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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 

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RELATIVE PERFORMANCE FLATTENS FOR XLY -- RETAIL SPDR SURGES TO HOLD BREAKOUT ZONE -- SEMICONDUCTOR SPDR CONSOLIDATES AFTER GAP -- ISM DUO STILL FAVORS ECONOMIC EXPANSION -- NON-FARM PAYROLLS CONTINUE MODEST EXPANSION

by John Murphy,

Chief Technical Analyst, StockCharts.com

RELATIVE PERFORMANCE FLATTENS FOR XLY... Link for today's video. The stock market surged on Friday, but there were some noticeable pockets of "less strength". The finance sector and banking group led the market and closed up for the week, but the Consumer Discretionary SPDR (XLY) lagged...   READ MORE 

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RISING BOND YIELD BOOSTS THE DOLLAR WHICH HURT COMMODITIES, ESPECIALLY GOLD -- RISING BOND YIELD HURTS DIVIDEND-PAYING STOCKS -- BUT HELPS ECONOMICALLY-SENSITIVE GROUPS -- STEEPENING YIELD CURVE GIVES LIFT TO BANK STOCKS

by John Murphy,

Chief Technical Analyst, StockCharts.com

BIG JUMP IN BOND YIELD STRENGTHENS THE DOLLAR ... An unusually strong employment report on Friday, following an uptick in GDP growth on Thursday, helped push bond yields sharply higher this week. Chart 1 shows the 10-Year Treasury Note Yield (TNX) climbing to the highest level since September (2.75%) and...   READ MORE 

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XLF CHALLENGES FLAG RESISTANCE -- REGIONAL BANK SPDR SURGES TO NEW HIGH -- BANK OF AMERICA, CITIGROUP AND JP MORGAN LEAD XLF -- SOCIAL MEDIA ETF HITS SUPPORT ZONE -- LINKEDIN FORMS ABC CORRECTION -- FACEBOOK FIRMS ABOVE SUPPORT

by John Murphy,

Chief Technical Analyst, StockCharts.com

XLF CHALLENGES FLAG RESISTANCE ... Link for today's video. The Finance SPDR (XLF) remains on my radar because this key sector has been underperforming the broader market. That may be changing. Just to review, chart 1 shows the ETF surging above resistance in mid October, but failing to hold...   READ MORE 

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DOW INDUSTRIALS REMAINS A SWINGERS PARADISE -- SMALL-CAPS AND FINANCIALS CONTINUE TO UNDERPERFORM -- TECHS AND STAPLES LEAD MIXED MARKET -- BASE METALS FUND BREAKS DOWN -- COPPER ETN TESTS KEY SUPPORT ZONE -- METALS NOT GETTING ANY HELP FROM CHINA

by John Murphy,

Chief Technical Analyst, StockCharts.com

DOW INDUSTRIALS REMAINS A SWINGERS PARADISE... Link for today's video. There is no shortage of big moves in the Dow Industrials over the last several months. Chart 1 shows the Dow with five swings of at least 800 points since June (three up and two down). It is...   READ MORE 

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BOND PRICES CONTINUE TO BACK OFF FROM OVERHEAD RESISTANCE -- THAT'S EXERTING DOWNSIDE PRESSURE ON HOMEBUILDERS AND REITS -- UTILITIES ARE TESTING SUMMER HIGHS -- FALLING CRUDE OIL HAS GIVEN BIG LIFT TO AIRLINES

by John Murphy,

Chief Technical Analyst, StockCharts.com

BOND FUND TURNS DOWN AT RESISTANCE ... My last message showed various overbought bond ETFs starting to weaken from overhead resistance. Since then, bond ETFs have fallen even further. Chart 1 shows the Barclays Aggregate Bond iShares (AGG) falling back below its 200-day moving average after failing a test of an...   READ MORE 

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MDY AND QQQ EXTEND CONSOLIDATIONS -- INDUSTRIALS AND CONSUMER DISCRETIONARY SECTORS LEAD -- EXPECTATIONS SHIFT AS DOLLAR SURGES AND EURO PLUNGES -- BRENT CRUDE AND NATURAL GAS BREAK DOWN -- PALLADIUM CONSOLIDATES WITH BULLISH PATTERN

by John Murphy,

Chief Technical Analyst, StockCharts.com

MDY AND QQQ EXTEND CONSOLIDATIONS... Link for today's video. The S&P Midcap SPDR (MDY) and the Nasdaq 100 ETF (QQQ) hit new 52-week highs in late October and then moved into tight consolidations the last seven to ten trading days. The new highs affirm the overall...   READ MORE 

