BIGGEST TECHNOLOGY LEADERS... PeopleSoft (PSFT) and Texas Instruments (TXN) were up significantly today which sparked a rally in technology stocks. PSFT (chart #1) surged over +11% and closed back above its 50-day moving average, which is bullish. The daily Stochastic (below chart) is oversold and turning up which suggests PSFT&... READ MORE
GENERAL DYNAMICS HURTS DEFENSE STOCKS... This morning's high-volume plunge in General Dynamics is taking a toll on defense stocks. That explains today's relative weakness in the likes of Boeing and Northrop Grumman, which have both fallen beneath their 50-day averages. Chart 1 Chart 2 Chart 3... READ MORE
BROKERS BREAK DECEMBER LOW... Brokerage stocks continue to lead the market lower. The Broker/Dealer Index closed beneath its late-December low, and has turned its short-term trend decidedly lower. Last night, we showed Charles Schwab leading the brokerage fall. Merrill Lynch was one of today's biggest lossers. That... READ MORE
MAJOR AVERAGES SHORT TERM OUTLOOK CONTINUES TO WEAKEN... Last week (see Market Messages dated Jan. 17th and 16th), we mentioned the possibility of further market weakness due to the major averages reaching trading range extremes and the failed attempts to penetrate 200-day resistance levels. Today's market weakness provides... READ MORE
BROKERS/DEALER INDEX (XBD) BREAKS KEY SUPPORT... Financial stocks appear to be following in the foot steps of the major averages (see earlier update), which warrants near term caution. Chart #1 shows the Broker/Dealer index (XBD) breaking its 50 & 200-day moving averages on a closing basis, which doesn&... READ MORE
FOUR BIGGEST LOSERS... Four prominent technology stocks are falling heavily this morning. That's weighing on the technology sector and the market in general. All four are gapping lower on relatively heavy trading (and are on the most-active list). The charts pretty much speak for themselves -- and don&... READ MORE
STOCK AND BOND TRADING RANGES... It now appears that bonds and stocks have reached the extremes of their respective trading ranges -- stocks on the upside and bonds on the downside. On a short-term basis, that suggests that stocks should start to weaken while bond prices gain. Chart 1 shows... READ MORE
BTK INDEX TRADES ABOVE 200-DAY INTRA-DAY... Several biotech stocks: DNA, IDPH, MLNM, and MEDI, to name a few, are supporting a rally in the Biotechnology Index (BTK) which is currently trading above its 200-day Moving average intra-day. A close above this resistance level would be positive for the BTK and... READ MORE
J.B. HUNT LEADS TRUCKING RALLY... Dispite the weakness in the major market averages, trucking stocks: J.B. Hunt (JBHT), Yellow (YELL), Roadway (ROAD), and CNF Transport (CNF) are rolling ahead. J.B. Hunt (see chart #1) is currently breaking out of the top of a neutral trading range (see... READ MORE
BIG VOLUME LOSERS... The first three charts show some high-volume losers today. On the Nasdaq, QLogic broke moving average support -- on the highest volume in two months. Among retailers, Federated tumbled on very heavy volume -- after failing a retest of its 50-day average. McDonalds also met new selling... READ MORE
SOX LEADS NASDAQ LOWER... In early morning trading, the Nasdaq 100 is the biggest loser among the major market averages. That's being caused mainly by a 2.50% drop in the Semiconductor (SOX) Index. Intel is down today and is meeting resistance at its 50-day moving average. News... READ MORE
CHIP MAKERS FALL ON HEAVY VOLUME... Intel's news that it would cut back on capital spending took a heavy toll on chip equipment makers. Applied Materials was one of the hardest hit. Chart 1 shows AMAT falling under its 50-day averege on heavy volume. Teradyne also fell hard... READ MORE
ALCATEL SPARKS TELECOM RALLY... Telecom stocks: ALA, LU, and NT are dominating today's N.Y.S.E. most actives list. Alcatel (ALA) is leading the group higher with double-digit intra-day gains. ALA gapped above its December peak resistance this morning and is currently trading above its 200-day moving... READ MORE
