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CORRECTION: NYSE BULLISH PERCENT INDEX IS STILL UP BUT REMAINS IN OVERBOUGHT TERRITORY -- FRIDAY'S PRICE GAIN CAME ON VERY LIGHT VOLUME -- CONSUMER STAPLES WERE WEEK'S TOP SECTOR

by John Murphy,

Chief Technical Analyst, StockCharts.com

NYSE BULLISH PERCENT INDEX IS STILL UP... My Thursday Market Message incorrectly stated that the NYSE Bullish Percent Index had turned down. Unfortunately, the chart I showed was the point & figure chart of the NYSE Composite Index which did turn down. Chart 1 shows that happening this week when...   READ MORE 

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CONSUMER DISCRETIONARY SPDR STARTS TO UNDERPERFORM -- AUTO INDEX NEARS FIRST RETRACEMENT -- TREASURY YIELDS HOLD THE KEY TO THE STOCK MARKET -- GOLD NEARS SUPPORT FROM LONG-TERM TRADING RANGE -- SOYBEANS INDEX FORMS BULLISH REVERSAL PATTERN

by John Murphy,

Chief Technical Analyst, StockCharts.com

CONSUMER DISCRETIONARY SPDR STARTS TO UNDERPERFORM... Link for todays video. The Consumer Discretionary SPDR (XLY) is perhaps the most important of the nine sectors SPDRs because it is closely tied to the economy. Note that the housing, retail, restaurant and automobile industries are part of the consumer discretionary sector. Chartists...   READ MORE 

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MONEY ROTATES OUT OF MATERIALS AND INTO CONSUMER STAPLES -- DOW MEETS HEAVY SELLING NEAR 14000 AS MARKET ENTERS DOWNSIDE CORRECTION -- RISING DOLLAR PUNISHES COMMODITIES -- DROP IN FOREIGN CURRENCIES SHOWS LOSS OF CONFIDENCE

by John Murphy,

Chief Technical Analyst, StockCharts.com

DEFENSIVE ROTATION ... Sector rotation often gives clues about the mood of the market. This week's sector trends suggest a more defensive mood. Chart 1, for example, shows the Materials SPDR (XLB) tumbling below its 50-day average over the last two days -- and on very heavy volume. The...   READ MORE 

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EXTENDING THE RAFF REGRESSION CHANNELS FOR MDY AND IWM -- XLB BREAKS SUPPORT AND SHOWS RELATIVE WEAKNESS -- XME, COPX AND SLX WEIGH ON MATERIALS SECTOR -- COPPER ETN BREAKS WEDGE SUPPORT -- ITB FAILS TO CONFIRM NEW HIGH IN SPY

by John Murphy,

Chief Technical Analyst, StockCharts.com

EXTENDING THE RAFF REGRESSION CHANNELS FOR MDY AND IWM... Link for todays video. Last week I featured the Russell 2000 ETF (IWM) and the S&P Midcap SPDR (MDY) with Raff Regression Channels. Both ETFs moved to new highs on Tuesday and this means the Raff Regression Channels need...   READ MORE 

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QQQ HOLDS BREAKOUT WITH SMALLER CONSOLIDATION -- RSI FAILURE SWINGS TAKE SHAPE IN XLY, SPY, XHB AND IGN -- BULLISH PERCENT INDEX LAGS THE DOW INDUSTRIALS -- LIGHT CRUDE AND BRENT CRUDE FALL SHARPLY -- FALLING FLAGS FORM IN THREE EMERGING MARKET ETFS

by John Murphy,

Chief Technical Analyst, StockCharts.com

QQQ HOLDS BREAKOUT WITH SMALLER CONSOLIDATION... Link for todays video. Last week I wrote about narrowing Bollinger Bands in the Nasdaq 100 ETF (QQQ) and the ETF broke above the upper band with a close above 68 last Thursday. This move looked significant because QQQ also broke out of a...   READ MORE 

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2013 SECTOR LEADERS ARE ENERGY AND FINANCIALS -- THEIR ETFS HAVE ACHIEVED BULLISH BREAKOUTS -- FINANCIAL LEADERS INCLUDE AMERICAN EXPRESS, GOLDMAN SACHS, AND JP MORGAN -- SEMICONDUCTOR ETF NEARS 10-YEAR HIGH

by John Murphy,

Chief Technical Analyst, StockCharts.com

SECTOR LEADERS YEAR TO DATE... Chart 1 plots relative strength ratios of the energy, financial, and industrial sectors versus the S&P 500 (the black zero line). Those three sectors have been the top performers year to date. Technology has been the weakest (on a relative basis). Let'...   READ MORE 

