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$USD SNAPS OUT OF A DOWNTREND -- THE CURRENCY PITS WERE YELLING YESTERDAY -- $XEU THE EURO HEADS LOWER AFTER A FAILED BREAKOUT -- $COPPER PRINTS A BULLISH OUTSIDE DAY -- $GOLD PULLS BACK LOOKING FOR SUPPORT -- THE BONDS WERE QUIET THROUGH THE FED MEETING

by John Murphy,

Chief Technical Analyst, StockCharts.com

$USD SNAPS OUT OF A DOWNTREND ... The $USD started falling the week after the last Fed meeting. Chart 1 shows a 2 hour chart of the UUP which gives us intraday data for the $USD. The six-week downtrend was relatively smooth and consistent. Two weeks ago, the dollar dropped below...   READ MORE 

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SPY SUCCESSFULLY TESTS FIRST SUPPORT LEVEL -- XLI AND XLY BOUNCE OFF EARLY MARCH LOWS -- XLK LEADS MARKET HIGHER -- MSFT LEADS TECHS HIGHER -- INTEL EXTENDS CONSOLIDATION -- BIOTECH ISHARES BOUNCES OFF SUPPORT ZONE

by John Murphy,

Chief Technical Analyst, StockCharts.com

SPY SUCCESSFULLY TESTS FIRST SUPPORT LEVEL... Link for today's video. The S&P 500 SPDR (SPY) fell sharply last week, but firmed on Friday and bounced off support this week. Chart 1 shows SPY breaking out to a new high with a gap in early March. This...   READ MORE 

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FOREIGN STOCKS LEAD US MARKET LOWER -- SHORT-TERM MARKET CHARTS SHOW DETERIORATION -- UKRAINE TENSIONS WEIGH ON GERMANY -- CHINA WEAKNESS AND RISING YEN WEIGH ON JAPAN -- FALLING BOND YIELDS ALSO HINT AT STOCK WEAKNESS

by John Murphy,

Chief Technical Analyst, StockCharts.com

U.S. STOCKS HAVE A BAD WEEK ... My Wednesday message warned that the Dow Industrials could run into profit-taking near its January highs, and that weekly indicators for the S&P 500 were giving "negative divergences" which also warned of a market pullback. Combined with increased tensions...   READ MORE 

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SPY FILLS THE GAP AND TESTS FIRST SUPPORT -- XLY, XLI AND XLK TEST FIRST SUPPORT LEVELS -- XRT IS STILL AN UNDERPERFORMER -- ITB NEARS IMPORTANT SUPPORT ZONE -- XME FORMS CUP-WITH-HANDLE PATTERN -- TLT AND IEF SURGE OFF KEY MOVING AVERAGES

by John Murphy,

Chief Technical Analyst, StockCharts.com

SPY FILLS THE GAP AND TESTS FIRST SUPPORT... Link for today's video. Stocks fell back this week and finally alleviated some of the short-term oversold conditions that built up in early March. The bulk of the evidence remains bullish for stocks, but the list of concerns grew this...   READ MORE 

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GOLD MINER ETFS ARE ALL THE RAGE -- JUNIOR MINERS ARE NOT CONFIRMING THE $XEU MOVE -- PRECIOUS METAL CHARTS ARE ALL STRONG EXCEPT COPPER -- ENERGY CHARTS ARE WEAKENING � SOFT COMMODITY CHARTS ARE SOARING

by John Murphy,

Chief Technical Analyst, StockCharts.com

GOLD MINER ETFS ARE ALL THE RAGE... On the Top 10 Up ETF tab, the gold miners look particularly strong. The list that is shown in Chart 1 was dominated by precious metal ETF's today. GDXJ represents a flag pattern. It is trying to break out to the...   READ MORE 

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INDUSTRIAL COMMODITIES DON'T PARTICIPATE IN WEATHER-RELATED COMMODITY RALLY -- PLUNGE IN COPPER HINTS AT PROBLEMS IN CHINA -- NEW SELLING IN EMERGING MARKETS BEARS WATCHING -- DOW NEARS A TEST OF JANUARY HIGH -- WEEKLY S&P 500 INDICATORS RAISE CONCERNS

by John Murphy,

Chief Technical Analyst, StockCharts.com

MAJOR DIVERGENCE IN COMMODITY RALLY... I've written several messages about the recent rise in commodity prices. I've also pointed out, however, that most of the commodity gains were in weather-related agricultural markets (and natural gas). From an intermarket perspective, however, weather-related markets have much less impact...   READ MORE 

