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MARKING FUTURE SUPPORT FOR THE XLY, XLK, XLI AND XLF -- SEMICONDUCTOR SPDR CONFIRMS CONTINUATION PATTERN -- FOUR SEMICONDUCTOR STOCKS GOING FOR BREAKOUTS -- THE INTERNET OF EVERYTHING ETF FORMS BULLISH PENNANT -- EBAY HITS AN INTERESTING JUNCTURE

by John Murphy,

Chief Technical Analyst, StockCharts.com

MARKING FUTURE SUPPORT FOR THE XLY, XLK, XLI AND XLF... Link for today's video. There is no doubt that the four offensive sector SPDRs are in up trends. First, all four are trading within a few percent of their 52-week highs. Second, current prices are near the upper...   READ MORE 

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USING SEASONALITY TO GET THE EDGE IN RETAIL STOCKS -- COMPARING ABSOLUTE VERSUS RELATIVE SEASONALITY -- SCTR HITS 12-MONTH MILESTONE FOR RETAIL SPDR -- GAP AND KOHLS ARE IN SHORT-TERM UPTRENDS, BUT UNDERPERFORMING

by John Murphy,

Chief Technical Analyst, StockCharts.com

USING SEASONALITY TO GET THE EDGE IN RETAIL STOCKS... Link for today's video. It is a big week for the Retail SPDR (XRT) because the Commerce Department will report December retail sales on Tuesday before the open. The consensus estimate is for a .4% gain in month-to-month retail...   READ MORE 

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WEAK DECEMBER JOBS REPORT PUSHES BOND YIELDS SHARPLY LOWER AND BOND PRICES HIGHER -- THAT ALSO BOOSTS DIVIDEND PAYERS LIKE REITS AND UTILITIES WHICH OFFER BETTER RETURNS THAN BONDS

by John Murphy,

Chief Technical Analyst, StockCharts.com

BOND YIELD PLUNGES ON WEAK JOBS REPORT... Friday's news that American employers added only 74,000 jobs in December didn't have much of an effect on the broader stock market, but did shock bond investors. Chart 1 shows the 10-Year Treasury Note Yield ($TNX) suffering the...   READ MORE 

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S&P 500 SPDR STALLS AFTER MINI BREAKOUT -- RUSSELL 2000 ETF HITS SHORT-TERM TREND LINE -- 20+ YR T-BOND ETF CONVERTS THE SQUEEZE PLAY -- NON-FARM PAYROLLS: A BLIP OR A NEW REALITY? -- ISM INDICES EXTEND WINNING STREAK

by John Murphy,

Chief Technical Analyst, StockCharts.com

S&P 500 SPDR STALLS AFTER MINI BREAKOUT... Link for today's video. The major index ETFs remain in long-term uptrends, but moved into corrective mode after big surges in the second half of December. While I am not looking for a major trend reversal in the stock...   READ MORE 

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$SPX MOVES HORIZONTAL FOR TWO WEEKS -- THE AIRLINES AND RAILS ENJOY LOWER FUEL COSTS -- THE ENERGY SECTOR IS THINNING IN BREADTH -- NATURAL GAS AND COAL ALSO PLUMMET -- $COPPER IS AT A PIVOT POINT

by John Murphy,

Chief Technical Analyst, StockCharts.com

$SPX MOVES HORIZONTAL FOR TWO WEEKS ... Looking at the intraday on Chart 1 of the $SPX with 1 hour candles, the market has been unable to make any real process since the surge after the Fed meeting. The $INDU Chart looks a little weaker as we are trying to find...   READ MORE 

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RISING BOND YIELDS ARE HELPING BANKS, BUT HURTING DIVIDEND PAYING SHARES -- RISING YIELDS ARE ALSO CONTRIBUTING TO WEAKER EMERGING MARKETS -- GOLD IS HURT BY RISING BOND YIELDS AND A NEW SECULAR BULL MARKET IN STOCKS

by John Murphy,

Chief Technical Analyst, StockCharts.com

HIGHER BOND YIELDS ARE HELPING BANKS ... Banks stocks have been market leaders during the first week of the new year. Chart 1 shows the KBW Bank SPDR (KBE) recently hitting a new high. Its relative strength ratio (gray area) has also been rising. Part of that is due to expectations...   READ MORE 

