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DOW AND S&P 500 HIT RESISTANCE AT MID JUNE HIGHS -- CONSUMER DISCRETIONARY AND RETAIL SDPRS STILL UNDERPERFORMING -- AD RATIOS SHOW HIGH DEGREE OF PARTICIPATION -- S&P 500 %ABOVE 50-DAY SMA REMAINS IN BEAR MODE

by John Murphy,

Chief Technical Analyst, StockCharts.com

DOW AND S&P 500 HIT RESISTANCE AT MID JUNE HIGHS... Link for todays video. Chart 1 shows the Dow Industrials with a pattern similar to the October-December surge, only smaller. The Dow surged in October, corrected in November with a sharp pullback and then surged again at the...   READ MORE 

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HOME CONSTRUCTION ETF IS YEAR'S BIGGEST WINNER AND HAS ACHIEVED A BULLISH BREAKOUT -- LEADERS INCLUDE DHI, LENNAR, MERITAGE HOMES, AND TOLL BROTHERS -- RYLAND MAY BE NEXT -- S&P HOMEBUILDERS SPDR ALSO LOOKS STRONG -- USG CORP IS BUILDING MATERIAL LEADER

by John Murphy,

Chief Technical Analyst, StockCharts.com

HOMEBUILDING ETF ACHIEVES BULLISH BREAKOUT ... The latest Euro rescue package announced on Friday caused a sharp upturn in risk assets at week's end. Global stocks and commodities soared, while bonds and the dollar fell. The Euro and most other foreign currencies surged. Arthur Hill covered Friday's...   READ MORE 

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EU AGREEMENTS PUSH SPANISH AND ITALIAN STOCKS HIGHER -- S&P 500 ESTABLISHES KEY SUPPORT LEVEL -- ELLIOTT WAVE PROJECTIONS FOR WAVE-C IN $SPX -- GOLD HOLDS SUPPORT WITH BIG SURGE -- SPOT LIGHT CRUDE BOUNCES OFF 2011 LOW

by John Murphy,

Chief Technical Analyst, StockCharts.com

EU AGREEMENTS PUSH SPANISH AND ITALIAN STOCKS HIGHER... Link for todays video. EU leaders delivered another grand announcement that moved markets all over the world. In short, EU leaders agreed to form a banking union in the future. They also agreed to support sovereign debt markets in Spain and Italy...   READ MORE 

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HEALTHCARE SECTOR WEAKENS AFTER SUPREME COURT UPHOLDS OBAMACARE -- INSURERS FALL WHILE HOSPITAL OPERATORS SURGE -- S&P 500 NEARS TEST OF SUPPORT -- COMMODITIES SLUMP ON RISING DOLLAR -- BOND YIELDS CONTINUE TO DECLINE

by John Murphy,

Chief Technical Analyst, StockCharts.com

FALLING BOND YIELDS WEIGH ON STOCKS... Bond yields continue to drop. Chart 1 shows a downtrend line defining the last downleg in the 10-Year T-Note yield that started in mid-March. After consolidating throughout most of June, the TNX may be on the verge of falling even further. The hourly bars...   READ MORE 

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QQQ HITS ITS MOMENT-OF-TRUTH -- DOW TRANSPORTS BREAKS RISING WEDGE TRENDLINE -- DISSECTING THE INDUSTRY GROUPS IN THE INDUSTRIALS SECTOR -- TRUCKING INDEX BREAKS KEY SUPPORT LEVEL -- PORTUGAL VERSUS SPAIN PREVIEW

by John Murphy,

Chief Technical Analyst, StockCharts.com

QQQ HITS ITS MOMENT-OF-TRUTH ... Link for todays video. Chart 1 shows the Nasdaq 100 ETF (QQQ) breaking below the lower trendline of a rising wedge. This break follows a failure near broken resistance and the 50-61.80% retracement zone. Rising wedges are typically bearish patterns that form as counter trend...   READ MORE 