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CONSUMER STAPLES SPDR MINDS THE GAP -- EQUAL-WEIGHT CONSUMER STAPLES ETF HITS NEW HIGH -- TECHNOLOGY SPDR LAGS ITS EQUAL-WEIGHT COUNTERPART -- PG CHALLENGES RESISTANCE ZONE -- ENERGY SPDR CONSOLIDATES NEAR HIGHS -- XOM AND CVX HIT RESISTANCE ZONES

by John Murphy,

Chief Technical Analyst, StockCharts.com

CONSUMER STAPLES SPDR MINDS THE GAP ... Link for today's video. The Consumer Staples SPDR (XLP) extended its advance with a gap up in early March and an approach to the 2013 highs. Chart 1 shows XLP plunging below support in late January and rebounding sharply in February to...   READ MORE 

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SHANGHAI COMPOSITE FORMS YET ANOTHER LOWER HIGH -- COAL ETF AND INDEX TURN SHARPLY LOWER -- COPPER MINERS ETF BREAKS SUPPORT -- STEEL ETF COMPLETES THREE-POINT REVERSAL -- US STEEL AND NUCOR FORGE LOWER HIGHS

by John Murphy,

Chief Technical Analyst, StockCharts.com

SHANGHAI COMPOSITE FORMS YET ANOTHER LOWER HIGH... Link for today's video. It is tempting to suggest that the Shanghai Composite ($SSEC) is testing a major support zone, but the trend is clearly down and support levels are not expected to hold in downtrends. Chart 1 shows the index...   READ MORE 

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COPPER FOLLOWS THE DOLLAR LOWER -- SLOW AND STEADY WINS THE RACE FOR STOCKS -- 10-YR TREASURY YIELD BREAKS FEBRUARY HIGH -- IEF FORGES OUTSIDE REVERSAL WEEK -- KEY BREADTH INDICATORS CONFIRM STOCK MARKET STRENGTH

by John Murphy,

Chief Technical Analyst, StockCharts.com

COPPER FOLLOWS THE DOLLAR LOWER... Link for today's video. Stocks extended their winning days as most of the major stock indices hit new highs again this week. A new high in the Finance SPDR (XLF) and renewed relative strength in the finance sector is perhaps the most significant...   READ MORE 

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$RUT UP 12% IN ONE MONTH, UP 254% IN 5 YEARS -- CAT, JOY, DE HAVE STRONG DAY -- FINANCIALS HAVE ANOTHER BIG DAY -- SOME LARGE MARKET ANNIVERSARIES -- A LOOK AT AN INTERESTING CYCLE

by John Murphy,

Chief Technical Analyst, StockCharts.com

$RUT UP 12% IN ONE MONTH, 254 % IN 5 YEARS... The $SPX has obviously been on a serious run since the 3 digit lows of 2009. The rise since those lows has been staggering. From February 2014 lows: $SPX 8 % $COMPQ 10 % $RUT 12 % From March 2009 lows: $SPX 182...   READ MORE 

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AUTOS, BANKS, AND RAILS HAVE A STRONG DAY -- LEADERS INCLUDE BAC, GM, AND CSX -- AUTO STRENGTH MAY BE BOOSTING PALLADIUM AND PLATINUM ISHARES -- MOVING AVERAGE TRENDS SHOW IMPROVEMENT

by John Murphy,

Chief Technical Analyst, StockCharts.com

MORE STOCKS ARE TRADING ABOVE MOVING AVERAGE LINES... One of my recent concerns about the stock market rally was the fact that a smaller percentage of stocks were trading above moving average lines. That situation, however, has shown noticeable improvement. The blue line in Chart 1 plots the NYSE Percent...   READ MORE 

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SMALL-CAPS LEAD MARKET HIGHER WITH BIG MOVES -- AN OVERBOUGHT STUDY FOR IWM -- EQUAL-WEIGHT FINANCE ETF HITS NEW HIGH -- GOLDMAN AND MORGAN BREAK FEBRUARY HIGHS AS JPM PULLS A REVERSAL -- MONSANTO LEADS MATERIALS SPDR TO NEW HIGH

by John Murphy,

Chief Technical Analyst, StockCharts.com

SMALL-CAPS LEAD MARKET HIGHER WITH BIG MOVES... Link for today's video. Turnaround Tuesday lived up to its reputation as stocks surged with a broad-based rally. The Russell 2000 ETF (IWM) and S&P SmallCap iShares (IJR) led the major index ETFs with sharp gains. Chart 1 shows...   READ MORE 

