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WEAKER DOLLAR HELPS GOLD MARKET TURN UP FROM OVERSOLD AREA -- THE LONGER-TERM TREND FOR GOLD, HOWEVER, IS STILL DOWN -- WEAKER DOLLAR IS ALSO HELPING EMERGING MARKET CURRENCIES AND STOCKS -- CANADIAN AND GERMAN ISHARES ARE TESTING OVERHEAD RESISTANCE

by John Murphy,

Chief Technical Analyst, StockCharts.com

DOLLAR PULLS BACK AS EURO AND YEN BOUNCE... The U.S. Dollar continues the downside correction that started in early July. The green bars in Chart 1 show the U.S. Dollar Index (UUP) trading at the lowest level in a month. The blue line line shows the Euro climbing...   READ MORE 

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HEALTHCARE ETFS LEAD MARKET WITH NEW HIGHS -- ACTAVIS BREAKS TRIANGLE RESISTANCE AS BOSTON SCI BREAKS JUNE HIGH -- 10-YEAR TREASURY YIELD HITS SUPPORT AS TLT FORMS BEAR FLAG -- AEROSPACE-DEFENSE ETF SHRUGS OFF SEQUESTER WITH NEW HIGHS

by John Murphy,

Chief Technical Analyst, StockCharts.com

HEALTHCARE ETFS LEAD MARKET WITH NEW HIGHS... Link for today's video. After a correction in June, the healthcare ETFs resumed their longer term uptrends and recorded fresh 52-week highs this month. Chart 1 shows the Healthcare SPDR (XLV) moving from the lower left of the chart to the...   READ MORE 

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A BEARISH FAILURE SWING COULD BE FORMING IN THE S&P 500 -- BIG TECHS WEIGH ON THE TECHNOLOGY SPDR -- GOLD SURGES TO RESISTANCE AND STALLS -- DOLLAR ABSORBS VOLATILITY TO MAINTAIN UPTREND -- A MACD SQUEEZE FOR THE EURO INDEX

by John Murphy,

Chief Technical Analyst, StockCharts.com

A BEARISH FAILURE SWING COULD BE FORMING IN THE S&P 500 ... Link for today's video. Chart 1 shows weekly bars for the S&P 500 with RSI in the indicator window. First, note that the overall trend is clearly up with a series of rising...   READ MORE 

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CRUDE OIL REACHES HIGHEST LEVEL IN FIFTEEN MONTHS WHICH IS BOOSTING ENERGY SHARES -- OIL SERVICE ETF IS TESTING 2013 HIGH -- SCHLUMBERGER IS BREAKING THROUGH MAY RESISTANCE -- INTEGRATED OIL & GAS INDEX HITS RECORD HIGH

by John Murphy,

Chief Technical Analyst, StockCharts.com

CRUDE OIL REACHES 15-MONTH HIGH... Chart 1 shows Light Crude Oil trading at the highest level in fifteen months. My July 5 message showed crude oil trading higher in an attempt to close the gap between it and higher priced brent crude. As of today, crude is only a dollar...   READ MORE 

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HOUSING STARTS AND BUILDING PERMITS PLUNGE -- HOME CONSTRUCTION ETF HOLD THE GAP TO WARD OFF BEARISH PATTERN -- KEY BREADTH INDICATORS SURGE TO NEW HIGHS -- HIGH-LOW LINE HAS BEEN RISING SINCE LATE NOVEMBER -- RUSSELL 2000 OUT PACES S&P 100 WITH NEW HIGH

by John Murphy,

Chief Technical Analyst, StockCharts.com

HOUSING STARTS AND BUILDING PERMITS PLUNGE... Link for today's video. The Commerce Department reported that June housing starts plunged almost 10% to 836,000 and building permits fell over 6% to 911,000. Chart 1 shows Housing Starts ($$HSNGSTARTS) sinking to their lowest level in over six months....   READ MORE 

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IWM AND QQQ LEAD, BUT BECOME SHORT-TERM OVERBOUGHT -- CONSUMER DISCRETIONARY AND FINANCE SECTORS OUTPERFORM -- SETTING FIRST SUPPORTS FOR XLF AND XLY -- IBM TESTS SUPPORT AHEAD OF EARNINGS REPORT -- INTEL BREAKS WEDGE RESISTANCE WITH GAP

by John Murphy,

Chief Technical Analyst, StockCharts.com

IWM AND QQQ LEAD, BUT BECOME SHORT-TERM OVERBOUGHT ... Link for today's video. Stocks went on a tear the last three weeks with the Russell 2000 ETF (IWM) and the Nasdaq 100 ETF (QQQ) leading the major index ETFs. It is quite positive to see these two groups leading...   READ MORE 