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STOCKS PLUNGE AHEAD OF HEALTHCARE RULING AND EU SUMMIT -- COMPARING SPY MACD WITH OCTOBER 2011 -- DOLLAR AND TREASURIES SURGE IN FLIGHT TO SAFETY -- S&P 500 %ABOVE 150-DAY SMA ENTERS BATTLE ZONE -- ITALY AND FRANCE LEAD EU STOCKS LOWER

by John Murphy,

Chief Technical Analyst, StockCharts.com

STOCKS PLUNGE AHEAD OF HEALTHCARE RULING AND EU SUMMIT... Link for todays video. Technical analysts do not like to focus on the news, but there are two big events unfolding this week. While I do not know how these events will unfold, it is pretty safe to say that these...   READ MORE 

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SETTING DOWNSIDE TARGETS FOR S&P 500 AND THE DOW -- XLY FORMS BEARISH WEDGE AND HITS RESISTANCE -- SILVER TRUST TESTS 2011 LOW AS BASE METALS ETF BREAKS DOWN -- GOLD FAILS TO HOLD BREAKOUT AND SETS UP SUPPORT TEST

by John Murphy,

Chief Technical Analyst, StockCharts.com

SETTING DOWNSIDE TARGETS FOR S&P 500 AND THE DOW... Link for todays video. The European debt crisis has certainly dominated the news over the last few months and EU problems have been blamed for weakness in US equities. While EU woes may be partly to blame, I think...   READ MORE 

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BIG DROP IN FOREIGN STOCKS PULLS US MARKET LOWER -- DOLLAR BOUNCES AS COMMODITIES DROP -- STOCK INDEXES SLIP BACK BELOW 50--DAY LINES -- FED POLICY MAY ACTUALLY BE HURTING STOCKS

by John Murphy,

Chief Technical Analyst, StockCharts.com

FOREIGN STOCK ETFS GAP LOWER ... Foreign stocks are having a really bad day. Chart 1 shows EAFE iShares (EFA) gapping 4% lower. In so doing, the EFA has left a potential "island reversal" top behind. [An island reversal is formed when an up gap is followed shortly by...   READ MORE 

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10-YEAR TREASURY YIELD REMAINS BELOW SUPPORT BREAK -- S&P 500 STALLS AT KEY RETRACEMENT LEVEL -- OIL FALLS SHARPLY ON SUPPLY SURGE -- DOLLAR BULLISH ETF HITS SUPPORT FROM RETRACEMENT ZONE

by John Murphy,

Chief Technical Analyst, StockCharts.com

10-YEAR TREASURY YIELD REMAINS BELOW SUPPORT BREAK... Link for todays video. Noting recent weakness in the economy and disappointing employment growth, the Fed voted to extend operation twist until yearend. This means the Fed will sell treasuries with short maturities (three years or less) and buy treasuries with longer maturities...   READ MORE 

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JUNK BONDS JUMP WHILE TREASURIES LOOK TOPPY -- MAJOR STOCK INDEXES CLEAR 50-DAY AVERAGES -- FEDEX JUMPS 3% ON STRONG VOLUME -- FALLING DOLLAR TESTS MARCH PEAK -- COMMODITIES EXPERIENCE MINOR BOUNCE -- FED ANNOUNCEMENT TOMORROW MAY TEST STOCK RALLY

by John Murphy,

Chief Technical Analyst, StockCharts.com

HIGH YIELD BOND ETF SURGES ... Action within the various bond categories show more optimism. Chart 1 shows the IBoxx High Yield Corporate Bond Fund (HYG) surging to the highest level in a month. The HYG cleared its 50-day moving average last Thursday. Since junk bonds are highly correlated to stocks,...   READ MORE 

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TECHS LEAD HIGHER AS THE NASDAQ 100 ETF BREAKS RESISTANCE -- BROADCOM AND LINEAR TECH LIFT SEMIS -- AMAZON AND EBAY POWER INTERNET ETF -- RAILS AND TRUCKERS LEAD BIG MOVE IN DOW TRANSPORTS -- EUROPEAN STOCKS MOVE LOWER AFTER STRONG OPEN

by John Murphy,

Chief Technical Analyst, StockCharts.com

TECHS LEAD HIGHER AS THE NASDAQ 100 ETF BREAKS RESISTANCE... Link for todays video. US stocks were mixed on Monday, but the technology sector showed some relative strength with good gains. Chart 1 shows the Nasdaq 100 ETF (QQQ) forming an island reversal at the beginning of June, consolidating and...   READ MORE 