BKX POISED FOR UPSIDE BREAKOUT?... The Bank Index (BKX) is currently testing a key resistance barrier near the 800 level . Prior attempts to surpass this area have failed. However, in the three prior attempts the BKX was trading under its 200-day moving average. This time the picture looks somewhat brighter.... READ MORE
TECHNOLOGY BREAKS 200-DAY LINE... The Nasdaq 100 achieved its first Friday close above its 200-day average since last March. That's a good sign both for technology and the rest of the market. That's because the market is usually in better shape when technology is showing superior... READ MORE
RETAIL BUYING... Retail stocks are experienceing strong buying today across the board. Abercrombie & Fitch (ANF), one of todays NYSE most actives, is gapping up above its 200-day moving average. The stock appears poised to challenge its December high. Best Buy (BBY) is gapping up. The next level of resistance... READ MORE
NASDAQ RALLIES ON INCREASED VOLUME - 40 WEEK MOVING AVERAGE CHALLENGE... The Nasdaq Composite rallied 2.67% to close above its 40-week (200-Day) moving average. However, a Friday close over the moving average is necessary to validate an upside penetration on the weekly chart. Heavier volume is also encouraging since... READ MORE
KEY TEST OF OVERHEAD RESISTANCE... The Nasdaq market is testing a key resistance barrier at its 200-day moving average. The test is important because the 200-day line is one of the key indicators in determining whether a market is in a bull or bear market. The first chart shows the... READ MORE
ALCOA IS BIGGEST DOW LOSER... Alcoa fell over 10% today -- on very heavy volume. Chart 1 also shows the big aluminum producer falling under previous chart support at its December lows. That breakdown helped set a gloomy tone for the Dow and the rest of the market. If that... READ MORE
ENERGY STOCKS DROP... Energy stocks are down sharply today with stocks in the oil drilling industry experiencing the heaviest selling. Transocean (RIG) appears to have completed a two month topping formation (see shaded area). In addition, the stock has fallen below its November low and the bottom of its neutral... READ MORE
EMC AND ORCL RALLY ON MASSIVE VOLUME... EMC surged up today to close above its 200-day moving average on massive volume and appears poised to challenge its December high (see circle). The RSI line (above chart) is trending upward. The MACD histogram (below chart) has turned positive, which reverses the... READ MORE
FINANCIALS ARE STRONG... The Financials Select Sector SPDR is one of the day's strongest performers. Prices have climbed to a new monthly high -- and are nearing a test of the November high -- and 200-day moving averages. Banks and brokers are the two strongest groups. The Broker/... READ MORE
BANKS AND UTILITIES SHOW BIG GAINS... The presidential plan to eliminate taxes on dividends gave a big boost to dividend-paying stocks today. Among the biggest beneficiaries were banks and utilities. The Bank Index is within striking distance of its August/November highs. The BKX also closed above its 200-day average... READ MORE
SOME MONTHLY SIGNALS ARE POSITIVE -- EXCEPT MACD LINES... What better time to review the market's longer range trend than the start of a new year - and after three years of decline. We think the best way to do that is to look at monthly charts --... READ MORE
NASDAQ'S MOST ACTIVES - CSCO, INTC, AND MSFT LEAD TECHS HIGHER... Today's NASDAQ rally is being lead by the following top five most actively traded technology stocks: Cisco, Intel, Sun Microsystems, Microsoft, and Oracle. Cisco is currently sandwiched between its 50 and 200-day moving averages (see... READ MORE
DOW, NASDAQ, S&P 500 SURGE ON BELOW AVERAGE VOLUME... Today's broad based market rally is the best new year start we've seen in 15 years. (Historically, January 4th, 1988 was the last time the market had such a robust start.) The Dow marched ahead... READ MORE