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GLOBAL STOCKS RALLY -- U.S. STOCK INDEXES NEAR OLD HIGH -- NASDAQ REACHES 13-YEAR HIGH -- BIG TECH LEADERS INCLUDE CISCO, KLAC, AND MICROSOFT -- DOLLAR DROP MAY GIVE BOUNCE TO OVERSOLD GOLD MARKET

by John Murphy,

Chief Technical Analyst, StockCharts.com

EAFE ISHARES CLEAR 50-DAY AVERAGE -- EMERGING MARKETS JUMP ... Yesterday's comments by Mr. Bernanke that the Fed was still in an easing mode gave a big lift to global stocks today, which has spilled over to the U.S. Chart 1, for example, shows EAFE iShares (EFA) trading...   READ MORE 

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TRANSPORTS SURGE TO TWO-MONTH HIGH -- FEDEX AND UPS ARE LEADERS IN DELIVERY SERVICES -- TRUCKING STOCK CON-WAY HITS THREE-YEAR HIGH -- S&P 500 IS CHALLENGING MID-JUNE PEAK -- THE VIX BREAKS JUNE LOW WHICH SUPPORTS HIGHER STOCK PRICES

by John Murphy,

Chief Technical Analyst, StockCharts.com

DOW TRANSPORTS SURGES... According to Dow Theory, a necessary ingredient in a bull market is coincident gains in industrial and transportation stocks. And we appear to be getting just that. Chart 1 shows the Dow Industrials having cleared its 50-day average and nearing a test of its mid-June intra-day high...   READ MORE 

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OIL SERVICE ETF BENEFITS FROM RISING OIL PRICE -- LEADERS INCLUDE BHI, NOV, AND RDC -- FRANCE AND GERMANY LEAD FOREIGN STOCK REBOUND -- RETAILERS LEAD CONSUMER DISCRETIONARY SPDR TO NEW HIGHS -- AMAZON.COM BREAKS OUT

by John Murphy,

Chief Technical Analyst, StockCharts.com

OIL SERVICE STOCKS RALLY ... Oil service stocks are finally showing some bounce. The main reason for that was last week's upside breakout in crude oil to the highest level in fourteen months. The weekly bars in Chart 1 show the Market Vectors Oil Services (OIH) moving up toward...   READ MORE 

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SMALL CAP INDEX HITS NEW HIGH -- S&P 500 CLEARS 50-DAY AVERAGE -- EUROPEAN DECISION TO LEAVE RATES UNCHANGED CAUSES POUND AND EURO TO TUMBLE AND PUSHES DOLLAR SHARPLY HIGHER -- WTI CRUDE HITS 14-MONTH HIGH AND IS CATCHING UP TO BRENT

by John Murphy,

Chief Technical Analyst, StockCharts.com

S&P 500 CLEARS 50-DAY LINE... Tuesday's message showed small caps leading large cap stocks higher. That's still the case. Chart 1 shows the S&P 600 Small Cap Index ($SML) having cleared a resistance line drawn over its May/June highs and, more...   READ MORE 

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JAPAN ETF CLEARS 50-DAY AVERAGE -- SMALL CAPS LEAD U.S. MARKET HIGHER -- SO DO CONSUMER DISCRETIONARY AND FINANCIAL STOCKS -- WEAKER STOCK INDEXES ARE BOUNCING OFF 200-DAY LINES -- RECENT UPSIDE BREAKOUT IN VIX INDEX IS NOW IN DOUBT

by John Murphy,

Chief Technical Analyst, StockCharts.com

JAPAN ETF RISES ABOVE 50-DAY AVERAGE... A falling yen is helping to lift Japanese stocks. Chart 1 shows the Japanese yen falling back below its 50-day average. A falling yen is bullish for Japanese stocks. Right on cue, Chart 2 shows the Wisdom Tree Japan Hedged Fund (DXJ) climbing above...   READ MORE 