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S&P 500 EQUAL WEIGHT ETF UNDERPERFORMING -- DEFENSIVE SECTORS OUTPERFORMING ON SPDR PERFCHART -- XLU AND XLP HIT 52-WEEK HIGHS AS XLV BREAKS RESISTANCE -- XLY, XLK, XLF AND XLI CONSOLIDATE WITH TRADING RANGES

by John Murphy,

Chief Technical Analyst, StockCharts.com

S&P 500 ETF TURNS INDECISIVE BELOW RESISTANCE... Link for todays video. The stock market is looking ahead to next week and the potential for more stimulus. It used to be stimulus first and market response second. Now it appears that the market is getting ahead of the curve...   READ MORE 

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FALLING BOND YIELDS WEIGH ON STOCKS -- WATCHING BOND ETFS FOR SIGNS OF A TURN -- ONLY 45% OF NYSE STOCKS REMAIN ABOVE 200-DAY AVERAGE -- USE THE SECTOR SUMMARY FEATURE TO DRILL DOWN INTO LEADING SECTORS TO FIND THEIR STRONGEST INDUSTRIES AND STOCK LEADERS

by John Murphy,

Chief Technical Analyst, StockCharts.com

FALLING BOND YIELDS WEIGH ON STOCKS... My Tuesday message showed falling commodity prices weighing on stock values. The same is true with Treasury bond yields which have fallen to record lows. Falling bond yields are symptomatic of economic weakness. Chart 1 compares the yield on the 10-Year T-Note (green bars)...   READ MORE 

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ANALYZING THE 2011 RETURN TO RISK -- MARKETS REMAIN IN RISK OFF MODE AS SPY HITS RESISTANCE -- TECHNOLOGY SPDR HOLDS ISLAND REVERSAL AND QQQ HOLDS GAP -- FIRSTTRUST INTERNET ETF CHANNELS LOWER

by John Murphy,

Chief Technical Analyst, StockCharts.com

ANALYZING THE RETURN TO RISK IN OCTOBER 2011... Link for todays video. Is the current decline a correction like August 2011 or is this the start of a bigger bear move? All bear markets start as corrections, but not all corrections lead to bear markets. Even though the April-June decline...   READ MORE 

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EAFE ISHARES TEST POTENTIAL NECKLINE -- FOREIGN STOCKS ARE OVERSOLD, BUT STILL IN DOWNTRENDS -- S&P 500 CLIMBS BACK ABOVE 200-DAY AVERAGE -- WEEKLY MACD LINES, HOWEVER, REMAIN NEGATIVE -- TUMBLING COMMODITY PRICES ALSO WEIGH ON STOCKS

by John Murphy,

Chief Technical Analyst, StockCharts.com

EAFE ISHARES NEAR TEST OF NECKLINE... I recently wrote about the possibility that foreign stocks were tracing out "head and shoulder" tops. Chart 1 shows an updated version of that potential pattern. The pattern is marked by three prominent peaks over the last two years, with the middle...   READ MORE 

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DIA FAILS AT BROKEN SUPPORT AGAIN -- MID-CAP PRICE RELATIVE BREAKS TO NEW LOW -- BASE METALS ETF NEARS 52-WEEK LOW -- SHANGHAI COMPOSITE BREAKS TRIANGLE SUPPORT -- ITALIAN STOCKS LEAD EUROPE LOWER WITH WEAK CLOSE

by John Murphy,

Chief Technical Analyst, StockCharts.com

DIA FAILS AT BROKEN SUPPORT AGAIN... Link for todays video. A key tenet of technical analysis suggests that broken support turns into resistance. The reverse is also true as broken resistance turns into support. While it does not work all the time, it works often enough to keep in mind...   READ MORE 

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CONSUMER DISCRETIONARY SPDR FAILS AT RESISTANCE -- RETAIL SPDR HOLDS DOUBLE TOP SUPPORT BREAK -- STOCK MARKET REMAINS ON DEFENSIVE FOOTING OVERALL -- TELECOM ETF STARTS SHOWING RELATIVE STRENGTH -- VERIZON AND AT&T HIT 52-WEEK HIGHS

by John Murphy,

Chief Technical Analyst, StockCharts.com

CONSUMER DISCRETIONARY SPDR FAILS AT RESISTANCE... Link for todays video. As with August 2011, volatility invaded the stock market over the last three weeks. Chart 1 shows the Consumer Discretionary SPDR (XLY) breaking below support in mid May, failing at broken support in late May and moving sharply lower last...   READ MORE 