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SPY FOLLOWS SPINNING TOP WITH GAP DOWN -- THREE SUPPORTS FOR THREE KEY SECTORS -- INTC WEIGHS ON SEMICONDUCTOR ETF -- GOLD SURGES TO NEW HIGH FOR 2014 -- GERMAN DAX FAILS TO CONFIRM OTHER EU INDICES

by John Murphy,

Chief Technical Analyst, StockCharts.com

SPY FOLLOWS SPINNING TOP WITH GAP DOWN... Link for today's video. Last week I wrote about Monday's shooting star pattern in the S&P 500 SPDR (SPY). This bearish candlestick pattern was never confirmed because the ETF closed above the shooting star high on Friday...   READ MORE 

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APRIL CRUDE OIL IS TESTING AUGUST HIGHS -- THAT'S GIVING A BOOST TO ENERGY ETFS -- MARKET VECTORS OIL SERVICE ETF IS BIGGEST PERCENTAGE GAINER -- HALLIBURTON AND SCHLUMBERGER ARE OIL SERVICE LEADERS

by John Murphy,

Chief Technical Analyst, StockCharts.com

APRIL CRUDE OIL IS TESTING AUGUST HIGH ... My last two messages dealt with the recent upturn in commodity markets. During February, the CRB Index reached the highest level in a year. Most of those gains came in natural gas and agricultural markets owing mainly to weather concerns. This week saw...   READ MORE 

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ANOTHER WEEK AND ANOTHER SET OF NEW HIGHS -- DEFINING OVERBOUGHT FOR THE S&P 500 SPDR -- TREASURIES RALLY ALONG WITH STOCKS -- PIMCO BOND ETF HITS NEW HIGH -- AD LINE AND AD VOLUME LINE GET EXTENDED -- NEW HOME SALES COULD HAVE FURTHER ROOM TO RUN

by John Murphy,

Chief Technical Analyst, StockCharts.com

ANOTHER WEEK AND ANOTHER SET OF NEW HIGHS... Link for today's video. Even though stocks are getting overbought again, the bulk of the evidence remains bullish for the stock market. In fact, I should refer to the "bearish" indications as mere "concerns" because they...   READ MORE 

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BONDS ARE TESTING HEAD/SHOULDERS NECKLINE ON YIELDS -- SPX CONTINUES TO TEST WITHIN THE 1830/1860 RANGE -- XLY,XLK,XLI,XLB,XLV ALL HAVE SCTR'S HIGHER THAN 70 -- XLP,XLF,XLE ALL HAVE SCTR'S BELOW 50 -- XLU,XLP, XLV, XLY ARE TRENDING UP THIS MONTH

by John Murphy,

Chief Technical Analyst, StockCharts.com

BONDS ARE TESTING HEAD/SHOULDERS NECKLINE ON YIELDS... The $TNX represents the 10 year bond yield as shown in Chart 1. This chart portrays a potential head/shoulders top. As yields go lower, bond prices go higher. This chart needs to be followed as it disagrees with the price action...   READ MORE 

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BIG JUMP IN NEW HOME SALES SENDS HOMEBUILDERS SHARPY HIGHER -- LENNAR AND TOLL BROTHERS LEAD RALLY WHILE SEVERAL OTHERS ARE AT HIGHEST LEVELS SINCE MIDYEAR -- LOWES LEADS SHARP RALLY IN HOME IMPROVEMENT RETAILERS

by John Murphy,

Chief Technical Analyst, StockCharts.com

DJ HOME CONSTRUCTION ISHARES HIT MULTI-YEAR HIGH ... A report that new home sales climbed to the highest level in more than five years has given a big boost to homebuilders and other stocks tied to housing. Chart 1 shows the Dow Jones U.S Home Construction iShares (ITB) surging more...   READ MORE 