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MIRROR MIRROR ON THE WALL, WHO'S THE STRONGEST SECTOR OF ALL? -- SETTING A BULLISH-BEARISH THRESHOLD FOR HIGH-LOW PERCENT -- RANKING SECTORS AND ANALYZING ROTATION USING THE BPI -- INDUSTRIALS, MATERIALS AND FINANCE LEAD BPI TABLE

by John Murphy,

Chief Technical Analyst, StockCharts.com

MIRROR MIRROR ON THE WALL, WHO'S THE STRONGEST SECTOR OF ALL... Link for today's video. Today's commentary will show chartists two unique ways to measure relative performance for the nine sector SPDRs. Note that today's video provides step-by-step instructions for creating these...   READ MORE 

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USING RSI(5) TO PLAY THE PULLBACKS -- QQQ HITS FIRST SUPPORT ZONE -- TRADING THE THROWBACK AFTER THE BREAK OUT IN ITB -- A CLASSIC CORRECTIVE PATTERN FOR THE EURO -- THE DOLLAR COULD BE SETTING UP FOR A BIG MOVE

by John Murphy,

Chief Technical Analyst, StockCharts.com

USING RSI(5) TO PLAY THE PULLBACKS... Link for today's video. It looks like stocks are having a New Year's Eve hangover with weakness over the last three days. I would not consider this an omen for the rest of the year just yet though. A...   READ MORE 

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CHANNEL SURFING WITH THE S&P 500 -- USING CCI TO TRADE THE TREND -- MARKET INTERNALS CONFIRM UNDERLYING STRENGTH -- HIGH-LOW LINE CAPTURES SMOOTH UPTREND -- XLY AND XLI SUPPORT A STRONG STOCK MARKET -- FINANCE AND TECHNOLOGY SPDRS START OUTPERFORMING

by John Murphy,

Chief Technical Analyst, StockCharts.com

CHANNEL SURFING WITH THE S&P 500... Link for today's video. The S&P 500 remains in a strong uptrend and is now nearing the upper trend line of a twenty-six month channel. First and foremost, there is no sign of a major top on this...   READ MORE 

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2009-2014 $SPX ON SAME SLOPE AS 1995-2000 -- 2003 -2007 $SPX SLOPE HAS BEEN SEEN BEFORE -- THE $SPX IS ON ONE OF THE LONGEST STREAKS SINCE 1984 -- MID DECADE RALLIES HAVE BEEN A THEME -- $WTIC GIVES UP 3 WEEKS OF GAINS

by John Murphy,

Chief Technical Analyst, StockCharts.com

2009-2014 $SPX ON SAME SLOPE AS 1995-2000 ... Year-end is always a good place to review the big picture. The current slope of the $SPX advance is the same as in the 5 year run from 1995-2000. As long as we stay above the multi year trend line in Chart 1,...   READ MORE 

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METAL AND MINING STOCKS SHOW NEW STRENGTH -- STEEL LEADERS ARE AKSTEEL, NUCOR, AND STEEL DYNAMICS -- ALCOA AND FREEPORT MCMORAN COPPER & GOLD HAVE ALSO TURNED UP -- COPPER JUMPS TO EIGHT-MONTH HIGH -- RISING BALTIC SEA INDEX SUPPORTS HIGHER BOND YIELDS

by John Murphy,

Chief Technical Analyst, StockCharts.com

METALS & MINING ETF TURNS UP ... Another sign of growing economic strength is recent buying of metals and mining stocks. These stocks usually do better when demand for industrial metals increases which is tied to a stronger economy. The weekly bars in Chart 1 show the S&P Metals...   READ MORE 

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TICKER CLOUD HIGHLIGHTS RECENT IPO'S SHIPPING COMPANIES START TO MOVE -- A $2229 STOCK SELLING FOR $2 - JUST ABOUT FREE -- GLD BOUNCES OFF HORIZONTAL SUPPORT -- CRUDE TRYING TO SET RECORD HIGH YEARLY CLOSE

by John Murphy,

Chief Technical Analyst, StockCharts.com

TICKER CLOUD HIGHLIGHTS RECENT IPO'S ... The ticker cloud can offer some unique clues on a quiet day. Today GOGO, VJET and TWTR are all recent IPO's that are showing up in the ticker cloud.Chart 1 shows the ticker cloud earlier this morning, while Chart 2...   READ MORE 

