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CHEMICAL STOCKS LEAD MATERIALS SECTOR -- EXXONMOBIL AND HALLIBURTON WEIGH ON THE ENERGY SPDR -- XOM BREAKS TREND LINE AS RSI TURNS DOWN -- MARKET CARPET HIGHLIGHTS RECENT UTILITY LEADERS -- UTILITIES SPDR HOLDS SHORT-TERM BREAKOUT

by John Murphy,

Chief Technical Analyst, StockCharts.com

CHEMICAL STOCKS DRIVE THE MATERIALS SECTOR... Link for today's video. Know thy sector SPDR. When trading or investing in the nine sector SPDRs, it is important to know the top components because the top ten stocks in each sector account for over 40% of the sector's...   READ MORE 

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ALTHOUGH FALLING DOLLAR IS GOOD FOR GOLD, GOLD NEEDS TO RISE AGAINST ALL CURRENCIES TO RESUME ITS BULL TREND -- DOW/GOLD RATIO NOW FAVORS STOCKS FOR FIRST TIME IN A DECADE -- FALLING GOLD/COPPER RATIO IMPLIES ECONOMIC OPTIMISM

by John Murphy,

Chief Technical Analyst, StockCharts.com

FALLING DOLLAR IS GOOD FOR GOLD... During the Stockcharts' New York seminar over the weekend, we got into a discussion of gold. One of the attendees asked why I remained negative on gold's long term trend in the face of a declining dollar. I responded that there...   READ MORE 

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FINANCE SECTOR AND REGIONAL BANKS WEIGH ON MARKET -- JP MORGAN AND BANK OF AMERICA BREAK SHORT-TERM SUPPORT -- GOLD AND GOLD MINERS FALL BACK AFTER FED SURGE -- INTERNET AND NETWORKING STOCKS WEIGH ON TECH SECTOR -- COPPER HOLDS BREAKOUT

by John Murphy,

Chief Technical Analyst, StockCharts.com

FINANCE SECTOR AND REGIONAL BANKS WEIGH ON MARKET... Link for today's video. I wrote about relative weakness in the Finance SPDR (XLF) last week and this key sector is weighing on the market today. Banks could be under pressure because of a high level of uncertainty at the...   READ MORE 

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CONSUMER DISCRETIONARY, INDUSTRIALS AND TECHNOLOGY SPDRS HIT NEW HIGHS -- FINANCE AND REGIONAL BANKS STILL LAGGING -- RETAIL SPDR LAGS, BUT REMAINS IN UPTREND OVERALL -- INTERNET, NETWORKING AND SEMICONDUCTOR ETFS BREAK TO NEW HIGHS

by John Murphy,

Chief Technical Analyst, StockCharts.com

CONSUMER DISCRETIONARY, INDUSTRIALS AND TECHNOLOGY SPDRS HIT NEW HIGHS... Link for today's video. Even though the finance sector is lagging the market this month, the other three offensive sectors are picking up the slack and showing relative strength. There are different ways to measure relative performance and find...   READ MORE 

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FED SURPRISE HAS PREDICTABLE INTERMARKET RESULT -- STOCKS RISE AS BOND YIELDS TUMBLE -- RATE-SENSITIVE STOCKS SURGE -- PLUNGING DOLLAR BOOSTS GOLD AND OTHER COMMODITIES -- FALLING DOLLAR ALSO GIVES BIG BOOST TO FOREIGN MARKETS

by John Murphy,

Chief Technical Analyst, StockCharts.com

RATE SENSITIVE STOCKS SURGE ON BOND RALLY... The Fed surprised everyone yesterday by deciding not to start its widely anticipated tapering of bond purchases. Although that decision was a surprise, market reactions weren't. In fact, each market did pretty much was one would expect. Bond yields tumbled and...   READ MORE 

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STOCKS EXTEND UPTRENDS AFTER THE SEPTEMBER SURPRISE -- HOME CONSTRUCTION ISHARES LEADS MARKET AS RATES FALL -- UTILITIES AND REITS SCORE BIG GAINS -- DOLLAR BREAKS MAJOR SUPPORT AND GOLD SURGES

by John Murphy,

Chief Technical Analyst, StockCharts.com

STOCKS EXTEND UPTRENDS AFTER THE SEPTEMBER SURPRISE ... Link for today's video. The September Fed meeting has come and gone, and nothing changed, which was a surprise to most pundits. In its policy statement, the Fed decided not to taper its bond-buying program because the FOMC wants to wait...   READ MORE 