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USING RAFF AND AROON TO DEFINE THE UPTRENDS IN MDY AND IWM -- XLI, XLY AND XLF RECORD FRESH NEW HIGHS -- BASIC MATERIALS SPDR STILL SHOWS RELATIVE WEAKNESS -- NOOSE TIGHTENS FOR CONSOLIDATION IN THE STEEL ETF

by John Murphy,

Chief Technical Analyst, StockCharts.com

USING RAFF AND AROON TO DEFINE THE UPTRENDS IN MDY AND IWM... Link for todays video. The trend is your friend  until the end. While I cannot tell you when these uptrends will end, I can offer a technical approach to define the trend and marking key support. It is...   READ MORE 

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SPY ADVANCES FOR SIX CONSECUTIVE WEEKS -- QQQ LAGS SPY, BUT REMAINS IN UPTREND -- CONSUMER DISCRETIONARY SPDR TESTS RELATIVE PERFORMANCE TREND LINE -- XRT HOLDS CONSOLIDATION BREAKOUT -- GOLD BREAKS WEDGE SUPPORT TO EXTEND DOWNTREND

by John Murphy,

Chief Technical Analyst, StockCharts.com

SPY ADVANCES FOR SIX CONSECUTIVE WEEKS... Link for todays video. The S&P 500 ETF (SPY) is up six consecutive weeks and ten of the last twelve (since mid November). Even though the advance has turned into a grind this year, chart 1 shows SPY continuing to gain ground...   READ MORE 

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QQQ BREAKS ABOVE UPPER BOLLINGER BAND - APPLE BREAKS TRIANGLE RESISTANCE AS MICROSOFT FORMS FALLING FLAG -- SEMICONDUCTOR ETF EXCEEDS 2012 HIGH -- TAIWAN, TEXAS AND ANALOG LEAD SEMIS HIGHER -- SECTOR PERFORMANCE TURNS A BIT DEFENSIVE

by John Murphy,

Chief Technical Analyst, StockCharts.com

QQQ BREAKS ABOVE UPPER BOLLINGER BAND... Link for todays video. The Nasdaq 100 ETF (QQQ) is making a move on Friday with an early surge above the upper Bollinger Band. Chart 1 shows QQQ trading above its mid January high and exceeding consolidation resistance. This breakout, should it hold, follows...   READ MORE 

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NIKKEI 225 REACHES FOUR YEAR HIGH AS YEN HITS THREE YEAR LOW -- JAPAN ISHARES LAG BEHIND NIKKEI BECAUSE OF FALLING YEN -- WISDOMTREE FUND OFFERS A WAY TO HEDGE JAPANESE STOCKS AGAINST A WEAKER YEN

by John Murphy,

Chief Technical Analyst, StockCharts.com

JAPAN STOCK INDEX REACHES FOUR YEAR HIGH ... Previous messages have written about the strong upturn in Japanese stocks resulting largely from a tumble in the Japanese yen. The weekly bars in Chart 1 show the Nikkei 225 Index trading above its early 2010 peak to reach the highest level since...   READ MORE 

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USING FIBONACCI RETRACEMENTS AND BROKEN RESISTANCE FOR SUPPORT FOR $SPX AND $INDU -- US STEEL LEADS STEEL ETF HIGHER -- SHANGHAI COMPOSITE JOINS THE OVERBOUGHT PARADE -- BOLLINGER BAND WIDTH HITS HISTORIC LOW FOR QQQ -- WATCHING THE TOP TEN STOCKS IN QQQ

by John Murphy,

Chief Technical Analyst, StockCharts.com

USING FIBONACCI RETRACEMENTS AND BROKEN RESISTANCE TO SET SUPPORT... Link for todays video. With the S&P 500 trading near a 52-week high and in a clear uptrend, trend followers would prefer long positions over short positions. However, the S&P 500 is up over 7% since December...   READ MORE 