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RUSSELL 2000 ETF PLUNGES TO FIRST SUPPORT -- FINANCE SPDR FAILS TO HOLD BREAKOUT -- BANK OF AMERICA, CITIGROUP AND GOLDMAN WEIGH ON XLF -- RETAIL SPDR CONSOLIDATES ABOVE BREAKOUT -- RISING RATES WEIGH ON HOME CONSTRUCTION ISHARES

by John Murphy,

Chief Technical Analyst, StockCharts.com

RUSSELL 2000 ETF PLUNGES TO FIRST SUPPORT... Link for today's video. The stock market rally took a breather this week as the S&P 500 ETF traded flat the last five days and the Russell 2000 ETF (IWM) fell rather sharply. In afternoon trading on Friday, SPY...   READ MORE 

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BOND BOUNCE IS UP AGAINST CHART RESISTANCE AND LOOKS OVERBOUGHT -- HIGH YIELD BOND ETF IS TESTING ITS SPRING HIGH -- THAT'S AN IMPORTANT TEST BECAUSE HIGH YIELD BONDS ARE CLOSELY CORRELATED TO THE DIRECTION OF THE S&P 500

by John Murphy,

Chief Technical Analyst, StockCharts.com

BOND RALLY IS NOW OVERBOUGHT ... After selling off sharply between May and September, bond prices have been bouncing for the last two months. The bounce, however, has reached technical levels that may cap the rally. Chart 1 shows the 7-10 Year T Bond iShares (IEF) having retraced 50% of its...   READ MORE 

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SMALL-CAPS START TO UNDERPERFORM -- BIOTECH ETFS LEAD MARKET DECLINE AND SHOW RELATIVE WEAKNESS -- $WTI/$BRENT SPREAD WIDENS TO SPRING LEVELS -- TESORO, VALERO, PHILLIPS AND WESTERN REFINING LEAD REFINERS HIGHER

by John Murphy,

Chief Technical Analyst, StockCharts.com

SMALL-CAPS START TO UNDERPERFORM... Link for today's video. Small-caps are starting to underperform and show relative weakness. Chartists should keep an eye on this because prior break downs in the $OEX:$RUT ratio foreshadowed periods of weakness in the broader stock market. Small-caps are considered the canaries in...   READ MORE 

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DOW INDUSTRIALS NEAR RECORD HIGH -- AT&T LEADS DOW HIGHER, WHILE PFIZER AND PROCTER & GAMBLE HIT NEW HIGHS -- CONSUMER STAPLE SPDR IS WEEK'S STRONGEST GROUP AFTER LAST WEEK'S BULLISH BREAKOUT

by John Murphy,

Chief Technical Analyst, StockCharts.com

DOW NEARS RECORD HIGH ... The Dow Jones Industrial Average is the only major U.S. stock index that hasn't hit a new record. But that may be about to change. Chart 1 shows the Dow trading within 40 points of its September high. A close above that level...   READ MORE 

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NETWORKING ISHARES TESTS IMPORTANT SUPPORT ZONE -- QUALCOMM CONSOLIDATES ABOVE BREAKOUT ZONE -- F5 NETWORKS TESTS SUPPORT AS CISCO HITS KEY RETRACEMENT -- DRILLING DOWN WITH THE SECTOR SUMMARY -- ASSET MANAGERS INDEX CONFIRMS BULLISH PATTERN

by John Murphy,

Chief Technical Analyst, StockCharts.com

NETWORKING ISHARES TESTS IMPORTANT SUPPORT ZONE... Link for today's video. The technical outlook for IGN is deteriorating and this could have ramifications for the technology sector and Nasdaq. With a sharp decline the last five days, the Networking iShares (IGN) is testing an important trend line and support...   READ MORE 