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FIVE OF NINE SECTOR SPDRS HIT NEW HIGHS -- IWM BREAKS FLAG RESISTANCE, BUT STILL LAGS -- SPY SURGES TO NEW HIGH WITH MOMENTUM BREAKOUT -- BREADTH INDICATORS SURGE AND ESTABLISH KEY SUPPORT -- HIGH-LOW PERCENT SURGES BACK ABOVE 15%

by John Murphy,

Chief Technical Analyst, StockCharts.com

FIVE OF NINE SECTOR SPDRS HIT NEW HIGHS... Link for today's video. The bulk of the evidence remains bullish for stocks as we close one year and head into another. The long-term uptrends were affirmed with new highs in most of the major indices this month. The AD...   READ MORE 

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FED TAPER AND STRONGER ECONOMY SHOULD BOOST BOND YIELDS IN 2014 -- THAT WOULD BRING BOND YIELDS TO MORE NORMAL LEVELS AND ISN'T NECESSARILY BAD FOR STOCKS -- STOCK/BOND RATIO BREAKS 13-YEAR RESISTANCE LINE

by John Murphy,

Chief Technical Analyst, StockCharts.com

POSSIBLE UPSIDE TARGET FOR 10-YEAR BOND YIELD IS 3.75%... Wednesday's Fed announcement that it would finally begin a modest tapering of bond purchases in January gave a slight boost to bond yields during the second half of the week. The daily bars in Chart 1 show the...   READ MORE 

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HOUSING STARTS AND BUILDING PERMITS SURGE -- SCTR CLEARS KEY LEVEL FOR THE HOME CONSTRUCTION ISHARES -- LENNAR AND TOLL BROTHERS CHALLENGE SUMMER HIGHS -- USG FIRMS IN KEY RETRACEMENT ZONE -- TREASURIES GET A BAND SQUEEZE AS FED CHANGES DIRECTION

by John Murphy,

Chief Technical Analyst, StockCharts.com

HOUSING STARTS AND BUILDING PERMITS HIT MULTI-YEAR HIGHS... Link for today's video. Data from the St Louis Fed database (FRED) shows Housing Starts (HOUST) and Building Permits (PERMIT) surging in the fourth quarter and hitting multi-year highs. Chart 1 shows Housing Starts moving to its highest level since...   READ MORE 

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FED DAY SHOWS OUT OF CHARACTER HIGH VOLUMES -- DECLINING NUMBER OF NET NEW HIGHS IS PROBLEMATIC -- THE XLF, $XBD AND KRE ARE MAKING NEW HIGHS -- THE INSURANCE GROUP IS LAGGING -- BONDS CONTINUE TO UNDERPERFORM STOCKS -- THE $USD LOOKS TO BE TURNING UP

by John Murphy,

Chief Technical Analyst, StockCharts.com

THE FED DAY SHOWS OUT OF CHARACTER HIGH VOLUMES.... The stock market roared to life on Wednesday with the Fed announcement of some tapering. Chart 1 shows the QQQ hitting the highest volume since January 2, 2013. While December 2012 average volumes were higher, this was a huge volume day...   READ MORE 

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FED ANNOUNCES MILD BOND TAPERING STARTING IN JANUARY -- BUT OFFERS ASSURANCE THAT SHORT-TERM RATES WILL STAY DOWN -- STOCKS RALLY SHAPLY ON THE NEWS -- LENNAR LEADS HOMEBUILDERS HIGHER -- VIX TUMBLES AS STOCKS SURGE

by John Murphy,

Chief Technical Analyst, StockCharts.com

FED REDUCES BOND PURCHASES BY 10 BILLION IN JANUARY... Well, it finally happened. The Fed today announced that it would start reducing its monthly bond purchases from $85 to $75 billion starting in January. It also reassured investors, however, that short-term rates would still stay near current levels for the...   READ MORE 