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FINANCIALS AND INDUSTRIALS LEAD MARKET HIGHER -- REGIONAL BANK SPDR REMAINS BELOW SUPPORT BREAK -- COPPER ETF FAILS TO PARTAKE IN SEPTEMBER SURGE -- YIELD CURVE CONTINUES TO STEEPEN -- RSI FOR TLT TRACES OUT BULLISH FAILURE SWING

by John Murphy,

Chief Technical Analyst, StockCharts.com

FINANCIALS AND INDUSTRIALS LEAD MARKET HIGHER... Link for today's video. The Finance SPDR (XLF), the Industrials SPDR (XLI) and the Basic Materials SPDR (XLB) are leading the stock market sectors with the biggest gains on Monday. Also note that XLI, XLB, the Consumer Discretionary SPDR (XLY), the Technology...   READ MORE 

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SMALL-CAPS CONTINUE TO OUTPERFORM LARGE-CAPS -- SETTING CHANNEL TARGETS FOR IWM AND SPY -- KEY BREADTH INDICATORS TURN BACK UP -- S&P 1500 HIGH-LOW LINE HITS A NEW HIGH -- GOLD BREAKDOWN SIGNALS A CONTINUATION OF LONG-TERM DOWNTREND

by John Murphy,

Chief Technical Analyst, StockCharts.com

SMALL-CAPS CONTINUE TO OUTPERFORM LARGE-CAPS... Link for today's video. September has been a good month for stocks with the Russell 2000, Nasdaq and S&P 500 advancing over 3% month-to-date (nine trading days). The Russell 2000 is the leader of the pack as small-caps continue to show...   READ MORE 

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RISING BALTIC DRY INDEX REFLECTS INCREASE IN CHINESE DEMAND FOR NATURAL RESOURCES -- STEEL LEADERS INCLUDE AKSTEEL, NUCOR AND STEEL DYMANICS -- FREEPORT MCMORAN COPPER & GOLD JUMPS ON HOPES FOR MORE COPPER DEMAND

by John Murphy,

Chief Technical Analyst, StockCharts.com

SHIPPING RATES SOAR AS CHINA BUYS MORE ORE... This headline is from today's Wall Street Journal (by Costas Paris and Francesa Freeman, p.C1). I'm writing about it today because it fits into comments made in my last market message about how a rising Chinese stock...   READ MORE 

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SPY EXTENDS BREAKOUT WITH A GAP -- HOME CONSTRUCTION ISHARES CHALLENGES WEDGE TREND LINE -- RETAIL SPDR RETAKES SUPPORT BREAK -- APPLE FALLS TO FIRST POTENTIAL SUPPORT ZONE -- FRENCH AND GERMAN INDICES CHALLENGE AUGUST HIGHS

by John Murphy,

Chief Technical Analyst, StockCharts.com

SPY EXTENDS BREAKOUT WITH A GAP... Link for today's video. The S&P 500 ETF (SPY) ended its correction with a breakout last week and surge above 168 this week. First, I think we can all agree at the long-term trend for SPY (aka The Stock Market)...   READ MORE 

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FOREIGN STOCKS LEAD U.S. MARKET HIGHER -- EMERGING MARKET ISHARES REACH THREE-MONTH HIGH -- STRONG UPTURN IN CHINESE STOCKS GIVES BOOST TO MATERIALS -- INDEX OF CYLICAL STOCKS HITS NEW RECORD -- END OF STOCK CORRECTION SIGNALLED BY 13-YEAR HIGH IN NASDAQ

by John Murphy,

Chief Technical Analyst, StockCharts.com

FOREIGN STOCKS LEAD US HIGHER -- EEM BREAKOUT... In a role reversal from the first half of the year, foreign stocks are leading U.S. stocks higher. Chart 1 shows EAFE iShares (EFA) gapping to a new three-month high today and on the verge of the highest close in five...   READ MORE 