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RISING DOLLAR HURTS COMMODITIES -- FALLING YEN BOOSTS JAPANESE STOCKS -- 50-DAY AVERAGE BLOCKS LOW VOLUME STOCK BOUNCE --BOND YIELDS REACH TWO-YEAR HIGH, BUT ARE STILL VERY LOW

by John Murphy,

Chief Technical Analyst, StockCharts.com

RISING COMMODITIES KEEPS DOWNSIDE PRESSURE ON COMMODITIES... The U.S. Dollar Index has rebounded sharply over the last two weeks (see circle in Chart 1). Global turmoil has pulled money out of foreign currencies (especially emerging markets) and into the relative safety of the U.S. dollar. That's...   READ MORE 

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USING BREADTH THRUSTS TO IDENTIFY REVERSALS -- BREADTH MOMENTUM REMAINS BEARISH FOR SPX AND NDX -- SURGE IN 10-YEAR YIELD OUTPACES RISE IN 2-YEAR -- YIELD CURVE STEEPENS TO 2011 LEVELS -- NOT ALL STOCKS ARE WEAK AS ONE ETF BREAKS TO A 52-WEEK HIGH

by John Murphy,

Chief Technical Analyst, StockCharts.com

USING BREADTH THRUSTS TO IDENTIFY REVERSALS ... Link for today's video. Programming note: I will be on vacation from June 28 to July 12 (Friday to Friday). This is the all important two-week family vacation. My contributions to Art's Charts and the Market Message will resume on...   READ MORE 

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DIRECTIONAL MOVEMENT INDICATORS TRIGGER NEW SIGNAL FOR SPY -- QQQ PLUNGES INTO SUPPORT ZONE -- CHINESE STOCKS GET HAMMERED AS SHORT-TERM RATES SURGE -- EUROPEAN TOP 100 INDEX TURNS RED YEAR-TO-DATE

by John Murphy,

Chief Technical Analyst, StockCharts.com

DIRECTIONAL MOVEMENT INDICATORS TRIGGER NEW SIGNAL FOR SPY... Link for today's video. According to the Directional Movement Indicators and the Vortex Indicator, the S&P 500 ETF (SPY) was in an uptrend from mid December until last week. After falling 2% last week and over 4% the...   READ MORE 

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S&P 500 TRIGGERS A MACD SELL SIGNAL, SETTING A CORRECTION TARGET FOR THE DOW, BREADTH LINES FAIL TO CONFIRM FOR KEY SECTORS, REGIONAL BANK ETFS SHOW RELATIVE STRENGTH, RETAIL SPDR TESTS KEY TREND LINE AFTER GAP

by John Murphy,

Chief Technical Analyst, StockCharts.com

S&P 500 TRIGGERS A MACD SELL SIGNAL ... Link for today's video. Remember "sell in May and go away"? This phrase is based on the six month cycle in the stock market. According to the Stock Trader's Almanac, the period from May to...   READ MORE 

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STOCKS EXPERIENCE BIG SELLOFF ON FED PLAN TO SLOW BOND BUYING -- SO DO FOREIGN MARKETS -- EMERGING MARKET CURRENCIES LEAD STOCKS LOWER -- RISING RATES CAUSE GOLD TO PLUNGE -- S&P 500 BREAKS BREAKS JUNE SUPPORT AS VIX TURNS UP

by John Murphy,

Chief Technical Analyst, StockCharts.com

GOLD PLUNGES ... Two factors are causing the price of gold to tumble today. One is a sharp jump in the U.S. Dollar. The other, and probably more important reason, is the jump in U.S. bond yields after yesterday's Fed announcement that it was ready to start...   READ MORE 

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TREASURY BOND ETF HITS MOMENT-OF-TRUTH -- ARE 10-YEAR TREASURY YIELDS SIMPLY RETURNING TO NORMALCY? -- RELATIONSHIP BETWEEN YIELDS AND STOCKS SOURS -- S&P 500 EQUAL-WEIGHT ETF STALLS AT CHANNEL TREND LINE

by John Murphy,

Chief Technical Analyst, StockCharts.com

TREASURY BOND ETF HITS MOMENT-OF-TRUTH ... Link for today's video. In an effort to distance myself one Fed meeting and reactionary analysis, today's commentary will come before the Fed meeting and focus on price action. Trying to second-guess a Fed moment and the market's immediate...   READ MORE 