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SEMICONDUCTOR SPDR CHALLENGES OCTOBER HIGH -- NETWORKING ISHARES SETS A BEAR TRAP -- ARRIS AND PALO ALTO NETWORKS LEAD NETWORKERS -- BALTIC DRY INDEX HITS THREE-YEAR HIGH -- SHIPPING ETF CONSOLIDATES WITHIN UPTREND

by John Murphy,

Chief Technical Analyst, StockCharts.com

SEMICONDUCTOR SPDR CHALLENGES OCTOBER HIGH... Link for today's video. The broad market was weak in early trading on Tuesday, but there were pockets of strength in the tech sector. In particular, the Semiconductor SPDR (XSD) was up around 1% and trading near its October high. Chart 1 shows...   READ MORE 

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TELECOM ISHARES CORRECTS WITH FALLING CHANNEL -- AT&T AND VERIZON BOUNCE OFF FIBONACCI LEVELS -- HONDA AND TOYOTA WEIGH ON GLOBAL AUTO ETF -- FORD TESTS SUPPORT AS UPSIDE VOLUME INCREASES -- SCTR SURGES FOR MARKETVECTORS RUSSIA ETF

by John Murphy,

Chief Technical Analyst, StockCharts.com

TELECOM ETF CORRECTS WITH FALLING CHANNEL... Link for today's video. The Telecom iShares (IYZ) has underperformed the broader market over the last five weeks, but the ETF hit a support zone and firmed the last few days. Chart 1 shows IYZ in a long-term uptrend as the ETF...   READ MORE 

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THE FOUR-YEAR PRESIDENTIAL CYCLE SUGGESTS THAT 2014 COULD SUFFER A MAJOR DOWNSIDE CORRECTION -- THE GOOD NEWS IS THAT A MAJOR BUYING OPPORTUNITY IS LIKELY LATER IN THE YEAR -- THE STRONGEST THREE MONTH PERIOD ENDS IN JANUARY

by John Murphy,

Chief Technical Analyst, StockCharts.com

SECOND YEAR OF PRESIDENTIAL TERM IS USUALLY THE WORST ... Those of you who have read my messages over the last year know that I am bullish on the long-term direction of the stock market. I believe that the "secular" bear market that started in 2000 ended this year...   READ MORE 

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SPY APPROACHES SUPPORT ZONE AND BECOMES OVERSOLD -- RUSSELL 2000 IS UP 85% OF THE TIME IN DECEMBER -- DIA AND IWM CORRECT WITH BULL FLAGS -- HIGH-LOW INDICATOR HITS MAKE-OF-BREAK LEVEL -- SMALL DIVERGENCES FORM IN AD LINE AND AD VOLUME LINE

by John Murphy,

Chief Technical Analyst, StockCharts.com

SPY APPROACHES SUPPORT ZONE AND BECOMES OVERSOLD... Link for today's video. After a big October and big November, trading in the S&P 500 ETF (SPY) and stock market turned choppy in December. The trading range is relatively small and not enough to affect the overall uptrend....   READ MORE 

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GLOBAL MARKETS ARE MOSTLY LOWER IN DECEMBER -- PERCENTAGE OF STOCKS ABOVE THE 50 DMA CONTINUE TO DETERIORATE -- $COMPQ IS STILL OUTPERFORMING -- UTILITIES AND ENERGY SECTORS UNDERPERFORM -- $USD APPEARS CORRECTIVE

by John Murphy,

Chief Technical Analyst, StockCharts.com

** GLOBAL MARKETS ARE MOSTLY LOWER IN DECEMBER **... Chart 1 shows the price moves of the major global markets since the close of November. The $BSE ( Bombay, India) has moved higher. The $FTSE (London) and $CAC (France) markets are continuing to go lower. Germany is still strong as it is up...   READ MORE 

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BROADCOM LEADS SEMICONDUCTOR SPDR HIGHER -- RETAIL SPDR WEAKENS AHEAD OF RETAIL SALES -- HOME CONSTRUCTION SPDR CHALLENGES RANGE RESISTANCE -- TOLL BROTHERS CHALLENGES RESISTANCE - PLUS DHI AND PHM -- FACEBOOK AND LINKEDIN GET SOME MOJO BACK

by John Murphy,

Chief Technical Analyst, StockCharts.com

BROADCOM LEADS SEMICONDUCTOR SPDR HIGHER... Link for today's video. Programming note: Yesterday's video was truncated at the 15 minute mark and did not include the last section, which was a demo on using the SCTR tables. This video has since been fixed to include the last...   READ MORE 

