* Short-term indicators continue to decline, but Wednesday’s price action may cause them to go bullish. * Small caps starting to emerge as leaders on the upside (At least for the short-term). * Quality bonds experience probable upside blow-off and high yield exhaustion on the downside . Earlier in the week I pointed... READ MORE
FOREIGN WEAKNESS FINALLY HITS THE U.S.... It took awhile for it to happen, but tumbling foreign markets have finally pulled the U.S. market into a downside correction. The three lines in Chart 1 tell the story. The blue line shows EAFE iShares (EFA) peaking at the start of... READ MORE
* Global equities experience long term technical damage. * But short-term indicators are close to signaling a tradable rally. * Bond market still looks strong. * Gold experiences marginal upside breakout against stocks. US Equities Last week I described how some serious long-term technical damage had been done to global equities but that a... READ MORE
S&P 500 BREAKS KEY MOVING AVERAGE ... Link for today's video. The S&P 500 is not in uncharted territory, but it is in territory we have not seen in some time. Chart 1 shows the index breaking below its 200-day moving average, breaking its prior... READ MORE
SPX TESTS A KEY MOVING AVERAGE... Link for today's video. Selling pressure and volatility have dominated October, but some sectors and industry groups are holding up better than others. How can we find the strong groups and avoid the weak? The next few charts will show four methods... READ MORE
MARKETS REMAIN IN RISK-OFF MODE... Link for today's video. The markets continue to shun risk and embrace safety, which means the markets are in risk-off mode. There are several metrics to we can use for this assessment. First, small-caps have broken down and are underperforming large-caps. The S&... READ MORE
* Oversold short term condition could trigger a bounce... but remember this is October! * Five year yield experiences false upside breakout. That signals lower yields * Gold bounces from a must hold support level. (Click here for the Video Version of this article.) US Equities In the last week some serious long-term... READ MORE
* Oversold short term condition could trigger a bounce... but remember this is October! * Five year yield experiences false upside breakout. That signals lower yields. * Gold bounces from a must hold support level. Click here for the Print Version Good luck and good charting, Martin Pring... READ MORE
QQQ AND SPY TEST THEIR GAPS ... Link for today's video. The S&P 500 SPDR (SPY) and Nasdaq 100 ETF (QQQ) forged intraday reversals last Thursday and followed up with gaps on Friday, but the bulls are getting cold feet already because both fell back into their... READ MORE
SEASONAL PATTERNS START TO GET INTERESTING... Link for today's video. StockCharts users can analyze seasonal patterns using the Seasonality Tool. This tool creates a histogram chart showing the percentage of times a security gained and the average gain/loss overall. Before getting into the current seasonal patterns, note... READ MORE
S&P 500 MAINTAINS ITS LONG-TERM UPTREND... Link for today's video. Even though the S&P Small-Cap 600 and S&P MidCap 400 are underperforming and have stalled for several months, the S&P 500 remains in a clear uptrend and over 50 points... READ MORE
SMALL CAP HEAD AND SHOULDERS TOP?... A debate is going on within the technical community as to whether or not the Russell 2000 Small Cap Index is in danger of completing a "head and shoulders top". A case can certainly made for it, although it would be an... READ MORE
SMALL CAPS FALL BELOW AUGUST LOW -- MIDCAPS MAY BE NEXT... Arthur Hill and myself have been warning of a potential breakdown in smaller stocks, and the potential damage that could do to the rest of the stock market. That situation has gotten even worse. Chart 1 shows the Russell... READ MORE
* Negative divergences in the equity market continue to build. * The rest of the world (EFA) completes a head and shoulders top. * Credit spreads continue to deteriorate. * Some commodity indexes break down in a major way, others hold fast. US Equities In our last issue my basic conclusion on equities was... READ MORE
UTILITIES SECTOR RETURNS TO THE LEADERBOARD... Link for today's video. The Utilities SPDR (XLU) is leading the market over the last two days and its StockCharts Technical Rank (SCTR) is improving. Chart 1 shows XLU trading flat since April as it oscillated around the 42 level for several... READ MORE
DIA AND QQQ HOLD UP THE BEST... Link for today's video. Most of the major index ETFs broke below their mid September lows with sharp declines last week, but the Dow Diamonds (DIA) and the Nasdaq 100 ETF (QQQ) held these lows and show relative strength. The Dow... READ MORE
HOW FAR CAN THE S&P 500 CORRECT?... Link for today's video. The S&P 500 is down less than 3% from its all time high and still in a long-term uptrend. Even though this week's decline could extend, it would take a lot... READ MORE
NASDAQ AND S&P 500 BREAK 50-DAY LINES... Chart 1 shows the S&P 500 SPDRS closing below its 50-day line today in heavy trading. That's a negative combination. Chart 2 shows the Nasdaq Composite Index doing the same. Their daily MACD lines remain decidedly negative.... READ MORE
* Small cap stocks on the verge of a major breakdown. * Gold shares violate important up trend line. * Dollar Index due for a correction within a primary bull market. Click here for the video version. For the last few weeks I have been pointing out the gradually deteriorating technical position but... READ MORE
This is the video version of the Market Roundup. * Small cap stocks on the verge of a major breakdown. * Gold shares violate important up trend line. * Dollar Index due for a correction within a primary bull market. Click here for the print version. Good Luck and good charting, Martin Pring... READ MORE