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SEMICONDUCTOR LEADERS INCLUDE APPLIED MATERIALS, MICRON TECHNOLOGY, AND SANDISK -- FOREIGN STOCKS STABILIZE AS JAPAN REBOUNDS -- EMERGING MARKETS ARE OVERSOLD -- U.S. STOCK INDEXES EXTEND RALLY WHILE VIX STAYS BELOW CHART RESISTANCE

by John Murphy,

Chief Technical Analyst, StockCharts.com

MORE SEMICONDUCTOR LEADERS ... My June 4 message showed the Market Vectors Semiconductor ETF (SMH) trading at a new 12-year high, and three semiconductor leaders which included Intel (INTC), KLA Tencor (KLAC) , and Texas Instruments (TXN). That group continues to lead the technology sector higher. Three more semiconductor leaders are shown...   READ MORE 

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STOCKS FRONT RUN THE FED AS IWM CHALLENGES FLAG TREND LINE -- OIL BREAKS TRIANGLE CONSOLIDATION -- XLE FINDS SUPPORT NEAR BROKEN RESISTANCE -- NATURAL GAS SURGES OFF KEY RETRACEMENT ZONE -- S&P 1500 BREADTH INDICATORS EXTEND CORRECTION

by John Murphy,

Chief Technical Analyst, StockCharts.com

STOCKS FRONT RUN THE FED AS IWM CHALLENGES FLAG TREND LINE... Link for today's video. Stocks got off to a strong start on Monday with the major index ETFs surging over 1% in early trading. Note that the Fed meets on Wednesday and will make its policy statement...   READ MORE 

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TREASURIES BOUNCE AS IEF CONFIRMS OUTSIDE REVERSAL -- UTILITIES AND REIT ETFS HIT KEY RETRACEMENT ZONE -- FALLING FLAGS TAKE SHAPE IN FOUR OF NINE SECTOR SPDRS -- USING SECTOR BREADTH TO AUGMENT ANALYSIS -- AD LINES TREND LOWER FOR OFFENSIVE SECTORS

by John Murphy,

Chief Technical Analyst, StockCharts.com

TREASURIES BOUNCE AS IEF CONFIRMS OUTSIDE REVERSAL... Link for today's video. Treasury bonds are bouncing and yields are rising on Friday. This is interesting because Treasuries appeared to break down on Monday, but recovered and rebounded with a strong bounce the last two days. Chart 1 shows the...   READ MORE 

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RISING YEN PUNISHES JAPANESE STOCKS -- WISDOM TREE JAPAN ETF, HOWEVER, IS NEAR MAJOR SUPPORT ZONE -- EMERGING MARKET ISHARES CONTINUE TO WEAKEN -- FOREIGN STOCK INDEX BACKS OFF FROM CHART RESISTANCE -- DOLLAR WEAKENS AS EURO RALLIES

by John Murphy,

Chief Technical Analyst, StockCharts.com

JAPANESE STOCKS PLUNGE AS YEN BOUNCES ... Between last November and mid-May, a plunging yen pushed Japanese stocks 80% higher. Over the last three weeks, however, the short yen/ long Nikkei trade has reversed. Chart 1 shows the upturn in the Japanese yen in mid-May coinciding exactly with a peak in...   READ MORE 

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S&P 500 OUTPERFORMS ITS PEERS IN ASIA AND EUROPE -- QQQ AND SPY REMAIN WITH FALLING FLAGS -- SHANGHAI COMPOSITE FAILS TO HOLD BREAKOUT -- HANG SENG INDEX AND ALL ORDS BREAK APRIL LOWS -- JAPANESE BONDS GO BERSERK AS YEN TURNS UP

by John Murphy,

Chief Technical Analyst, StockCharts.com

S&P 500 OUTPERFORMS ITS PEERS IN ASIA AND EUROPE ... Link for today's video. There is a lot of talk lately that the US is not an island and weakness in emerging markets will eventually weigh on US stocks. US stocks, for the moment, are holding up...   READ MORE 

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RETAIL SPDR BREAKS FLAG TREND LINE WITH GAP -- CONSUMER DISCRETIONARY SECTOR HAS STRONGEST CORRELATION -- XLY STALLS AT CHANNEL TREND LINE -- NETWORKING ISHARES SHOWS RELATIVE STRENGTH -- PAYROLL TREND SUPPORTS LONG-TERM UPTREND IN STOCKS

by John Murphy,

Chief Technical Analyst, StockCharts.com

RETAIL SPDR BREAKS FLAG TREND LINE WITH GAP... Link for today's video. It is a big week for retail stocks because retail sales for May will be reported on Thursday. The Retail SPDR (XRT) best represents the retail group and retailers are important to the consumer discretionary sector....   READ MORE 