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APPLYING THE CONFIRMATION PRINCIPLE TO $SPX AND OTHER INDICES -- DOW TRANSPORTS AND INDUSTRIALS LAG -- GOLDMAN, 3M, FEDEX AND UPS WEIGH -- SHOOTING STARS TAKE SHAPE IN SPY AND MDY -- XLY, XLI AND XLF PLAY CATCH UP TO CONFIRM

by John Murphy,

Chief Technical Analyst, StockCharts.com

APPLYING THE CONFIRMATION PRINCIPLE TO $SPX AND OTHER INDICES ... Link for today's video. The long-term trends are clearly up for the major stock indices, but some non-confirmations could be taking shape because not all indices hit new highs. The term "non-confirmation" comes from Dow Theory. Charles...   READ MORE 

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FINANCE SECTOR CATCHES A BID -- THREE KEY BANKING STOCKS BOUNCE OFF SUPPORT -- AIRLINE INDUSTRY GROUP LEADS AGAIN IN 2014 -- AIRLINES, RAILS AND TRANSPORTS LEAD INDUSTRIALS SECTOR -- MARINE TRANSPORT STOCKS OUTPERFORM -- AIRLINE INDEX NEARS 52-WEEK HIGH

by John Murphy,

Chief Technical Analyst, StockCharts.com

FINANCE SECTOR CATCHES A BID ... Link for today's video. That did not take long. I wrote about relative weakness in the Finance SPDR (XLF) and the Regional Bank SPDR (KRE) on Friday. Even though their price relatives have yet to breakout and signal a return to relative strength,...   READ MORE 

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COMMODITY PRICES ARE RISING FOR FIRST TIME IN TWO YEARS -- THAT'S GOOD FOR COUNTRIES LIKE CANADA THAT PRODUCE COMMODITIES -- BUT POTENTIALLY BAD FOR BONDS -- WHILE WEATHER IS BOOSTING SOME COMMODITIES, COPPER IS LAGGING BEHIND

by John Murphy,

Chief Technical Analyst, StockCharts.com

COMMODITY INDEX IS TURNING UP ... With the stock market running into a little resistance around its old high, and bond yields stuck in the middle of a trading range, the biggest intermarket story this past week was the 2014 climb in commodity prices. I wrote about this on Wednesday, but...   READ MORE 

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NEW HIGHS ABOUND AND AFFIRM BULL MARKET -- SPY CHALLENGES HIGH AS QQQ RECORDS NEW HIGH -- EQUAL-WEIGHT S&P 500 OUTPERFORMS, BUT RUSSELL 2000 LAGS -- REGIONAL BANKS WEIGH ON FINANCE SECTOR -- RETAIL REMAINS A DRAG ON THE CONSUMER DISCRETIONARY SECTOR

by John Murphy,

Chief Technical Analyst, StockCharts.com

NEW HIGHS ABOUND AND AFFIRM BULL MARKET... Link for today's video. Despite relative weakness in a few key groups, the bulk of the evidence remains bullish for the stock market. Several key ETFs and indicators recorded 52-week highs this week. Except for retail, the bearish points are mostly...   READ MORE 

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THE INDEXES HAVE A WEAK DAY WHILE TESTING NEW HIGHS -- CHECKING FOR A SHORT TERM TOP ON THE INDEXES -- $SPXA50R COULD BE POINTING TO A SHORT TERM TOP -- $SPXA200R POINTS TO A MORE SIGNIFICANT CORRECTION -- XLF WORKING TO STAY ABOVE THE 50 DMA

by John Murphy,

Chief Technical Analyst, StockCharts.com

THE INDEXES HAVE A WEAK DAY WHILE TESTING NEW HIGHS - ... Chart 1 shows a tight 4 day view of the indexes in a 30 minute time frame. The $SPX tried to take out the yearend high close of 1848.38 on Wednesday. It could not quite make it back...   READ MORE 

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WEAKER DOLLAR AND WEATHER GIVE COMMODITIES A BOOST -- NATURAL GAS AND COFFEE ARE BIGGEST GAINERS -- BUT UPTURNS ALSO SEEN IN ECONOMICALLY-SENSITIVE COPPER, OIL, AND SILVER -- BASIC MATERIAL AND ENERGY STOCKS ARE ALSO STRONG

by John Murphy,

Chief Technical Analyst, StockCharts.com

COMMODITIES TRACKING FUND CLEARS 200-DAY AVERAGE... After lying dormant for the last year, commodity prices are finally showing some life. Chart 1 shows the DB Commodities Tracking Fund (DBC) surging to the highest level in four months and clearing its 200-day moving average. [The DBC includes 14 actively traded commodities]...   READ MORE 

