"An investment in Knowledge pays the best interest." — Benjamin Franklin It's time to revisit a few timeless lessons regarding extended markets. As I write this, the last correction of any significance was in 2022. The past two years have been one heck of a dance if... READ MORE
The Indian equities continued to trade with a corrective undertone as they ended the week on a mildly negative note. Over the past five sessions, the Nifty continued facing selling pressure at higher levels while staying mainly in a range. The markets remained in a very defined trading range and... READ MORE
In this video, Mary Ellen reviews the new uptrend in the S&P 500, and highlights what's driving it higher. She then shares new pockets of strength that are poised to take off, and what to be on the lookout for ahead of next week's... READ MORE
KEY TAKEAWAYS * No changes in top-5 sectors * XLC showing strong break from consolidation flag * XLE remains just barely above XLK as a result of strong daily RRG No changes in the top-5 At the end of this week, there were no changes in the ranking of the top-5 sectors. 1.... READ MORE
KEY TAKEAWAYS * Short term strength drags enery sector up * Long term strength keeps consumer discretionary on top * Massive upside potential ready to get unlocked in EOG I have been traveling in the US since 1/15 and attended the CMTA Mid-Winter retreat in Tampa, FL 1/16-1/17 and then... READ MORE
KEY TAKEAWAYS * While the stronger US Dollar suggests caution for growth stocks, the ratios shows that growth continues to dominate value. * While macro conditions appear beneficial for small cap stocks, large caps are back to a confirmed leadership role. * Measures of offense vs. defensive suggest that investors are favoring offense... READ MORE
In this video, Dave shares five charts from his ChartList of market ratios that investors can use to track changing market conditions through 2025. If you want to better track shifts in market leadership, identify where funds are flowing, and stay on top of evolving market trends, make sure to... READ MORE
I have been expecting a bull market correction for about a month, but it's not been as deep as I expected. Now, however, several indexes have completed small bullish two-bar reversal patterns on the weekly charts. If they work, that would be a characteristic of a bull market,... READ MORE
KEY TAKEAWAYS * Energy replaces Technology in top-5 * Financials rise to #2 position pushing XLC down to #3 * Top-5 portfolio out-performs SPY 0.52% * A closer look at the (equal) weighting scheme Energy Replaces Technology At the end of this week, 1/17/2024, the Technology sector dropped out of the... READ MORE
KEY TAKEAWAYS * Short-term breadth became oversold in mid December. * Stocks surged this week with mid-caps triggering a bullish breadth thrust. * A small bullish divergence preceded the breadth thrust. Mid-caps show leadership and were the first to trigger a breadth thrust. Stocks surged this week with mid-caps showing the highest participation... READ MORE
KEY TAKEAWAYS * The S&P 500 experienced a sudden upside reversal to finish the week right around the 6000 level. * If the market reacts positively to earnings, and Trump's new administration takes a more conservative approach, we could see the S&P 500 reach 6500 by... READ MORE
KEY TAKEAWAYS * Financials represent one of the top sector weights in the IWM, and banks have kicked off earnings season with renewed strength. * A resurgence in biotech stocks, one of the largest industries represented in the IWM, could provide an upside catalyst. * US Dollar strength could adversely impact mega cap... READ MORE
In this exclusive StockCharts video, Joe demonstrates how to use the 1-2-3 reversal pattern as a buy signal on the weekly chart. This approach can be used when the monthly chart is in a strong position. Joe shares how to use MACD and ADX to help when the trendline pattern... READ MORE
KEY TAKEAWAYS * Broader stock market indexes are seeing a lot of choppy activity. * December CPI and bank earnings are on deck and could move the markets. * The interest rate-sensitive banking sector will be impacted by CPI and bank earnings. The December Producer Price Index (PPI) came in cooler than expected,... READ MORE
Will small cap stocks finally take on a leadership role in 2025? In this video, Dave provides a thorough technical analysis discussion of the Russell 2000 ETF (IWM) and how that compares to the current technical configuration of the S&P 500 index. He also shares three charts he&... READ MORE
In this exclusive StockCharts video,Julius takes a look at asset class rotation on Relative Rotation Graphs. He then addresses the 6 sectors that are NOT in the "best five sectors" for this week. To conclude, he dives into the Technology sector to find some of the best... READ MORE
The markets extended their decline over the past five sessions and ended the week in a negative way. While the week started on a bearish note, the Nifty violated a few key levels on higher and lower time frame charts. Along with the weak undercurrent, the trading range widened again... READ MORE
KEY TAKEAWAYS * Stock market indexes end the week lower on concerns of fewer rate cuts in 2025. * Treasury yields rose on strong jobs data. * Strong earnings from Delta Air Lines helped boost airline industry stocks. December non-farm payrolls data came in much hotter than expected. More jobs were added, the... READ MORE
KEY TAKEAWAYS * The break of SPX 5850 suggests further downside in January for the equity benchmarks. * Using price pattern analysis, we can use the height of the head and shoulders pattern to determine potential support around SPX 5600. * We can further validate this downside target using Fibonacci Retracements and moving... READ MORE
KEY TAKEAWAYS * The best five sectors remain unchanged. * XLC and XLF are both starting to show weakness. * XLI is holding above support, while XLK remains within rising channel. The composition of the top five sectors remains unchanged this week, despite an interrupted trading week. This stability comes against a backdrop... READ MORE