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QQQ SURGES TO YET ANOTHER NEW HIGH -- AMAZON AND MICROSOFT GET ON THE SAME PAGE -- CONSUMER DISCRETIONARY AND RETAIL SPDRS SCORE NEW HIGHS -- FINANCE SPDR STALLS NEAR RESISTANCE -- CHINA AND JAPAN SHOW RELATIVE AND ABSOLUTE WEAKNESS

by John Murphy,

Chief Technical Analyst, StockCharts.com

QQQ SURGES TO YET ANOTHER NEW HIGH... Link for today's video. The Nasdaq 100 ETF (QQQ) stuttered with a dip on Wednesday, but got its mojo back on Thursday and Friday with a move to new highs. Weakness in semiconductor and networking stocks weighed on tech stocks the...   READ MORE 

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DOW TRANSPORTS HIT RECORD HIGH -- DOW THEORY UPTREND REMAINS INTACT, BUT NEEDS A NEW INDUSTRIAL HIGH TO CONFIRM TRANSPORTATION BREAKOUT -- FALLING BOND YIELD GIVES BOOST TO UTILITY STOCKS WHICH HAVE BECOME MARKET LAGGARDS

by John Murphy,

Chief Technical Analyst, StockCharts.com

TRANSPORTS HIT RECORD HIGHS AS INDUSTRIALS LAG... During the summer, we wrote about bullish signals given by the Dow Theory. That theory holds that a major uptrend is intact when the Dow Industrials and Transports are hitting new highs together. That positive event took place during August and September (see...   READ MORE 

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TECH STOCKS WEIGH ON STOCK MARKET -- SEMICONDUCTOR SPDR FORGES A BREAKAWAY GAP -- CREE, ALTERA AND ARM HOLDINGS LEAD SEMIS LOWER -- LOW HITS NEW HIGH AS HOMEBUILDERS BOUNCE -- OIL PLUNGES TO POTENTIAL SUPPORT ZONE

by John Murphy,

Chief Technical Analyst, StockCharts.com

TECH STOCKS WEIGH ON STOCK MARKET... Link for today's video. Weakness in the technology sector weighed on the stock market Wednesday. Chart 1 shows the Equal-weight Technology ETF (RYT) falling over 1% with a long black candlestick. I am using this equal-weight ETF to capture performance for the...   READ MORE 

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TLT BREAKS OUT AS RATES FALL -- BASE METALS ETF IS STILL LAGGING -- BOLLINGER BANDS CONTRACT FOR COPPER -- COPPER MINERS ETF TURNS UP WITHIN UPTREND -- GOLD AND SILVER ETFS CHALLENGE HEIKIN-ASHI RESISTANCE -- GOLD MINERS ETF BOUNCES OFF SUMMER LOWS

by John Murphy,

Chief Technical Analyst, StockCharts.com

TLT BREAKS OUT AS RATES FALL... Link for today's video. It is going to be a big week for Treasuries. First, the employment report is scheduled for Tuesday morning before the open. Even though quantitative easing seems a lock for the next three to six months, a strong...   READ MORE 

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GOOGLE AND PRICELINE JOIN THE FOUR-FIGURE CLUB -- GOOGLE POWERS QQQ, XLK AND FDN TO NEW HIGHS -- HOUSING STOCKS LEAD RATE SENSITIVE ETFS HIGHER -- ITB HOLDS WEDGE BREAKOUT ON WEEKLY CHART -- PERFCHART RANKS TOP TEN ITB HOLDINGS

by John Murphy,

Chief Technical Analyst, StockCharts.com

GOOGLE AND PRICELINE JOIN THE FOUR-FIGURE CLUB... Link for today's video. With a positive earnings report stoking the bulls, Google surged over 10% and joined the thousand Dollar stock club on Friday. Actually, the club is pretty small with only Google (GOOG) and priceline.com hitting the $1000...   READ MORE 

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FALLING DOLLAR BOOSTS GOLD AND MATERIAL STOCKS -- STEEL CONTINUES TO LEAD -- LEADERS INCLUDE NUCOR AND STEEL DYNAMICS -- TELECOM ISHARES HIT NEW HIGH LED BY VERIZON, CROWN CASTLE, AND SBA COMMUNICATIONS -- DIVIDEND ISHARES ALSO HIT RECORD HIGH

by John Murphy,

Chief Technical Analyst, StockCharts.com

U.S. DOLLAR INDEX FALLS TO TWO-YEAR LOW... The U.S. dollar continues to weaken. Chart 1 shows the PowerShares US Dollar Bullish Fund (UUP) falling to the lowest level since the third quarter of 2011. One of the side-effects of a falling dollar is that it gives a boost...   READ MORE