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FEBRUARY IS THE SECOND CRUELEST MONTH -- SIX MONTH CYCLE REMAINS BULLISH UNTIL MAY -- PRESIDENTIAL CYCLE TURNED BEARISH TO START THE YEAR -- A GOOD JANUARY REALLY DOES BODE WELL FOR THE YEAR -- SPAIN AND ITALY LEAD EUROPEAN SHARES LOWER

by John Murphy,

Chief Technical Analyst, StockCharts.com

FEBRUARY IS THE SECOND CRUELEST MONTH... Link for todays video. Historical tendencies and overbought conditions suggest that the market is due for a rest, perhaps even this month. Historically, monthly returns for the S&P 500 are the strongest in December and January, and the weakest in September and...   READ MORE 

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FALLING DOLLAR BOOSTS COMMODITY PRICES -- RISING STOCKS ARE ALSO PULLING ENERGY AND INDUSTRIAL METALS HIGHER -- AGRICULTURALS ARE LAGGING BEHIND WITH PRECIOUS METALS -- STRONGER STOCK PRICES ARE DIMINISHING THE APPEAL FOR GOLD

by John Murphy,

Chief Technical Analyst, StockCharts.com

FALLING DOLLAR BOOSTS COMMODITIES... My Thursday message showed the Power Shares Dollar Index Bullish Fund (UUP) on the verge of a technical breakdown. The weekly bars in Chart 1 show the cash version of the Dollar Index. It too has a bearish look by showing the US Dollar Index threatening...   READ MORE 

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DOW CHALLENGES 14000 FOR FIRST TIME SINCE 2007 -- GLD FORMS RISING WEDGE WITHIN DOWNTREND -- WEEKLY MACD TURNS UP FOR THE COMMODITY INDEX FUND -- BASE METALS BOUNCE AS COPPER BREAKS RESISTANCE -- JOB GROWTH CONTINUES TO TREND POSITIVE

by John Murphy,

Chief Technical Analyst, StockCharts.com

DOW CHALLENGES 14000 FOR FIRST TIME SINCE 2007... Link for todays video. The Dow surged around 1% in early trading on Friday and closed in on its next big round number (14000). There is usually nothing special about 14000, but this number is special because the Dow failed at 14000...   READ MORE 

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DOLLAR MAY BE ON VERGE OF TECHNICAL BREAKDOWN -- EUROPEAN CURRENCIES RISE WHILE JAPAN TUMBLES -- FALLING JAPANESE YEN GIVES A BIG BOOST TO JAPANESE STOCKS WHICH HAVE BECOME WORLD LEADERS

by John Murphy,

Chief Technical Analyst, StockCharts.com

POWERSHARES DOLLAR ETF NEARS 52-WEEK LOW... Chart 1 shows the PowerShares US Dollar Index Bullish Fund (UUP) threatening to drop below its fourth quarter lows, which would put the UUP at the lowest level in more than a year. That would be a bearish turn for the dollar and would...   READ MORE 

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SMALL-CAPS LEAD PULLBACK AFTER FED STATEMENT -- SPY FORMS HARAMI TO SIGNAL INDECISION -- QQQ AND XLK HOLD SUPPORT AFTER APPLE DEBACLE -- RATES AT THE SHORT END ARE ALSO TURNING UP

by John Murphy,

Chief Technical Analyst, StockCharts.com

SMALL-CAPS LEAD PULLBACK AFTER FED STATEMENT... Link for todays video. The Fed has come and gone without much fanfare or policy change. Stocks were treading water leading into the statement and then sold off afterwards. Selling was not that intense and I would not read too much into this sell...   READ MORE 

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WEAKNESS IN A HANDFUL OF BIG TECHNOLOGY STOCKS (LIKE APPLE) MASKS MUCH BROADER NASDAQ STRENGTH -- NASDAQ LEADERS INCLUDE CISCO, EBAY, GOOGLE, ORACLE, AND YAHOO -- SEMICONDUCTOR ETF EXCEEDS SEPTEMBER HIGH

by John Murphy,

Chief Technical Analyst, StockCharts.com

NASDAQ MARKET SHOWS SHORT-TERM NEGATIVE DIVERGENCE... The only major stock index that has yet to exceed its 2012 high is the Nasdaq Composite. Chart 1 shows the COMPQ still trading below its September high. Of more concern is the fact that the Nasdaq has been underperforming the S&P...   READ MORE 