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XLB SHOWS LEADERSHIP WITH FLAG BREAKOUT -- METALS AND COPPER MINING ETFS PACE GAINS -- XLE CHALLENGES HIGHS WITH BULLISH CONTINUATION PATTERN -- SHANGHAI COMPOSITE EXTENDS UPSWING WITH BIG SURGE -- NIKKEI CHALLENGES TRIANGLE TREND LINE

by John Murphy,

Chief Technical Analyst, StockCharts.com

XLB SHOWS LEADERSHIP WITH FLAG BREAKOUT... Link for today's video. Strength in Asia markets, which are covered below, is providing a lift to the materials sector and related industry groups. Chart 1 shows the Basic Materials SPDR (XLB) breaking above flag resistance with a surge the last six...   READ MORE 

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HOMEBUILDER ETF BOUNCES, BUT REMAINS SHORT OF BREAKOUT -- FINANCE AND CONSUMER DISCRETIONARY SPDRS CHALLENGE THE GAPS -- NASDAQ 100 AD VOLUME LINE HITS NEW HIGH -- ISM NEW ORDERS INDICES POINT TO STRONG ECONOMY

by John Murphy,

Chief Technical Analyst, StockCharts.com

HOMEBUILDER ETF BOUNCES, BUT REMAINS SHORT OF BREAKOUT - USG GAPS UP... Link for today's video. Treasury yields fell after Friday's jobs report and interest rate sensitive stocks got a bounce as utilities, REITs and homebuilders moved higher. In particular, I would like to focus on...   READ MORE 

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BOND YIELDS REACHING NEW RECOVERY HIGH IS A SIGN OF ECONOMIC OPTIMISM -- THAT'S WHY ECONOMICALLY-SENSITIVE CYCLICAL STOCKS ARE OUTPERFORMING CONSUMER STOCKS -- AUTOS CONTINUE TO SHOW MARKET LEADERSHIP AS FORD NEARS MAJOR BULLISH BREAKOUT

by John Murphy,

Chief Technical Analyst, StockCharts.com

BOND YIELD REACHES NEW TWO-YEAR HIGH... The weekly bars in Chart 1 show the 10-Year Treasury Note Yield ($TNX) reaching a new two-year high today and very close to breaching the psychologally important 3% barrier for the first time since early 2011. The TNX has also cleared a five-year resistance...   READ MORE 

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SPY CHALLENGES GAP ZONE AND FIRST RESISTANCE -- INTERNET ETF AND SOLAR ETF SHOW RELATIVE STRENGTH -- SEMICONDUCTOR SPDR CHALLENGES WEDGE RESISTANCE -- INTEL LEADS MARKET VECTORS SEMICONDUCTOR ETF -- THREE SECTOR AD LINES SHOW RELATIVE STRENGTH

by John Murphy,

Chief Technical Analyst, StockCharts.com

SPY CHALLENGES GAP ZONE AND FIRST RESISTANCE... Link for today's video. The major index ETFs remain in short-term downtrends since early August and long-term uptrends since mid November. This short-term downtrend is a correction that is entering its fifth week and marks the third correction of the year....   READ MORE 

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FOREIGN STOCK ETFS CATCH UP TO MONDAY'S GAINS -- CHINA AND JAPAN ARE BIGGEST FOREIGN GAINERS -- U.S. STOCKS START WEEK ON AN UPNOTE -- BOND YIELDS CONTINUE TO GAIN AS BOND PRICES DROP

by John Murphy,

Chief Technical Analyst, StockCharts.com

EAFE ISHARES GAP HIGHER... The rest of the world rallied on Monday while the U.S. was closed for Labor Day. Foreign stock ETFs (which were also closed on Monday) are playing catch-up today to yesterday's gains. Chart 1 shows EAFE iShares (EFA) gapping more than 2% higher...   READ MORE 

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DOLLAR BOUNCE CAUSES PROFIT-TAKING IN OVERBOUGHT COMMODITIES -- US STOCKS REMAIN IN DOWNSIDE CORRECTION -- FOREIGN STOCKS ALSO WEAKEN -- CHINESE STOCKS SHOW RELATIVE STRENGTH -- BRAZIL STOCKS AND CURRENCY ARE TUMBLING TOGETHER

by John Murphy,

Chief Technical Analyst, StockCharts.com

DOLLAR BOUNCES OFF CHART SUPPORT AS EURO WEAKENS... Last Saturday's message showed the U.S. Dollar Index (USD) testing important chart support at its June low. Chart 1 shows the USD rising to a three week high. That's not enough to signal a major upturn, but...   READ MORE 