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SHANGHAI COMPOSITE BREAKS A MAJOR TREND LINE -- COPPER BOUNCES WITHIN FALLING CHANNEL -- OIL BOUNCES OFF THE MIDDLE OF LONG-TERM RANGE -- OIL-RELATED ETFS UNDERPERFORMED DESPITE SURGE IN OIL -- RANKING SECTORS USING THE STOCKCHARTS TECHNICAL RANK (SCTR)

by John Murphy,

Chief Technical Analyst, StockCharts.com

SHANGHAI COMPOSITE BREAKS A MAJOR TREND LINE... Link for today's video. The Shanghai Composite ($SSEC) is making a breakout bid with a move above the 2011 trend line and a break above flag resistance. Chart 1 shows the index hitting a new low with a move below 1900...   READ MORE 

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STRONG JOBS REPORT GIVES STOCKS A BIG LIFT -- GENERAL MOTORS LEADS AUTOS HIGHER AS TESLA JUMPS -- RAILS TOP INDUSTRIAL SECTOR AS NORFOLK SOUTHERN, CSX, AND UNION PACIFIC HIT NEW RECORDS

by John Murphy,

Chief Technical Analyst, StockCharts.com

STOCKS BOUNCE OFF CHART SUPPORT... Friday's announcement that U.S. payrolls rose by 203,000 during November with the unemployment rate falling to 7% (the lowest level in five years) topped a week of encouraging economic news. Stocks rose strongly on that report, which suggests that good news...   READ MORE 

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FINANCE SPDR BOUNCES OFF BROKEN RESISTANCE -- REGIONAL BANKS OUTPERFORM BIG BANKS -- EEM BOUNCES WITHIN BULL FLAG -- SOLAR ETF STARTS TO LAG -- FIRST SOLAR FORMS BEAR FLAG, PLUS SCTY AND SPWR -- MANUFACTURING AND SERVICES REMAIN STRONG

by John Murphy,

Chief Technical Analyst, StockCharts.com

FINANCE SPDR BOUNCES OFF BROKEN RESISTANCE... Link for today's video. The Finance SPDR (XLF) led the market lower over the last four days, but the ETF found support near broken resistance and surged around 1% in early trading on Friday. Chart 1 shows XLF in a long-term uptrend...   READ MORE 

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COMMODITIES GET A BOUNCE -- $WTIC TESTS THE 200 DMA FROM THE BOTTOM -- $GOLD FINALLY HAS A SHORT COVERING RALLY -- COPPER RALLIES WITHOUT DIVERGENCE -- $USD SPENDS NOVEMBER TRAPPED BETWEEN THE DMA'S

by John Murphy,

Chief Technical Analyst, StockCharts.com

$WTIC TESTS THE 200 DMA FROM THE BOTTOM ... Oil, Gold and Copper made big short covering rallies yesterday. More importantly, the $WTIC 200 DMA is tilted down now and the 50 DMA has crossed below. This is a price zone of significant resistance. We can see from the chart that...   READ MORE 

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OVERBOUGHT MARKET STARTS TO LOSE UPSIDE MOMENTUM -- THE DOW MAY RETEST SUMMER HIGHS -- THE VIX IS BOUNCING OFF CHART SUPPORT WHICH IS ANOTHER SHORT-TERM CONCERN -- MONEY MANAGERS MAY BE TAKING PROFITS A LITTLE EARLY THIS YEAR

by John Murphy,

Chief Technical Analyst, StockCharts.com

OVERBOUGHT DOW MAY BE STARTING SHORT-TERM CORRECTION ... Given the extent of the market rally since October, it's no surprise that it has reached an overbought condition. Chart 1, for example, plots the Dow Industrials. The 14-day RSI line (top of chart) is backing off from the 70 level...   READ MORE 

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STEEL ETF STARTS UNDERPERFORMING AS WEDGE TAKES SHAPE -- RSI HITS MAKE-OR-BREAK LEVEL FOR METALS & MINING SPDR -- SEMICONDUCTOR SPDR PERKS UP WITH WEDGE BREAKOUT -- NETWORKING ISHARES BOUNCES WITHIN LARGER DOWNTREND

by John Murphy,

Chief Technical Analyst, StockCharts.com

STEEL ETF STARTS UNDERPERFORMING... Even though the stock market is strong overall, there are pockets of weakness in various industry groups over the last one to three months. Today's commentary will look at some of the underperforming industry group ETFs and show what it would take to reverse...   READ MORE 

