in six trading days.... READ MORE
With 30-year Treasury yields moving higher, the interest rate sensitive utilities sector may start feeling the heat. In contrast to the S&P 500, the Utilities SPDR (XLU) peaked in October and formed a lower high in November. The price relative confirms weakness as it moved to a new... READ MORE
BROKEN RESISTANCE TURNS FIRST SUPPORT FOR XLB, XLK AND XLP... Link for todays video. One of the basic tenets of technical analysis is that broken resistance turns into support. The inverse is also true. A resistance level represents an area of supply. A break above resistance signals that demand has... READ MORE
Charts: AET, AFFX, DELL, HD, PDCO, PRU ----------------------------------------------------------------------------- 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 think for ourselves when it comes to trading our own... READ MORE
SPY remains in an uptrend on the daily chart with a rising price channel over the last eight weeks. After surging above 122 last Thursday and then stalling for two days, the ETF formed a bearish engulfing pattern on Tuesday. However, there was no follow through as the ETF recouped... READ MORE
Allegheny Technologies (ATI) formed an evening star over the prior three days. This bearish reversal pattern consists of three candlesticks: a long white candlestick, a small body candlestick and a long red candlestick to complete the reversal. The predefined scans page showed 14 such patterns forming on the NYSE and... READ MORE
FINANCIAL SPDR BREAKS OUT... Financial stocks have finally turned up. Chart 1 shows last Thursday's upside breakout in the Financials Sector SPDR (XLF) and on rising volume. In fact, financials went from the market's weakest to the strongest group for the week. The jump in financial... READ MORE
It is always difficult to pick the exact cause of an advance or decline in stocks, but the positive correlation between the Euro and stocks has been quite strong this year. The Euro Currency Trust (FXE) extended its three day slide with a move below 137.5 on Tuesday. Actually,... READ MORE
BA consolidates above breakout. BG forms pennant after engulfing. HOLX traces out a triangle. CTXS stalls near key retracement. ERTS surges off support with good volume. GCI gaps off support with good volume. MON forms harami cross at resistance. SEE forms rising wedge after sharp decline. ----------------------------------------------------------------------------- This commentary and... READ MORE
2010 is going to be known as the year of the hard assets. The PerfChart below shows the S&P 500, Silver, Gold, Oil, the Dollar and the Euro. Stocks are up, but lagging the three commodities. Both the Euro Index and the Dollar Index are down for the... READ MORE
RISING CHANNEL OFFERS YEAREND GOLD TARGET... Link for todays video. Gold continued its recent surge by moving above $1400 on Monday. Silver and platinum also moved higher. Gold hit an all time high on the Comex, while silver traded at a 30 year high. Precious metals remain hot as an... READ MORE
With the Euro taking a big hit on Friday-Monday, bullish resolve in the stock market will be tested right off the bat this week. The Dollar strengthened for three reasons. First, the employment report showed strong job creation, which is positive for the economy and puts upward pressure on interest... READ MORE
The ability of any stock index or group to clear its April high is a sure sign of strength. In case you haven't noticed, the Semiconductor Holders are doing just that today. I point that out because, up until a couple of months ago, chip stocks were market... READ MORE