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HEALTHCARE PROVIDERS INDEX SPRINGS INTO ACTION -- AETNA, HUMANA AND UNITEDHEALTH LEAD HMO REBOUND -- ITB SHOWS UPSIDE LEADERSHIP AHEAD OF KEY DATA -- SILVER GETS A BREAKOUT AND RESISTANCE TARGET -- BASE METALS FAIL TO FOLLOW PRECIOUS METALS

by John Murphy,

Chief Technical Analyst, StockCharts.com

HEALTHCARE PROVIDERS INDEX SPRINGS INTO ACTION... Link for today's video. The HealthCare SPDR is the strongest of the nine sectors in the stock market right now. Despite being in the strongest sector, healthcare providers lagged the market and underperformed this year. This may be changing as the DJ...   READ MORE 

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TECH LEADERSHIP IS BULLISH OVERALL -- SPY APPROACHES NEW HIGH AS QQQ HITS NEW HIGH -- TWO STOCKS MAKING MOVES WITH BIG VOLUME -- AD AND AD VOLUME LINES NEAR NEW HIGHS -- NET NEW HIGHS SURGE ABOVE +2% -- RETAIL SPDR LAGS LIKE IT'S 2007

by John Murphy,

Chief Technical Analyst, StockCharts.com

TECH LEADERSHIP IS BULLISH OVERALL... Link for today's video. After a strong finish to 2013, stocks started the year flat and then fell sharply in the second half of January. Selling pressure continued on the first day of February, but stocks soon firmed and mounted a pretty strong...   READ MORE 

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THE BOND AND EQUITY MARKETS HIT KEY FIB LEVELS -- THE NASDAQ COMPOSITE MAINTAINS ITS CHANNEL -- THE MARKET SECTOR LEADERSHIP IS CHANGING -- THE SCTR RANKINGS SHOW MARKET LEADERSHIP CHANGES AS WELL MFL -- CHW RNP NKX JPI PUSH TO BECOME TOP QUARTILE

by John Murphy,

Chief Technical Analyst, StockCharts.com

THE BOND AND EQUITY MARKETS HIT KEY FIB LEVELS... After the market has worked to get back above most of our common retracement levels, it hovers in one crucial spot today. I have opened the chart John posted yesterday and added Fibonacci retracements. In Chart 1 the bonds have retraced...   READ MORE 

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BOUNCE IN BOND YIELD SUPPORTS STOCK REBOUND -- BOLLINGER BANDS TURN POSITIVE AND S&P 500 CLEARS 50-DAY LINE -- BUT DECLINING VOLUME HASN'T CONFIRMED PRICE RISE -- WEEKLY MACD LINES REMAIN NEGATIVE

by John Murphy,

Chief Technical Analyst, StockCharts.com

RISING BOND YIELDS SUPPORT STOCK REBOUND... Last Wednesday's message showed how action in the bond market offered clues to stock market direction. It showed the 10-Year Treasury Note Yield ($TNX) bouncing off its 200-day average (and staying above chart support at its October low). The message suggested that...   READ MORE 

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NASDAQ 100 EQUAL-WEIGHT ETF HITS NEW HIGH -- FOUR STOCKS SHOWING RELATIVE STRENGTH IN THE ENERGY SECTOR -- BIG DATA STOCKS MAKING BIG MOVES -- SEAGATE HITS KEY LEVEL AS WESTERN DIGITAL PULLS BACK

by John Murphy,

Chief Technical Analyst, StockCharts.com

NASDAQ 100 EQUAL-WEIGHT ETF HITS NEW HIGH... Link for today's video. Technology remains one of the strongest groups in the stock market. We can see this because the Nasdaq 100 Equal-Weight ETF (QQEW) is already above its January high. Not many index or group ETFs are trading at...   READ MORE 

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HEALTHCARE SPDR BOUNCES OFF TREND LINE ZONE -- PFIZER, GILEAD AND ABBVIE LOOK TO EXTEND UPTRENDS -- SHANGHAI COMPOSITE BOUNCES OFF LONG-TERM SUPPORT -- GOLD SPDR CHALLENGES UPPER BOLLINGER BAND -- SILVER CONSOLIDATES WITHIN DOWNTREND

by John Murphy,

Chief Technical Analyst, StockCharts.com

HEALTHCARE SPDR BOUNCES OFF TREND LINE ZONE... Link for today's video. The HealthCare SPDR (XLV) has been one of the strongest sectors in the stock market this year, and shows no signs of letting up. Chart 1 shows the XLV hitting a new high in mid January, pulling...   READ MORE 