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HOW MUCH CORRECTION CAN WE EXPECT FROM SPY AND IWM? -- GAPS REMAIN IN THE CONSUMER DISCRETIONARY SPDR -- WEAKNESS IN RETAIL AND HOUSING WEIGHS ON MARKET -- METALS & MINING SPDR HITS BIG RESISTANCE ZONE -- GOLD HITS FIBONACCI CLUSTER

by John Murphy,

Chief Technical Analyst, StockCharts.com

HOW MUCH CORRECTION CAN WE EXPECT FROM SPY AND IWM?... Link for today's video. The S&P 500 ETF (SPY) extended its correction with the third weekly decline in four weeks. Even though the bigger trend is still up, this correction could extend in both price and...   READ MORE 

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SEMICONDUCTOR SPDR BOUNCES WITHIN FALLING WEDGE -- KEY SECTORS REMAIN IN SHORT-TERM DOWNTRENDS -- TWO SHOOTING STARS AND TWO GAPS FOR XLB -- COPPER HITS RESISTANCE AS ISHARES BRIC ETF TURNS LOWER -- LUMBER PRICES FAIL AT RESISTANCE AND TURN DOWN

by John Murphy,

Chief Technical Analyst, StockCharts.com

SEMICONDUCTOR SPDR BOUNCES WITHIN FALLING WEDGE... Link for today's video. Stocks are rebounding today with the Semiconductor SPDR (XSD) leading the way. Chart 1 shows XSD finding support near broken resistance in the 54 area. Despite today's move, the ETF remains in a short-term downtrend that...   READ MORE 

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BROAD SELLING HITS STOCK MARKET -- FINANCIALS LEAD SECTORS LOWER -- WEAKNESS IN AIRLINES WEIGHS ON TRANSPORTS -- OIL SURGES ON MIDDLE EAST TENSIONS -- GOLD FOLLOWS OIL WITH CHALLENGE TO JUNE HIGHS

by John Murphy,

Chief Technical Analyst, StockCharts.com

BROAD SELLING HITS STOCK MARKET ... Stocks were hit with broad selling pressure on Tuesday as traders worried over possible US involvement in Syria. Combined with tensions in Egypt, turmoil in the Middle East is clearly unnerving the markets. Note that gold and oil are both up. I will have charts...   READ MORE 

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AMGEN LEADS BIOTECH SPDR HIGHER -- EXHAUSTION GAP AND BREAKAWAY GAP DEFINE CURRENT REVERSAL -- DOWNSIDE MOMENTUM INCREASES FOR THE S&P 500 ETF -- SHORT-TERM BREADTH INDICATORS TURN BEARISH -- CHARTING THE PLUNGE IN SINGLE FAMILY HOME SALES

by John Murphy,

Chief Technical Analyst, StockCharts.com

AMGEN LEADS BIOTECH SPDR HIGHER... Link for today's video. Biotechs continue to show relative strength as the Biotech SPDR (XBI) led the market on Monday. Chart 1 shows XBI bottoming in mid November and moving higher the last 10 months. The ETF surged to a new high in...   READ MORE 

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DOLLAR IS TESTING IMPORTANT SUPPORT LEVEL -- WHAT IT DOES FROM HERE WILL IMPACT THE DIRECTION OF COMMODITIES -- EMERGING MARKETS STOCKS AND CURRENCIES ARE TESTING SUPPORT LEVELS AS WELL-- YIELD CURVE SUGGESTS UPPER LIMITS FOR BOND YIELD

by John Murphy,

Chief Technical Analyst, StockCharts.com

U.S. DOLLAR IONDEX IS TESTING JUNE LOW... The U.S. dollar is in the process of testing a couple of important support lines. Chart 1 shows the U.S. Dollar Index (USD) testing a support line drawn under its June low. That's an important test, because a...   READ MORE 

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CONSUMER DISCRETIONARY SPDR CORRECTS WITH BIGGER UPTREND -- MARKING LONG-TERM SUPPORT FOR XLK, XLF AND XLI -- HOME CONSTRUCTION ISHARES HITS RESISTANCE AT NECKLINE BREAK -- A ROUGH MONTH FOR THREE KEY INDUSTRY GROUP ETFS

by John Murphy,

Chief Technical Analyst, StockCharts.com

CONSUMER DISCRETIONARY SPDR CORRECTS WITH BIGGER UPTREND... Link for today's video. The current uptrend in the stock market began in mid November. Since this low, the major index ETFs and most sector SPDRs have zigzagged higher with a series of rising peaks and rising troughs. With last week&...   READ MORE 