THE STOCK RALLY IS GETTING NARROWER... Arthur Hill wrote about the negative divergence between small and micap stocks relative to large cap stocks. Let's put that in some perspective. Chart 1 shows that the three stock categories have been rising together since the 2009 bottom (as they usually... READ MORE
SCANNING FOR PULLBACKS WITHIN AN UPTREND... Link for today's video. As noted on Monday, stocks have weakened this month with small-caps leading the way lower. However, with most of the major indices hitting new highs recently, I still classify these declines as corrections within a bigger uptrend. I... READ MORE
SMALL-CAPS CONTINUE TO UNDERPERFORM... Link for today's video. September continues to be a rough month for mid-caps, small-caps, micro-caps and some of the high-beta groups. Overall, we have a bifurcated market with relative strength in large-caps and relative weakness in the other caps. Don't forget that... READ MORE
SETTING A YEAREND TARGET FOR THE S&P 500... Link for today's video. The S&P 500, S&P MidCap 400 and S&P Small-Cap 600 are all in uptrends, and the S&P 500 remains the clear leader. Even though one can... READ MORE
RISING RATES HELP INSURANCE PORTFOLIOS... Financial stocks are starting to show upside leadership at the same time that bond yields are starting to rise. Banks usually benefit from rising bond yields because they can charge higher rates for their loans. Two other financial groups have actually done better than banks... READ MORE
DOW INDUSTRIALS JOIN TRANSPORTS IN NEW HIGHS... Chart 1 shows the Dow Transports hitting another record high today, and remaining the strongest of the three Dow averages. Today's rally was led by rails and delivery services. Fedex gained 3.5% to lead the latter group higher. Chart 2... READ MORE
* - Brokers experience new bull market closing high. * - NYSE stocks above their 200-day MA’s continue to shrink. * - Canadian dollar experiences false break to the downside. * - Commodities break to the downside. Could it be a whipsaw? US Equities Tuesday’s strong equity action could well be a... READ MORE
DOW AND S&P 100 HOLD UP THE BEST... Link for today's video. After a big advance in August, stocks succumbed to some selling pressure in September. This selling pressure, however, has not been uniformly spread throughout the stock market. As noted in Monday's Market... READ MORE
SMALL-CAPS LEAD THE MARKET LOWER ... Link for today's video. The Russell 2000 iShares (IWM) and the S&P SmallCap iShares (IJR) are showing relative weakness in September and leading the current correction. There may be some debate on the term "correction" though. The S&... READ MORE
MORE CURRENCY WEAKNESS... My mid-week message on the broadbased nature of the U.S. dollar rally showed a number of falling currencies, including the Euro, the Swiss franc, the British Pound, the Japanese yen, and the Canadian Dollar. Chart 1 adds two more. The blue line shows the Swedish Krona... READ MORE
NIKKEI HITS SEVEN MONTH HIGH... Link for today's video. Despite some stalling over the last few weeks, the major stock indices remain in long-term uptrends. The S&P 500, S&P 500 Equal-Weight Index and the S&P 1500 all hit new highs in early... READ MORE
ANOTHER WAY TO LOOK AT YIELD CURVE... My Wednesday message included a paragraph on the yield curve. One of the charts, however, overlaid the 2-year and 10-year Treasury yields on the same chart. I was trying to show that short-term rates were rising, while long-term yields were dropping. That chart,... READ MORE
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* Equity market short-term momentum starting to roll over but not yet bearish. * Dollar Index fails to respond to overbought short-term condition, which is a sign of a primary bull market. * Gold experiencing very constructive sentiment but needs to confirm this with a break in the GLD above $130. (Click here... READ MORE
DOLLAR RALLY IS VERY BROADBASED... The U.S. Dollar has become the strongest currency in the world. Although a lot of the attention has focused on the plunge in the Euro, the fact is that all major currencies are falling against the dollar, as shown in Chart 1. Two of... READ MORE
A MOMENT OF TRUTH FOR SMALL-CAPS... Link for today's video. Small-caps have been lagging large-caps for some time now, but the S&P SmallCap iShares (IJR) and the Russell 2000 iShares (IWM) have yet to break down and actually weigh on the stock market. Chart 1 shows... READ MORE
METALS & MININGS SPDR FAILS TO HOLD BREAKOUT... Link for today's video. Metals and mining stocks are getting hit hard on Monday. Gold, silver and platinum were down around 1% in afternoon trading. Elsewhere, iron-ore prices hit five year lows this month. Overall, gold is trading some $600... READ MORE
RUSSIAN RALLY HELPS EUROPEAN STOCKS... Expectations for a cease-fire in Ukraine gave a big boost to Russian stocks as well as European stocks closely tied to Russia. Chart 1 shows the Market Vectors Russia ETF (RSX) climbing 6% during the week to close just above its 200-day moving average average.... READ MORE
SPY CONTINUES TO LEAD AND TREND HIGHER... Link for today's video. Stocks stalled over the last two weeks, but the overall trends are up for the major index ETFs. Keep in mind that stocks were short-term overbought at the end of August because the S&P 500... READ MORE
* Short-term equity rally is still intact. * Dollar Index experiences major upside breakout. * Commodities experience a very favorable divergence but the DJP needs to break above $37 to confirm. US Equities Last week we talked about the fact that the S&P had broken out to new highs but that,... READ MORE