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MARKET BOUNCES OFF 200-DAY AVERAGE, BUT ON LOWER VOLUME -- INDEXES WILL NOW HAVE TO CLEAR 50-DAY LINES TO SIGNAL END OF CORRECTION -- EAFE ISHARES ALSO BOUNCES OFF 200-DAY AVERAGE WHILE EMERGING MARKETS REBOUND FROM IMPORTANT SUPPORT LEVELS

by John Murphy,

Chief Technical Analyst, StockCharts.com

200-DAY AVERAGES HOLD... Despite a weak jobs report on Friday, stocks had an impressive price rebound on Thursday and Friday. That was partially due to a short-term oversold condition. Chart 1 shows the 14-day RSI line for the Dow Industrials bouncing from oversold territory near 30 (although its daily MACD...   READ MORE 

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SPY GETS OVERSOLD BOUNCE -- SMALL-CAPS LAG ON OVERSOLD BOUNCE -- BREADTH SHOWS MATERIAL SELLING PRESSURE -- NET NEW HIGHS DO THE DOUBLE DIP -- ECONOMIC INDICATORS TURN MIXED -- MANUFACTURING WEAKENS, BUT SERVICES REMAIN STRONG -- AUTO SALES STALL

by John Murphy,

Chief Technical Analyst, StockCharts.com

SPY GETS OVERSOLD BOUNCE... Link for today's video. Stocks started the week under selling pressure as the S&P 500 SPDR (SPY) plunged below 175 on Monday to create a short-term oversold condition. Chart 1 shows the ETF with a support zone marked by the November low,...   READ MORE 

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EURO STROKES A REVERSAL CANDLE BOND YIELDS MOVE HIGHER $WTIC TESTS THE 200 DMA UNG BREAKS THE UP TREND -- CAT RISES WHILE THE MARKET FALLS -- THE SCTR ON CAT HITS A SWEET SPOT A QUICK VIEW OF MAJOR MINING COMPANIES

by John Murphy,

Chief Technical Analyst, StockCharts.com

EURO STROKES A REVERSAL CANDLE ... The Euro has a slow negative slope to it as shown in Chart 1. We can also see the recent trend line break has been cancelled by the move today. The Euro now resides above the trend line, but below the down sloping 50 DMA....   READ MORE 

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WATCHING BOND YIELD AND PRICE FOR CLUES TO STOCK MARKET DIRECTION -- APPLYING BOLLINGER BANDS TO THE S&P 500 -- EMERGING MARKET CURRENCIES AND STOCKS ARE TESTING CRITICAL CHART SUPPORTS -- VIX INDEX IS TESTING RESISTANCE ALONG 2013 HIGHS

by John Murphy,

Chief Technical Analyst, StockCharts.com

BOND YIELD TEST NEARS CHART SUPPORT ... The downturn on bond yields at the start of the year forewarned of a pullback in stocks. Both have fallen together as some money left stocks for the relative safety of Treasury bonds. Chart 1, however, shows the 10-Year Treasury Note Yield ($TNX) very...   READ MORE 

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DOWN TURN IN YIELD CURVE WEIGHS ON BANKS -- REGIONAL BANK SPDR BREAKS LONG-TERM TREND LINE -- NATURAL GAS STOCKS SHOW RELATIVE STRENGTH -- SECTOR PERFCHARTS REVEAL A POTENTIAL 2014 LEADER -- TECHNOLOGY SPDR HITS FIRST SUPPORT ZONE

by John Murphy,

Chief Technical Analyst, StockCharts.com

DOWN TURN IN YIELD CURVE WEIGHS BANKS... Link for today's video. Regional banks got hit hard over the last few weeks as the yield curve turned down this year. The yield curve affects banking profits because banks make money by borrowing short, lending long and capturing the spread....   READ MORE 