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INTERMARKET ENVIRONMENT REMAINS POSITIVE FOR STOCKS -- S&P 500 BECOMES OVERBOUGHT ON DAILY CHART -- S&P 500, HOWEVER, IS NOT YET OVERBOUGHT ON WEEKLY CHART -- MATERIALS SECTOR WEIGHS ON BROADER MARKET -- COPPER FORMS LARGE TRIANGLE AND DECLINES IN JANUARY

by John Murphy,

Chief Technical Analyst, StockCharts.com

INTERMARKET ENVIRONMENT REMAINS POSITIVE FOR STOCKS... Link for todays video. The PerfChart below shows the performance for six intermarket ETFs since mid November, which is when the stock market bottomed. Notice that the S&P 500 ETF (SPY), the US Oil Fund (USO) and the Euro Currency Trust (FXE)...   READ MORE 

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10-YEAR TREASURY YIELD SURGES BACK ABOVE 1.9% -- DOLLAR GETS HIT AS EURO SURGES TO 11-MONTH HIGH -- GOLD FAILS AT 1700 AS GLD MOVES SHARPLY LOWER -- GOLD AND SILVER MINERS ETFS BREAK DOWN -- METALS & MINING SPDR FAILS TO HOLD BREAKOUT AND UNDERPERFORMS

by John Murphy,

Chief Technical Analyst, StockCharts.com

10-YEAR TREASURY YIELD SURGES BACK ABOVE 1.9%... Link for todays video. Treasury yields surged and treasury bonds fell after the European Central Bank (ECB) reported that EU banks repaid more of their ECB loans (LTRO) than was expected. This positive news pushed money into riskier assets such as the...   READ MORE 

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DOW INDUSTRIALS HEADING FOR TEST OF 2007 HIGH -- A NEW RECORD HIGH BY INDUSTRIALS WOULD CONFIRM TRANSPORTATION BREAKOUT -- ASSET ALLOCATION SHIFT FROM BONDS TO STOCKS -- ENERGY ETFS NEAR BREAKOUTS

by John Murphy,

Chief Technical Analyst, StockCharts.com

DOW INDUSTRIALS NEARS 2007 HIGH ... One of the oldest ways to determine the trend of the stock market is to compare the action of the Dow Transports and Industrials. Dow Theory holds that both indexes need to be in uptrends for a market uptrend to exist. As we've...   READ MORE 

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TECHNOLOGY SPDR BREAKS WEDGE RESISTANCE -- GOOGLE AND IBM SURGE WITH BIG GAPS -- METALS & MINING SPDR AND STEEL ETF REVERSE SHORT-TERM FALLS -- 10-YEAR TREASURY YIELD BACKS OFF RESISTANCE -- RSI MOVES ABOVE 70 FOR THE S&P 500 AND DOW INDUSTRIALS

by John Murphy,

Chief Technical Analyst, StockCharts.com

TECHNOLOGY SPDR BREAKS WEDGE RESISTANCE... Link for todays video. The technology sector is getting a big boost from Google and IBM on Wednesday. Both stocks reported earnings on Tuesday and both reacted positively to these reports. IBM is the second largest component in the Technology SPDR (XLK) and Google is...   READ MORE 

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RISING PEAKS AFFIRM LONG-TERM UPTREND IN SPY -- SPY SURGES AND THEN STALLS WITH INDECISIVE CANDLESTICK -- HOUSING STARTS EXTEND UPTREND -- RETAIL SALES REFLECT GROWING ECONOMY -- JOBLESS CLAIMS EXTEND DOWNTREND

by John Murphy,

Chief Technical Analyst, StockCharts.com

RISING PEAKS AFFIRM LONG-TERM UPTREND IN SPY... Link for todays video. The long-term trends are clearly up as several major index and sector ETFs recorded 52-week highs this week. Despite these long-term uptrends, short-term conditions are getting quite overbought. The S&P 500 ETF (SPY) is up around 10%...   READ MORE 

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SPY AND MDY STALL WITHIN UPTRENDS -- QQQ DRAWS SHORT-TERM BATTLE LINES -- APPLE FAILS TO HOLD SUPPORT BREAK -- XLF HOLDS GAINS AND CONTINUES TO LEAD -- JP MORGAN AND GOLDMAN HIT NEW HIGHS -- US BANCORP AND WELLS FARGO HOLD NEW YEARS GAPS

by John Murphy,

Chief Technical Analyst, StockCharts.com

SPY AND MDY STALL WITHIN UPTRENDS... Link for todays video. Stocks are in an uptrend and upside momentum is slowing, but we have yet to see any signs of significant selling pressure and the uptrends are firmly in place. It is not uncommon for an advance to slow after a...   READ MORE 