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STOCKS REMAIN STRONG, BUT SPY IS STILL RIPE FOR A CORRECTION -- S&P 1500 BREADTH NEARS SHORT-TERM OVERSOLD TERRITORY -- TREASURY ETF FIRMS AT SUPPORT AS 10-YEAR YIELD HITS RESISTANCE -- CONSOLIDATION ENDS AS GOLD CONTINUES IN DIRECTION OF BIGGER TREND

by John Murphy,

Chief Technical Analyst, StockCharts.com

STOCKS REMAIN STRONG, BUT STILL RIPE FOR A CORRECTION... Link for today's video. Tapering or no tapering, the S&P 500 ETF (SPY) remains in a long-term uptrend and shows no serious signs of selling pressure. The ETF dipped to the 160 area during the week and...   READ MORE 

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U.S. STOCKS ARE THE STRONGEST IN THE WORLD -- EMERGING MARKETS ARE WORLD'S WEAKEST -- % OF NYSE ABOVE 50- AND 200-DAY AVERAGES IS DROPPING -- TODAY'S SHARP REBOUND IN FOREIGN CURRENCIES STEADIES FOREIGN MARKETS -- S&P 500 BOUNCES OFF 50-DAY MOVING AVERAGE

by John Murphy,

Chief Technical Analyst, StockCharts.com

U.S. STOCKS ARE THE STRONGEST IN THE WORLD... U.S. stocks remain the strongest in the world. The two charts below use relative strength analysis to demonstrate that. Chart 1 plots a relative strength ratio of the S&P 500 divided by EAFE iShares (EFA) over the last...   READ MORE 

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SELLING PRESSURE CONTINUES AS STOCKS EXTEND CORRECTION -- DOW TRANSPORTS START TO LAG THE MARKET -- TREASURIES BOUNCE AS MONEY ROTATES INTO RELATIVE SAFETY -- METALS & MINING SPDR CONFIRMS BEARISH CONTINUATION PATTERN

by John Murphy,

Chief Technical Analyst, StockCharts.com

SELLING PRESSURE CONTINUES AS STOCKS EXTEND CORRECTION... Link for today's video. The stock market remained in corrected mode with weakness across the board. The major index ETFs were all lower, all nine sectors declined and almost all industry group ETFs were down. Chart 1 shows the S&...   READ MORE 

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TECHNOLOGY SPDR CONSOLIDATING WITHIN UPTREND -- MICROSOFT HAS ACHIEVED MAJOR BULLISH BREAKOUT -- INTEL IS ALSO SURGING -- THE MARKET VECTORS SEMICONDUCTOR ETF HAS REACHED HIGHEST LEVEL IN MORE THAN A DECADE -- SO HAVE KLA-TENCOR AND TEXAS INSTRUMENTS

by John Murphy,

Chief Technical Analyst, StockCharts.com

TECHNOLOGY SPDR FORMS BULLISH PENNANT AT CHART SUPPORT... One group that has benefited from May rotations out of defensive stock groups into more economically-sensitive groups is technology. As a result, technology is transitioning from a previous market laggard to an emerging market leader. I've written about this before....   READ MORE 

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MEASURING THE SECTOR SHIFT WITH PERFCHARTS -- BOND MARKET CONFIRMS CHANGE IN INTEREST RATE OUTLOOK -- XLY CORRECTS WITH A POTENTIAL BULLISH CONTINUATION PATTERN -- XLK HOLDS UP BETTER, BUT BREAKS PENNANT SUPPORT

by John Murphy,

Chief Technical Analyst, StockCharts.com

MEASURING THE SECTOR SHIFT WITH PERFCHARTS... Link for today's video. May brought about a big change in the equity market as leadership moved from the defensive sectors to the offensive sectors. We can define this shift by comparing PerfCharts for two different timeframes. The Consumer Staples SPDR (XLP)...   READ MORE 