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QQQ FORMS SMALL FLAG AFTER GAP -- NASDAQ 100 AD LINE BREAKS SHORT-TERM SUPPORT -- APPLE, MICROSOFT AND GOOGLE TELL THE TALE FOR QQQ -- OIL BACKS OFF RESISTANCE AS STOCK PERFORMANCE WEIGHS -- TECHNICAL RANK DECLINES FOR XLE AND OIH

by John Murphy,

Chief Technical Analyst, StockCharts.com

QQQ FORMS SMALL FLAG AFTER GAP... Link for today's video. The Nasdaq 100 ETF (QQQ) remains in an uptrend overall, but the short-term trend is down as the gap holds for four days (today is the fifth). Chart 1 shows QQQ within an uptrend overall as prices advanced...   READ MORE 

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MIND THE GAP IN SPY -- SEMICONDUCTOR SPDR TESTS WEDGE BREAKOUT -- INTC HITS SUPPORT AS AMAT FIRMS WITH HIGH-WAVE CANDLESTICK -- GOLD BENEFITS FROM WEAKNESS IN BOTH STOCKS AND TREASURIES -- SENSEX TESTS SUPPORT AS BRIC ETF HITS RESISTANCE

by John Murphy,

Chief Technical Analyst, StockCharts.com

MIND THE GAP IN SPY... Link for today's video. In Friday's Market Message I showed some correction targets for the S&P 500 ETF (SPY) and Russell 2000 ETF (IWM) using weekly charts. Today I would like to get more granular by using daily charts...   READ MORE 

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SETTING CORRECTION TARGETS FOR IWM AND SPY -- NETWORKING ISHARES REVERSES AT RESISTANCE -- DB COMMODITIES TRADING FUND CHALLENGES RESISTANCE -- HINDENBURG OMEN TRIGGERS AS NEW LOWS EXPAND -- BPI DIVERGENCES TAKE SHAPE FOR THREE KEY SECTORS

by John Murphy,

Chief Technical Analyst, StockCharts.com

SETTING CORRECTION TARGETS FOR IWM AND SPY... Link for today's video. Based on this week's price action and short-term downtrends in a number of breadth indicators, the market appears to have entered into a corrective period. This is hardly surprising given the run up from mid...   READ MORE 

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STOCKS ENTER DOWNSIDE CORRECTION AS BOND YIELDS HIT TWO-YEAR HIGH -- S&P 500 TESTS 50-DAY AVERAGE -- WEEKLY INDICATORS SUGGEST POSSIBLE DROP TO JUNE LOW -- CISCO AND WALMART LEAD THE MARKET LOWER -- GOLD ASSETS CONTINUE TO GAIN GROUND

by John Murphy,

Chief Technical Analyst, StockCharts.com

BOND YIELD RESUMES UPTREND... The uptrend that started in bond yields during May is resuming. Chart 1 shows the 10-Year Treasury Note Yield ($TNX) hitting a new recovery high today. That resumes the uptrend in bond yields. The weekly bars in Chart 2 show that the TNX is now trading...   READ MORE 

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RETAIL SALES GROWTH SLOWS -- MACY'S PLUNGES TO SUPPORT ON BIG VOLUME -- RETAIL SPDR CONSOLIDATES ABOVE SUPPORT -- 20+ YEAR T-BOND ETF MOVES TO NEW LOW -- BOND PROXIES AND FINANCIALS UNDERPERFORM BROADER MARKET -- XLU FORGES LOWER HIGH AND BREAKS SUPPORT

by John Murphy,

Chief Technical Analyst, StockCharts.com

RETAIL SALES GROWTH SLOWS... Link for today's video. The Commerce Department reported a .2 percent rise in retail sales for July. Even though this gain was less than the June gain (.6 percent), it was still positive and still supports economic growth, albeit slow growth. To put this...   READ MORE 

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SPY AND IWM EXTEND CONSOLIDATIONS -- QQQ LEANS ON APPLE FOR RECENT GAINS -- APPLE HITS BIG RESISTANCE ZONE -- GOLD BREAKS RAFF REGRESSION CHANNEL -- SHANGHAI COMPOSITE SURGES ABOVE JULY HIGH - HANG SENG RETURNS TO BROKEN TREND LINE

by John Murphy,

Chief Technical Analyst, StockCharts.com

SPY AND IWM EXTEND CONSOLIDATIONS ... Link for today's video. After a big move from late June to mid July, stocks turned indecisive the last few weeks as the market consolidated. Chartists can now watch the consolidation lows in the major index ETFs for signs that a correction is...   READ MORE 