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TRANSPORTATION ISHARES HIT NEW RECORD HIGH -- DELTA AIR LINES CLIMBS TO HIGHEST LEVEL IN TWO YEARS -- FEDEX DELIVERS FIVE YEAR HIGH -- GATX CORP ACHIEVES A NEW RECORD -- PLATINUM REACHES THREE MONTH HIGH WHICH MAY LEND SUPPORT TO GOLD

by John Murphy,

Chief Technical Analyst, StockCharts.com

TRANSPORTATION ISHARES REACHES NEW HIGH ... Since December, we've been writing about the strong upturn in transportation shares. A December 20 message showed the Dow Transports breaking out of a triangular formation which put them on track to challenge their all-time high. It also showed the DJ Transportation iShares...   READ MORE 

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QQQ STALLS AT KEY RETRACEMENT -- APPLE TRACES OUT BEARISH CONTINUATION PATTERN -- RETAIL SPDR TESTS GAP ZONE -- AAII BULLISH SENTIMENT SURGES ABOVE 40% -- NATURAL GAS FUND SURGES OFF SUPPORT

by John Murphy,

Chief Technical Analyst, StockCharts.com

QQQ STALLS AT KEY RETRACEMENT... Link for todays video. The Nasdaq 100 ETF (QQQ) and the technology sector came under selling pressure early Monday. Chart 1 shows QQQ surging above 67 with a sharp two day advance on 31-December and 2-January. We have yet to see follow through on this...   READ MORE 

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BREAKOUTS ABOUND, BUT STOCKS ARE GETTING OVERBOUGHT -- RIM RESISTANCE TURNS SUPPORT FOR S&P MIDCAP 400 -- BREAKOUTS HOLD FOR XLY, XLI AND XLF -- DOLLAR TESTS LONG-TERM SUPPORT AS EURO SURGES -- GOLD AND SILVER EXTEND THEIR STALL

by John Murphy,

Chief Technical Analyst, StockCharts.com

BREAKOUTS ABOUND, BUT STOCKS ARE GETTING OVERBOUGHT ... Link for todays video. There is not a lot to be bearish about right now. Small-caps and mid-caps are leading the market higher. The S&P MidCap 400 ($MID) and Russell 2000 ($RUT) both broke resistance and recorded 52-week highs this year....   READ MORE 

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MEDICAL EQUIPMENT STOCKS ARE LEADING HEALTHCARE HIGHER -- GROUP LEADERS ARE STRYKER, WATERS, AND ZIMMER HOLDINGS -- AIR PRODUCTS AND MONSANTO LEAD CHEMICALS HIGHER -- AUTO BREAKOUT MAY BE GIVING BOOST TO STEEL COMPANIES

by John Murphy,

Chief Technical Analyst, StockCharts.com

MEDICAL EQUIPMENT STOCKS SHOW NEW MARKET LEADERSHIP... The market's strongest sector over the past week has been healthcare. By looking at the Sector Summary list for the past week, however, it's possible to see which medical groups have led it higher. Biotechs and pharmaceutical stocks have...   READ MORE 

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TECHNOLOGY SPDR STALLS AT BROKEN RESISTANCE -- IBM AND MICROSOFT WEIGH ON TECH SECTOR -- XLE LAGS BROADER MARKET AND HITS KEY RETRACEMENT -- OIL FORMS HIGHER LOW AND HOLDS BREAKOUT -- DOLLAR ETF SURGES OFF SUPPORT

by John Murphy,

Chief Technical Analyst, StockCharts.com

TECHNOLOGY SPDR STALLS AT BROKEN RESISTANCE... Link for todays video. After surging on 31-Dec and 2-Jan, stocks took a breather over the last few days. Chart 1 shows the Technology SPDR (XLK) breaking above its December highs with a huge move. Broken resistance from these highs turns into the first...   READ MORE 

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DOW HOLDS LONG-TERM SUPPORT WITH BIG BOUNCE -- RETAIL SPDR HITS RESISTANCE AS CONSUMER DISCRETIONARY SPDR BREAKS OUT -- QQQ RETREATS FROM OVERBOUGHT LEVELS -- AMAZON HITS NEW HIGH AS APPLE TEST SUPPORT AGAIN

by John Murphy,

Chief Technical Analyst, StockCharts.com

DOW HOLDS LONG-TERM SUPPORT WITH BIG BOUNCE... Link for todays video. Lets start the week by stepping back and looking a long-term chart for the Dow Industrials. Chart 1 shows weekly bars for the Dow Industrials with the 104-week simple moving average. This two year moving average captures the long-term...   READ MORE 