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RISING U.S. TREASURY YIELDS UNDERCUT DEMAND FOR EMERGING MARKET STOCKS, BONDS, AND CURRENCIES -- LOCAL CURRENCY BONDS ARE HARDEST HIT BECAUSE OF WEAKER EMERGING CURRENCIES -- STRONGER DOLLAR FAVORS US OVER FOREIGN STOCKS

by John Murphy,

Chief Technical Analyst, StockCharts.com

EMERGING MARKET STOCKS FALL HARD DURING MAY... The main story of the past week has been the upside breakout in U.S. Treasury bond yields to the highest level in thirteen months, and the corresponding drop in bond prices. The jump in bond yields during the month of May contributed...   READ MORE 

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SPY AND QQQ STALL WITHIN UPTRENDS -- YIELDS SURGE AND BONDS FALL ON ECONOMIC DATA -- CRUDE'S FALLING FLAG CONTINUES TO FALL -- ENERGY SPDR BACKS OFF CHANNEL TREND LINE

by John Murphy,

Chief Technical Analyst, StockCharts.com

SPY AND QQQ STALL WITHIN UPTRENDS... Link for today's video. There is no real change in the overall picture for stocks. The big trends are up for the major index ETFs and there are no signs of significant selling pressure, but the market is still quite extended and...   READ MORE 

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BANKS ARE PLAYING CATCH-UP -- UPTURN IN HOUSING IS A BIG HELP -- SO IS THE RECENT UPTURN IN THE YIELD CURVE -- FALLING LUMBER MAY BE HINTING AT HOUSING PULLBACK -- AUTOS ARE BECOMING MARKET LEADERS -- IF INVESTORS AREN'T SELLING BONDS, WHO IS?

by John Murphy,

Chief Technical Analyst, StockCharts.com

BANKS BREAK OUT ... My Tuesday message mentioned a number of sector influences that deserve more explanation. I'll try to do that in this message. I've written recently about the impressive upturn in bank stocks, and some reasons for that upturn. Chart 1, for example, shows the...   READ MORE 

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HOMEBUILDERS JOIN RATE SENSITIVE GROUPS WITH RETREAT -- EURO BOUNCES OFF NECKLINE SUPPORT -- DOLLAR WEAKENS, BUT HOLDS BREAKOUT -- GOLD FIRMS NEAR APRIL LOWS -- CORN CHALLENGES RESISTANCE -- SOYBEANS BREAKOUT WITH BIG MOVE

by John Murphy,

Chief Technical Analyst, StockCharts.com

HOMEBUILDERS JOIN RATE SENSITIVE GROUPS WITH RETREAT... Link for today's video. Stocks continue to price in a change in Fed policy by marking down interest rate sensitive shares. John Murphy and I commented on recent weakness in utilities and REITs. Treasuries are also falling sharply as Treasury yields...   READ MORE 

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STRONG ECONOMIC NEWS PUSHES TEN-YEAR BOND YIELD TO ONE YEAR HIGH -- BOND PRICES TUMBLE AS STOCKS RISE -- AUTO STOCKS HAVE BECOME MARKET LEADERS -- UTILITIES AND REITS ARE HURT BY RISING RATES

by John Murphy,

Chief Technical Analyst, StockCharts.com

TEN-YEAR BOND YIELD JUMPS TO HIGHEST LEVEL IN A YEAR ... The backup in bond yields that started a month ago took a more serious turn today. Chart 1 shows the 10-Year Treasury Note Yield ($TNX) climbing above its March peak. That upside breakout puts the bond yield at the highest...   READ MORE 

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S&P 500 REVERSES AT CHANNEL TREND LINE -- MAY IS ALMOST OVER, BUT SIX MONTH CYCLE IS STILL HERE -- RETAILERS LEAD CONSUMER DISCRETIONARY SECTOR LOWER -- INTEREST RATE SENSITIVE ETFS GET PUMMELED -- APPETITE FOR RISK WANES AS MID-CAPS START TO LAG

by John Murphy,

Chief Technical Analyst, StockCharts.com

S&P 500 REVERSES AT CHANNEL TREND LINE... Link for today's video. The S&P 500 is overbought by most metrics and remains ripe for a correction as the month of May draws to a close. Chart 1 shows the index surging to the upper trend...   READ MORE 