S&P 500 earnings are in for 2024 Q3, and here is our valuation analysis. The following chart shows the normal value range of the S&P 500 Index, indicating where the S&P 500 would have to be in order to have an overvalued P/E... READ MORE
In this exclusive StockCharts video,Julius takes a look at what he recently called "The Best Five Sectors" on a relative rotation graph side-by-side with their price charts. He then takes an in-depth at Consumer Discretionary, and shares some interesting stocks within, including AMZN, ULTA, and more. This... READ MORE
In this exclusive StockCharts video, Joe shares how to identify the best entry point by using two timeframes, Moving Averages, MACD and ADX. He shows two different examples of when to pull the trigger. Joe highlights weakness in the Large Cap universe, and finally goes through the symbol requests that... READ MORE
The Long-Term Picture No market goes up forever and, at some point, Bitcoin will top out. It's currently down about 12% from its peak, set on December 17 less than 4 weeks ago, so there is scant evidence at this point indicating a primary bear market. For example,... READ MORE
KEY TAKEAWAYS * Strong Services PMI and more job openings puts inflation narrative back in focus. * Rising Treasury yields put pressure on large-cap tech stocks. * Energy and healthcare stocks saw the biggest gains in Tuesday's trading. What a difference a day makes! December ISM Services data suggests the service... READ MORE
In this video, Dave shares a long-term analysis of the Ten-Year Treasury Yield, breaks down how the shape of the yield curve has been a great leading indicator of recessionary periods and weaker stock prices, and outlines the chart he's watching to determine if early 2025 will look... READ MORE
In today's free DP Trading Room Carl and Erin discuss whether this market rally can get legs and push the market even higher? Mega-caps are looking very positive with the Magnificent Seven leading the charge. Technology is showing new strength along with Communication Services. Carl starts the trading... READ MORE
In this video, Mary Ellen analyzes the divergence between the S&P 500 and the Nasdaq while highlighting some of the areas driving Growth stocks. She also talks about the continuation rally in Energy and Utility stocks and shares which stocks are driving these areas higher. This video originally... READ MORE
KEY TAKEAWAYS * No Santa Claus Rally this year, but the stock market's optimistic price action on Friday lifted investors' moods. * Stocks like TSLA and NVDA had big gains while X, CVNA, and alcoholic beverages had big declines. * Treasury yields and the US dollar remain high, and oil... READ MORE
We monitor the weekly SPY chart and present it to our subscribers every Friday in our DP Weekly Wrap. We have been watching a bearish rising wedge on the weekly chart. The rising wedge pattern implies that you will get a breakdown from the rising bottoms trendline. That is exactly... READ MORE
HAPPY NEW YEAR!!! Ever since the introduction of RRG back in 2011, many people have asked me questions like: "What is the track record for RRG" or "What are the trading rules for RRG"? My answers have always been, and will continue to be, "There... READ MORE
In this exclusive StockCharts video, Joe shares a specific ADX pattern that's signaling potential exhaustion in the momentum right now. Joe analyzes three other market periods that displayed this pattern and the resulting correction which followed. He then discusses some of the most attractive looking cryptos, as well... READ MORE
Most of the time, when we study bars or candlesticks, our attention is focused on daily and intraday charts, since they give early warnings of a possible change in the short-term trend. Nonetheless, it occasionally makes sense to step back and take a look at monthly bars and candlesticks. Not... READ MORE
It's an interesting market day with the market moving lower despite positive seasonality. Natural Gas (UNG) broke out in a big way up over 15% at the time of writing. Is it ready to continue its big run higher? Carl took the day off so Erin gave us... READ MORE
After suffering a brutal selloff in the week before this one, the Nifty spent the truncated week struggling to stay afloat just below the key resistance levels. With just four working days, the Nifty resisted each day to the 200-DMA and failed to close above that point. The trading range... READ MORE
In this video, Mary Ellen highlights whether to buy last week's pullback. She discusses the rise in interest rates and why, as well as which areas are being most impacted. Last up, she reviews potential winners with new Trump policy, how to spot a downtrend reversal, and the... READ MORE
KEY TAKEAWAYS * Short-term breadth becomes most oversold in a year. * Bounce ensues, but has yet to show material increase in participation. * Setting key levels to identify a robust rebound. Breadth became oversold last week and stocks rebounded this week. Is this a robust rebound or a dead cat bounce? Today&... READ MORE
In today's free DecisionPoint Trading Room Carl discusses volume spikes and how we have to analyze big volume spikes carefully to determine whether they express a confirmation of a move or whether they are a special case and do not really provide insight. Carl goes over the signal... READ MORE
After staying in the green following a sharp rebound the week before this one, the markets finally succumbed to selling pressure after failing to cross above crucial resistance levels. The Nifty stayed under strong selling pressure over the past five sessions and violated key support levels on the daily charts.... READ MORE
KEY TAKEAWAYS * The broader stock market indexes closed higher on Friday but lower for the week. * Market breadth continues to be weak despite Friday's rally. * More follow-through next week is required to confirm a reversal and the hope for a Santa Claus rally. A smart investor listens to... READ MORE