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GOLD AND SILVER ETFS FALL BACK TO POTENTIAL SUPPORT -- GOLD MINERS ETF AND BPI EXTEND DOWNTRENDS -- NET NEW HIGHS SURGE TO SEPTEMBER LEVELS -- AD LINE AND AD VOLUME LINE CHALLENGE 2012 HIGHS -- NON-FARM PAYROLLS EXTEND POSITIVE RUN

by John Murphy,

Chief Technical Analyst, StockCharts.com

GOLD AND SILVER ETFS FALL BACK TO POTENTIAL SUPPORT... Link for todays video. Gold and silver were knocked quite hard after the Fed minutes on Thursday and continued lower on Friday. Some Fed members think that quantitative easing will slow or end sometime in 2013. This revelation comes after the...   READ MORE 

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RECORD HIGH BY SMALL CAP STOCKS IS A POSITIVE SIGN FOR THE MARKET -- SO IS THE UPSIDE BREAKOUT IN TRANSPORTATION STOCKS -- CHINESE ISHARES HIT 52-WEEK HIGH AND SHOW NEW GLOBAL LEADERSHIP -- THAT'S ALSO GOOD FOR COMMODITY MARKETS AND COPPER IN PARTICULAR

by John Murphy,

Chief Technical Analyst, StockCharts.com

SMALL CAP INDEX HITS RECORD HIGH... One of the most impressive technical developments of Wednesday's stock surge was the ability of the Russell 2000 Small Cap Index (RUT) to reach a record high. [The S&P 500 Midcap Index did the same]. Chart 1 shows the RUT...   READ MORE 

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STOCKS SURGE AFTER CONGRESS PASSES BILL -- SMALL-CAPS AND MID-CAPS LEAD AS IWM AND MDY FORGE 52-WEEK HIGHS -- TREASURIES PLUNGE AS MONEY MOVES OUT OF SAFE-HAVEN ASSETS -- SEMICONDUCTOR AND NETWORKING STOCKS LEAD TECHNOLOGY SECTOR

by John Murphy,

Chief Technical Analyst, StockCharts.com

STOCKS SURGE AFTER CONGRESS PASSES TAX DEAL... Link for todays video. Stocks surged on the heels of a new year and a new tax deal. Stocks ended the year strong as several major index ETFs formed bullish engulfing patterns on Monday, December 31st. These patterns reflected optimism that Washington would...   READ MORE 

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SPY STALLS BELOW SEPTEMBER HIGH -- EASE OF MOVEMENT INDICATOR IS UNUSUALLY WEAK FOR IWM -- TECHNOLOGY SPDR COULD HOLD THE KEY TO 2013 -- TREASURIES ALSO HOLD AN IMPORTANT CLUE

by John Murphy,

Chief Technical Analyst, StockCharts.com

SPY STALLS BELOW SEPTEMBER HIGH... Link for todays video. Stocks surged the last two weeks of November and then stalled the last four weeks. The overall trend remains up, but the S&P 500 ETF (SPY) is in danger of forming a lower high. Chartists should watch this carefully...   READ MORE 

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AUTOS ARE NOW THE STRONGEST PART OF DISCRETIONARY SECTOR -- FORD AND GM ARE TESTING 2012 HIGHS -- VOLKSWAGEN TRADES AT THREE YEAR HIGH -- TOYOTA GETS BIG BOOST FROM WEAK YEN -- RETAILERS WEAKEN AS S&P 500 FALLS BELOW 50-DAY LINE

by John Murphy,

Chief Technical Analyst, StockCharts.com

CONSUMER DISCRETIONARY SPDR HAS LED ALL YEAR... The market's two strongest sectors during 2012 have been financials and consumer discretionary. After hitting a new record high earlier this month, the Consumer Discretionary SPDR (XLY) has started to slip a bit, but is still holding up better than the...   READ MORE 