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STOCKS ARE STILL THE BEST GAME IN TOWN -- SMALL-CAPS AND MICRO-CAPS START TO OUTPERFORM -- THE JANUARY EFFECT GETS EARLIER AND EARLIER -- LIVE DEMO OF SEASONALITY TOOL -- OFFENSIVE SECTOR PERFORMANCE SUPPORTS THE BULLISH CASE

by John Murphy,

Chief Technical Analyst, StockCharts.com

STOCKS ARE STILL THE BEST GAME IN TOWN... Link for today's video. Stocks may seem overbought and ripe for a corrective period, but the uptrends look solid and the seasonal patterns are bullish for December. Today's commentary will look at the "participation factor" and...   READ MORE 

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STOCKCHART SCTRS SHOW HOMEBUILDERS TO BE DAY'S STRONGEST GROUP -- DOW JONES HOME CONSTRUCTION ISHARES HAS BIGGEST SCTR JUMP TODAY -- INDIVIDUAL HOMEBUILDERS WITH HIGHEST SCTR RANKINGS (AND STRONGEST CHART PATTERNS) ARE NVR, TOLL BROTHERS, AND PULTEGROUP

by John Murphy,

Chief Technical Analyst, StockCharts.com

APPLYING SCTR LINE TO HOME CONTRUCTION ISHARES ... SCTRs are one of the most helpful ways to find new leaders in the stock market. SCTRs stand for StockCharts Technical Rank which is a number between 0 and 100 that determines a market's relative strength. The numbers are derived from...   READ MORE 

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DEFINING THE CHANNELS FOR IWM AND QQQ -- NATGAS HOLDS BREAKOUT AND SURGES TO RESISTANCE -- NATURAL GAS INDEX ETF BREAKS FLAG RESISTANCE -- CATERPILLAR AND DEERE SURGE TO RESISTANCE -- COAL ETF AND METALS-MINING SPDR TESTS SUPPORT

by John Murphy,

Chief Technical Analyst, StockCharts.com

DEFINING THE CHANNELS FOR IWM AND QQQ... Link for today's video. Chartists can define a trend using channel trend lines and the Raff Regression Channel. I typically use channel trend lines when the peaks and troughs align to form parallel lines. Sometimes the peaks and troughs do not...   READ MORE 

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YIELD CURVE PLOTS THE DIFFERENCE BETWEEN LONG AND SHORT TERM RATES -- THE YIELD CURVE SUGGESTS AN UPPER LIMIT OF 3.75% FOR 10-YEAR YIELD -- THE GREAT ROTATION FROM BONDS TO STOCKS IS WELL UNDERWAY

by John Murphy,

Chief Technical Analyst, StockCharts.com

COMPARISON OF LONG AND SHORT TERM RATES... I'm going to devote this message to an explanation of the "yield curve" -- what it is and how you can use it to determine the direction of bond yields and the stock market. During the financial crisis of...   READ MORE 

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HISTORY SUGGESTS THIS IS NOT ANOTHER TECHNOLOGY BUBBLE -- COMPARISON TO 2000 SHOWS WHAT A TECH BUBBLE LOOKED LIKE -- SECTORS IN A BUBBLE ARE USUALLY MARKET LEADERS -- TECHS ARE MARKET LAGGARDS

by John Murphy,

Chief Technical Analyst, StockCharts.com

NASDAQ MAY BE OVERBOUGHT, BUT NOT IN A BUBBLE... There's been a lot of media talk recently about another "technology bubble". While the group may be over-extended (more on that shortly), talk of a bubble seems misguided. Here's the thing about bubbles. While we...   READ MORE 