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SPY BREAKS KEY SUPPORT LEVEL -- MDY AND XLF TRIGGER CONTINUATION SIGNALS -- XLY EXTENDS DECLINE AND RELATIVE WEAKNESS -- AUTOS AND RETAILERS WEIGH -- NIKKEI 225 CORRECTS TO FIRST SUPPORT ZONE -- EURO BREAKS KEY LEVEL AS MOMENTUM REMAINS BEARISH

by John Murphy,

Chief Technical Analyst, StockCharts.com

SPY BREAKS KEY SUPPORT LEVEL ... Link for today's video. After a big decline in mid January, stocks consolidated last week with flags and pennants forming in several ETFs. Flags and pennants are short-term continuation patterns that form after a sharp move. Chart 1 shows the S&P...   READ MORE 

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VOLUME PATTERN SUGGESTS DEEPER CORRECTION FOR STOCKS -- JANUARY BAROMETER IS A NEGATIVE SIGN FOR STOCKS DURING 2014 -- SO IS THE FACT THAT THIS IS A MIDTERM ELECTION YEAR -- UTILITIES, REITS AND HOMEBUILDERS FOLLOW BOND PRICES HIGHER

by John Murphy,

Chief Technical Analyst, StockCharts.com

HEAVY DOWNSIDE VOLUME ISN'T A GOOD SIGN... The stock market ended the week as it began -- on the downside. Two low-volume bounces on Tuesday and Thursday were followed by higher volume declines on Wednesday and Friday. Charts 1 and 2 show the Dow Industrials and S&...   READ MORE 

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BLAME XLY AND TLT BEFORE EEM -- FEBRUARY PATTERNS SHIFT FOR THE S&P 500 -- ADDING A TIME DIMENSION TO THE CORRECTION TARGETS -- BREADTH INDICATORS PULLBACK WITHIN BIGGER UPTREND -- NET NEW HIGHS DIP TO PRIOR REVERSAL ZONES

by John Murphy,

Chief Technical Analyst, StockCharts.com

BLAME XLY AND TLT BEFORE EEM... Link for today's video. There is certainly a lot of blame to go around for the recent weakness in the stock market. First, the employment report missed expectations at the beginning of January and this kept a bid in the bond market....   READ MORE 

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$SPX FED DATES CREATE SUPPORT AT 1775 -- NUMBER OF STOCKS ABOVE THE 50 DMA IS AT A RALLY LEVEL -- $SPXA200R IS WEAKENING - NEXT RALLY MAY DEFINE MAJOR TOP -- $NATGAS BECOMES A LAUNCH FUEL -- GLD MOVES BACK BELOW THE 20 DMA -- FACEBOOK TAKES FLIGHT

by John Murphy,

Chief Technical Analyst, StockCharts.com

$SPX FED DATES CREATE SUPPORT AT 1775... The stock market has returned back to the level that was first touched on the Oct 30th Fed meeting at 1775 as shown in Chart 1. After running back below 1750 in November, the reversal came in right after the large black engulfing...   READ MORE 

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FED CONTINUES TAPERING PROGRAM -- NO RELIEF FROM EMERGING MARKET SELLOFF -- US STOCK INDEXES TEST INITIAL SUPPORT -- WEEKLY BOLLINGER BANDS HELP FIND POTENTIAL DOWNSIDE TARGETS -- PREVIOUS PULLBACKS TO LOWER BAND HAVE PROVIDED SUPPORT

by John Murphy,

Chief Technical Analyst, StockCharts.com

FED REDUCES MONTHLY BOND PURCHASES BY ANOTHER $10 BILLION ... The Fed announced this afternoon that it will continue bond tapering program by reducing its February bond purchases from $75 billion to $65 billion. Some observers thought that Fed might back off on its tapering after the recent plunge in emerging...   READ MORE 

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FINANCE SPDR BECOMES MOST OVERSOLD SINCE 2011 -- JP MORGAN, MORGAN STANLEY AND WELLS HOLD SUPPORT -- HOME CONSTRUCTION ISHARES BOUNCES OFF BREAKOUT ZONE -- LENNAR, PULTE AND RYLAND FORM BULL FLAGS -- THE DOLLAR IS ACTUALLY A PRETTY STRONG CURRENCY

by John Murphy,

Chief Technical Analyst, StockCharts.com

FINANCE SPDR BECOMES MOST OVERSOLD SINCE 2011... Link for today's video. The Finance SPDR (XLF) is getting an oversold bounce after a very sharp decline. XLF led the market lower over the prior three days with a plunge from 22 to 21. Even though this is just one...   READ MORE