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COPPER, MINING AND STEEL ETFS EXTEND BOUNCE -- SCTR REMAINS RELATIVELY LOW THOUGH -- FINANCE SECTOR STARTS UNDERPERFORMING -- XLF BREADTH INDICATORS TURN DOWN -- GOLD SURGES, BUT FALLS SHORT OF BREAKOUT

by John Murphy,

Chief Technical Analyst, StockCharts.com

COPPER, MINING AND STEEL ETFS EXTEND BOUNCE - SCTRS REMAIN RELATIVELY LOW THOUGH... Link for today's video. The Copper Miners ETF (COPX), the Metals and Mining ETF (XME) and the Steel ETF (SLX) were three of the best performing industry group ETFs this week. In fact, these three...   READ MORE 

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FALLING DOLLAR GIVES BOOST TO EUROPEAN SHARES -- EUROPEAN STOCK INDEXES BREAK THROUGH RESISTANCE BARRIERS -- GERMANY ISHARES ARE CHALLENGING 2011 HIGH -- BOUNCING YEN HURTS JAPANESE STOCKS -- EUROPE LOOKS LIKE BEST BET FOR FOREIGN STOCK DIVERSIFICATION

by John Murphy,

Chief Technical Analyst, StockCharts.com

DOLLAR THREATENS SUPPORT ZONE... The U.S. Dollar has been falling since the start of July, when it failed a test of its May peak. It's now nearing a test of an important support level. Chart 1 shows the PowerShares US Dollar Index (UUP) threateningn its July intra-day...   READ MORE 

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OBV HITS NEW HIGH FOR SPY AND QQQ -- SEMIS AND RETAILERS LEAD PULLBACK -- HOME CONSTRUCTION ISHARES TESTS NECKLINE -- THE HEAD-AND-SHOULDERS PATTERN THAT WASN'T -- BRIC SPDR MAINTAINS POSITIVE CORRELATION WITH THE CRB INDEX

by John Murphy,

Chief Technical Analyst, StockCharts.com

OBV HITS NEW HIGH FOR SPY AND QQQ... Link for today's video. The S&P 500 ETF (SPY) broke above its May highs in July and these highs are turning into the first support zone. Chart 1 shows this support zone in the 167.5 area. Since...   READ MORE 

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A SECULAR BULL WITH NO SIGNS OF DISTRIBUTION -- XRT AND XLY REACH CHANNEL TREND LINES -- REITS SHOW RELATIVE WEAKNESS -- HOME CONSTRUCTION ISHARES EXTENDS ITS STALL -- UTILITIES SPDR STALLS NEAR KEY RETRACEMENT

by John Murphy,

Chief Technical Analyst, StockCharts.com

A SECULAR BULL WITH NO SIGNS OF DISTRIBUTION... Link for today's video. From a purely technical standpoint, it is pretty safe to assume that all time highs occur in secular up trends. With an all time high in April, the S&P 500 joined the Russell 2000,...   READ MORE 

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MARKING FIRST SUPPORT FOR THE S&P 500 -- CONSUMER DISCRETIONARY AND INDUSTRIALS SECTORS HIT NEW HIGHS -- KEY BREADTH INDICATORS CONFIRM INDICES -- NET NEW HIGHS EXPAND AGAIN -- SMALL-CAPS CONTINUE TO SHOW RELATIVE STRENGTH

by John Murphy,

Chief Technical Analyst, StockCharts.com

MARKING FIRST SUPPORT FOR THE S&P 500... Link for today's video. The Labor Department reported that the economy added 162,000 non-farm payrolls in July. This number was below expectations and marked the smallest increase in four months. Stocks futures quickly erased their gains and Treasury...   READ MORE 