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INTEREST RATE SENSITIVE ETFS LEAD MARKET LOWER -- TLT HOLDS BREAK AND CONTINUES LOWER -- INTEREST RATES COULD SIMPLY RETURN TO NORMAL -- DOLLAR BREAKS FLAG RESISTANCE AS EURO PLUNGES -- GOLD AND SILVER TANK ON TAPER THOUGHTS

by John Murphy,

Chief Technical Analyst, StockCharts.com

INTEREST RATE SENSITIVE ETFS LEAD MARKET LOWER... Link for today's video. Stocks extended their correction as the S&P 500 ETF (SPY) closed lower for the third day running. Even though the ETF declined three days in a row, selling pressure has been relatively light because SPY...   READ MORE 

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ENERGY SPDR GETS COLD FEET WITH BEARISH ENGULFING -- THE NOOSE TIGHTENS FOR TWO SEMICONDUCTOR ETFS -- PCP AND TSO SCORE BIG ON SCTR TABLE -- ROCKWELL COLLINS AND GOLDMAN SACHS BREAK RESISTANCE -- SHANGHAI COMPOSITE CHALLENGES FLAG RESISTANCE

by John Murphy,

Chief Technical Analyst, StockCharts.com

ENERGY SPDR GETS COLD FEET WITH BEARISH ENGULFING... Link for today's video. I wrote about the Energy SPDR (XLE) breaking flag resistance with a surge on Friday and this breakout is already getting cold feet as the ETF forms a bearish engulfing pattern. Despite this bearish reversal pattern,...   READ MORE 

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EIGHT OF THE NINE SECTOR SPDRS HIT NEW HIGHS -- RETAIL AND REGIONAL BANKS OUTWEIGH SEMIS AND NETWORKING -- S&P EQUAL WEIGHT ETF AND S&P MIDCAP SPDR RECORD NEW HIGH -- BREADTH INDICATORS CONFIRM WITH NEW HIGHS

by John Murphy,

Chief Technical Analyst, StockCharts.com

EIGHT OF THE NINE SECTOR SPDRS HIT NEW HIGHS... Link for today's video. Even though there are some pockets of weakness in the stock market, one cannot help but be impressed with new highs from several key ETFs. First, note that eight of the nine sector SPDRs recorded...   READ MORE 

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FALLING YEN CONTRIBUTES TO UPSIDE BREAKOUT IN JAPANESE STOCKS -- DOW INDUSTRIALS HIT NEW RECORD HIGH -- UTILITIES AND HOMEBUILDERS HAVE STRONG DAY AND MAY BE BOTTOMING -- THAT WOULD TAKE WEIGHT OFF THE REST OF THE MARKET

by John Murphy,

Chief Technical Analyst, StockCharts.com

FALLING YEN BOOSTS JAPANESE STOCKS... Chart 1 shows the clear inverse relationship that has existed between Japanese stocks and the yen since mid-2012. The falling green line is the yen, while the rising orange line is the WisdomTree Japan Hedged Equity ETF (DXJ). [The DXJ is the best way to...   READ MORE 

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RUSSELL 2000 ETF CHALLENGES FLAG RESISTANCE -- HOME CONSTRUCTION ISHARES FILLS THE GAP AS TOL BOUNCES -- HOME DEPOT LIFTS XHB OFF KEY RETRACEMENT -- TRIANGLE TAKES SHAPE FOR DJ AUTO INDEX -- GM LEADS AUTO INDEX WITH NEW HIGH

by John Murphy,

Chief Technical Analyst, StockCharts.com

RUSSELL 2000 ETF CHALLENGES FLAG RESISTANCE... Link for today's video. Last week the Finance SPDR surged and broke flag resistance. Today the Russell 2000 ETF (IWM) is joining the fray with a break above flag resistance. First and foremost, chart 1 shows an overall uptrend because prices are...   READ MORE 

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BOND PRICES SELL OFF AS YIELDS RISE -- HIGH YIELD BOND ETF BACKS OFF FROM CHART RESISTANCE WHICH MAY CAUSE SOME SHORT-TERM STOCK SELLING -- RISING YIELD ALSO THREATENS EMERGING MARKETS

by John Murphy,

Chief Technical Analyst, StockCharts.com

BOND PRICES SELL OFF FROM CHART RESISTANCE ... My market message from October 31 showed bond ETFs starting to back off from overhead resistance barriers while in an overbought condition. Those ETFs have fallen since then as bond yields have risen. Chart 1 shows the Barclays 7-10 Year Treasury Bond iShares...   READ MORE