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CHINA AND JAPAN LEAD GLOBAL RETREAT -- OVERBOUGHT S&P 500 SUFFERS DOWNSIDE REVERSAL DAY -- MAJOR TREND, HOWEVER, REMAINS HIGHER -- RISING BOND YIELD ALSO WORRIES STOCKS

by John Murphy,

Chief Technical Analyst, StockCharts.com

ASIAN STOCKS LEAD GLOBAL SELLOFF... The stock market downturn that started in the U.S. yesterday afternoon spread to Asia today. The Japanese stock market, which has led the world higher during 2013, fell 7% today. The weekly bars in Chart 1 show Japan iShares (EWJ) having the worst weekly...   READ MORE 

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EURO TRUST FORMS BIG BEARISH PATTERN -- DOLLAR INDEX HOLDS FLAG BREAKOUT -- BRAZILIAN REAL FUND HITS KEY RETRACEMENT -- SPOT LIGHT CRUDE CHALLENGES MAJOR RESISTANCE ZONE -- CAREFUL WITH THAT DOUBLE BOTTOM SIGHTING IN GOLD

by John Murphy,

Chief Technical Analyst, StockCharts.com

EURO TRUST FORMS BEARISH REVERSAL PATTERN... Link for today's video. The Euro accounts for over 50% of the US Dollar Index ($USD) and the US Dollar Fund (UUP). This makes it the main Dollar driver to watch. Before looking at the bearish pattern, let's review the...   READ MORE 

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RETAIL SALES SOFTEN, BUT SURPRISE -- RETAIL SPDR BECOMES OVERBOUGHT AND HITS CHANNEL TREND LINE -- INDUSTRIAL PRODUCTION REMAINS IN LONG-TERM UPTREND -- INDUSTRIALS SPDR SURGES 10% IN FOUR WEEKS -- JOBLESS CLAIMS JUMP TO SEVEN WEEK HIGH

by John Murphy,

Chief Technical Analyst, StockCharts.com

RETAIL SALES SOFTEN, BUT SURPRISE... Link for todays video. Last week we saw several key economic releases with mixed results. Retail sales beat expectations with a small gain. Industrial production came in weaker than expected with a larger decline. Jobless claims surged above 350 for the first time since early...   READ MORE 

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RELATIVE STRENGTH IN OFFENSIVE SECTORS SUPPORTS UPTREND -- BREADTH INDICATORS CONFIRM NEW HIGHS IN S&P 1500 -- SPY HITS CHANNEL WITH FIFTH WAVE -- THREE SIMPLE MOMENTUM METRICS TO DEFINE THE TREND -- S&P 500 ETF ROCKS IN A RELATIVE WORLD

by John Murphy,

Chief Technical Analyst, StockCharts.com

RELATIVE STRENGTH IN OFFENSIVE SECTORS SUPPORTS UPTREND... Link for todays video. There were concerns a month ago when the defensive sectors were leading the market, but this changed as the offensive sectors took control over the past month. PerfChart 1 shows the percentage change for the nine sector SPDRs from...   READ MORE 

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U.S. DOLLAR INDEX NEARS THREE-YEAR HIGH AND HAS BECOME WORLD'S STRONGEST CURRENCY -- EURO AND SWISS FRANC WEAKEN ON BAD ECONOMIC NEWS -- FALLING METAL PRICES WEIGH ON AUSTRALIAN DOLLAR -- SURGE IN DOLLAR/YEN REMAINS MAIN DEPRESSANT ON GOLD

by John Murphy,

Chief Technical Analyst, StockCharts.com

DOLLAR INDEX NEARS THREE-YEAR HIGH ... Chart 1 shows the U.S. Dollar Index challenging its mid-2012 high near 84. An upside breakout through that prior peak (which appears likely) would put the dollar at the highest level since mid-2010. The dollar has become the world's strongest currency. One...   READ MORE 

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ANALYZING SECTOR BREADTH -- XLY REMAINS THE STRONGEST -- DIVERGENCES FORESHADOWED SURGE IN XLF -- XLK HITS CHANNEL TREND LINE -- BREADTH CONFIRMS NEW HIGH IN XLI -- XLP BREAKS PENNANT RESISTANCE -- XLU MOVES FROM RELATIVE STRENGTH TO RELATIVE WEAKNESS

by John Murphy,

Chief Technical Analyst, StockCharts.com

ANALYZING THE SECTOR BREADTH ... Link for today's video. Today's market message is going to dive deep into sector analysis. There are nine sector SPDRs and StockCharts.com offers four different breadth indicators to complement sector analysis. Breadth indicators are designed to measure the degree of participation....   READ MORE