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SETTING MOMENTUM SUPPORT FOR SPY AND QQQ -- S&P 500 STOCKS ABOVE 200-DAY CONTINUES TO IMPROVE -- BULLISH PERCENT INDEX STRUGGLES FOR CONSUMER DISCRETIONARY SECTOR -- FINANCE AND TECH BPIS PICK UP THE SLACK -- OIL MAKES ANOTHER GO AT RESISTANCE

by John Murphy,

Chief Technical Analyst, StockCharts.com

SETTING MOMENTUM SUPPORT FOR SPY AND QQQ... Link for todays video. Chart 1 shows the S&P 500 ETF (SPY) with the True Strength Index generating four oscillator signals over the past year. The True Strength Index is a momentum oscillator that measures the momentum of double-smoothed price changes....   READ MORE 

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FISCAL CLIFF FEARS HIT OVERBOUGHT STOCK MARKET -- TREASURIES ATTRACT MONEY AS SAFE-HAVENS -- US DOLLAR GETS A BOUNCE OFF SUPPORT -- RETAIL SPDR STILL STRUGGLING -- MANY RETAIL STOCKS ARE LAGGING THE S&P 500 -- MERRY CHRISTMAS!

by John Murphy,

Chief Technical Analyst, StockCharts.com

FISCAL CLIFF FEARS HIT OVERBOUGHT STOCK MARKET... Link for todays video. Fiscal cliff fears hit the markets on Friday as money moved from risky assets to relative safe-havens. Also note that stocks and the Euro were quite overbought, while Treasuries and the Dollar were oversold. Perhaps the fiscal cliff was...   READ MORE 

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GOLD AND THE DOLLAR ARE DROPPING TOGETHER WHICH IS UNUSUAL -- THE FALLING YEN MAY HAVE SOMETHING TO DO WITH IT -- SINCE MID-2007, GOLD AND THE YEN HAVE RISEN TOGETHER -- A PEAK IN THE YEN APPEARS TO BE DRAGGING THE PRICE OF GOLD LOWER

by John Murphy,

Chief Technical Analyst, StockCharts.com

GOLD AND THE DOLLAR ARE FALLING TOGETHER... One of the most consistent intermarket principles is that gold (and most commodities) usually trend in the opposite direction of the U.S. Dollar. That inverse relationship has broken down of late. Chart 1 compares the Gold Trust (GLD) to the Dollar Index...   READ MORE 

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NASDAQ 100 EQUAL-WEIGHT ETF BREAKS BIG TRIANGLE -- 10-YEAR TREASURY YIELD REACHES MOMENT-OF-TRUTH -- GOLD SPDR REACHES CENTER OF LONG CONSOLIDATION -- GOLD MINERS ETF STALLS AT SUPPORT -- HOUSING STARTS DECLINE, BUT UPTREND REMAINS

by John Murphy,

Chief Technical Analyst, StockCharts.com

NASDAQ 100 EQUAL-WEIGHT ETF BREAKS BIG TRIANGLE... Link for todays video. The Nasdaq 100 ETF (QQQ) has been under pressure because its biggest component (Apple) fell over 20% from its late September high. Apple accounted for over 20% of the ETF in September, but now accounts for a mere 16....   READ MORE 

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DISCRETIONARY, FINANCIALS, AND INDUSTRIALS ARE HITTING NEW HIGHS WHICH SHOWS INVESTORS TURNING MORE OPTIMISTIC -- INDUSTRIAL LEADERS INCLUDE AIRLINES AND BUILDING MATERIALS -- AIRLINE LEADERS INCLUDE JETBLUE AND SOUTHWEST

by John Murphy,

Chief Technical Analyst, StockCharts.com

THREE SECTOR BREAKOUTS ... Sector performance over the last month has turned more positive for the stock market. The fact that stock sectors sensitive to the economy are leading it higher is a sign of more confidence. In fact, the top three sectors are hitting new 52-week highs today and achieving...   READ MORE 

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HAMMERS, HANGING MEN, SHOOTING STARS AND INVERTED HAMMERS -- SPY FORMS BEARISH CANDLESTICK PAIR -- NASDAQ BATTLES RESISTANCE IN THE 3000 AREA -- BANKING STOCKS CONTINUE TO LEAD MARKET HIGHER -- OIL BOUNCES OFF RANGE SUPPORT

by John Murphy,

Chief Technical Analyst, StockCharts.com

HAMMERS, HANGING MEN, SHOOTING STARS AND INVERTED HAMMERS... Link for todays video. The S&P 500 ETF (SPY) got a big bounce in the second half of November and then stalled with opposing candlesticks the first two weeks of December. Before looking at the SPY chart, lets review a...   READ MORE