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DOW TRANSPORTS SURGE TO RECORD HIGH TODAY -- TRUCKING LEADER CON-WAY HITS NEW THREE-YEAR HIGH -- TRANPORTATION ISHARES ARE A GOOD WAY TO PLAY TRANSPORTATION RALLY -- BOND YIELD JUMPS ON STRONG ECONOMIC NEWS -- STOCKS HIT NEW RECORDS

by John Murphy,

Chief Technical Analyst, StockCharts.com

DOW TRANSPORTS CONFIRM NEW RECORD IN THE INDUSTRIALS... The Dow Industrials and Transports are hitting new record highs together once again. That's a sign of an ongoing bull market. [Dow Theory holds that an upside breakout in either one needs to be confirmed by a similar breakout in...   READ MORE 

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TREASURIES BOUNCE AFTER FED STATEMENT -- QQQ GRABS THE LEAD WITH A NEW HIGH -- RETAILERS LEAD CONSUMER DISCRETIONARY SPDR WITH BREAKOUT -- HOME CONSTRUCTION ISHARES SURGES OFF NECKLINE SUPPORT -- GOLD STALLS AT BROKEN SUPPORT

by John Murphy,

Chief Technical Analyst, StockCharts.com

TREASURIES BOUNCE AFTER DISINFLATIONARY TONE IN FED STATEMENT... Link for today's video. The Fed did not change its quantitative easing stance, but did make some minor changes to its statement. In particular, the Fed noted that growth has moved from moderate to modest. The Fed also noted that...   READ MORE 

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RISING DOLLAR BENEFITS US STOCKS MORE THAN FOREIGN STOCKS -- EMERGING MARKETS ARE ESPECIALLY VULNERABLE TO STRONGER DOLLAR BECAUSE OF FALLING COMMODITY PRICES -- FIRMER DOLLAR HELPS SMALL CAPS MORE THAN LARGE CAPS -- BOUNCING YEN HURTS JAPANESE STOCKS

by John Murphy,

Chief Technical Analyst, StockCharts.com

RISING DOLLAR BENEFITS US STOCKS... The direction of the U.S. dollar has an important impact on global money flows. For one thing, the direction of the dollar impacts the direction of commodity prices, and countries tied to natural resources (more on that later). For another, dollar direction helps determine...   READ MORE 

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TREASURY YIELDS CONSOLIDATE AHEAD OF BIG ECONOMIC WEEK -- STOCKS OUTPERFORM TREASURIES -- SPY CONSOLIDATES ABOVE BREAKOUT -- THE NOOSE TIGHTENS FOR THE RETAIL SPDR -- SHANGHAI COMPOSITE AND SENSEX INDEX TURN LOWER

by John Murphy,

Chief Technical Analyst, StockCharts.com

TREASURY YIELDS CONSOLIDATE AHEAD OF BIG ECONOMIC WEEK... Link for today's video. It is a HUGE week on the economic front. The fireworks start on Wednesday with Chicago PMI and the FOMC policy statement. We then get the ISM Index, Jobless Claims and Auto-Truck sales on Thursday. The...   READ MORE 

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CONSUMER DISCRETIONARY AND TECHNOLOGY SECTORS TAKE A DIVERGENCE -- UTILITIES LEAD EQUAL-WEIGHT SECTORS -- FALLING FLAG OR NEAR TERM TOP FOR XLY? -- TECHNOLOGY SPDR HOLDS GAP TO AFFIRM RESISTANCE -- NAKED MACD TRENDS LOWER FOR COMMODITY INDEX FUND

by John Murphy,

Chief Technical Analyst, StockCharts.com

CONSUMER DISCRETIONARY AND TECHNOLOGY SECTORS TAKE A DIVERGENCE... Link for today's video. Investors shifted away from the consumer discretionary and technology sectors over the last two weeks. Even though this is a relatively short-term development, it comes with the market short-term overbought and ripe for a correction. Relative...   READ MORE 

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BOEING HITS NEW HIGH ON RECORD BACKLOG -- XLI CLOSES IN ON CHANNEL TREND LINE -- CATERPILLAR LAGS INDUSTRIALS SECTOR AND MARKET -- METALS AND MINING SPDR HITS RESISTANCE WITH SHARP REVERSAL -- HOME CONSTRUCTION ISHARES MOVES INTO GAP ZONE

by John Murphy,

Chief Technical Analyst, StockCharts.com

BOEING HITS NEW HIGH ON RECORD BACKLOG... Link for today's video. Boeing (BA) is leading the industrials sector higher with a fresh 52-week high as investors reacted positively to today's earnings report. Of note, the company reported a record $410 billion order backlog and some $40...   READ MORE