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EURO RISES AND TREASURIES FALL AS MARKET TAKES ON SOME RISK -- FINANCE SECTOR LEADS OVERSOLD BOUNCE IN STOCKS -- SEMICONDUCTOR ETF BOUNCES OFF FIBONACCI RETRACEMENT -- REVISITING THE 2010 AND 2011 CORRECTIONS IN THE S&P 500

by John Murphy,

Chief Technical Analyst, StockCharts.com

EURO RISES AND TREASURIES FALL AS MARKET TAKES ON SOME RISK... Link for todays video. Stocks are getting an oversold bounce this week as the Euro rebounds from oversold levels and treasuries correct their excesses. Chart 1 shows the Euro Currency Trust (FXE) rebounding back towards 125 the last four...   READ MORE 

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S&P 500 FIRMS AFTER BREAKING 200-DAY MOVING AVERAGE -- QQQ FIRMS IN FIBONACCI RETRACEMENT ZONE -- REAL ESTATE ISHARES TESTS SUPPORT ZONE -- GLD SURGES OFF SUPPORT AS STOCHASTIC OSCILLATOR TURNS UP -- SILVER ETF REMAINS IN CONSOLIDATION AND LAGS GOLD

by John Murphy,

Chief Technical Analyst, StockCharts.com

S&P 500 FIRMS AFTER BREAKING 200-DAY MOVING AVERAGE... Link for todays video. Stocks got slammed last Friday after yet another economic report came in below expectations. Actually, a few economic reports came in below expectations last week (Chicago PMI, jobless claims, non-farm payrolls, ISM Manufacturing). This trend continued...   READ MORE 

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STOCKS HIT BY LESS-THAN-EXPECTED JOBS GROWTH -- CONSUMER DISCRETIONARY SPDR FAILS AT BROKEN SUPPORT ZONE -- FINANCE AND INDUSTRIALS SPDRS TEST 200-DAY SMAS -- OIL AND COPPER FOLLOW STOCK MARKET LOWER -- SMALL-CAPS CONTINUE TO SHOW RELATIVE WEAKNESS

by John Murphy,

Chief Technical Analyst, StockCharts.com

STOCKS HIT BY LESS-THAN-EXPECTED JOBS GROWTH... Link for todays video. Economic reports have been coming in below expectations over the last two months and todays employment report was no exception. While I would not call the numbers outright negative, job growth was clearly less-than-expected in May and prior months were...   READ MORE 

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INTERMARKET TRENDS TURN MORE NEGATIVE FOR STOCKS -- NEW LOWS BY BOND YIELD AND COMMODITIES ARE SIGNS OF WEAKNESS -- SO ARE WEAKER FOREIGN STOCKS WHICH MAY BE TRACING OUT A HEAD AND SHOULDERS TOP -- DOLLAR AND YEN RISE WHILE OTHER CURRENCIES TUMBLE

by John Murphy,

Chief Technical Analyst, StockCharts.com

BOND YIELDS AND COMMODITIES HIT NEW LOWS... Everywhere I look I see more serious warning flags for the U.S. stock market. Two of them are coming from recent breakdowns in bond yields and commodity prices. Chart 1 shows the 10-Year T-Note Yield (green line) and CRB Index (brown line)...   READ MORE 

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S&P 500 AND RUSSELL 2000 FAIL AT BROKEN SUPPORT -- DOLLAR HITS NEW HIGHS AS EURO PLUNGES TO NEW LOWS -- 10-YEAR TREASURY YIELD BREAKS BELOW SEPTEMBER LOW -- GOLD ESTABLISHES FIRST RESISTANCE AND TESTS SUPPORT

by John Murphy,

Chief Technical Analyst, StockCharts.com

S&P 500 AND RUSSELL 2000 FAIL AT BROKEN SUPPORT ... Link for todays video. Concerns in Europe spread across the Atlantic as selling pressure hit stocks on Wednesday. Todays selling pressure comes after an oversold bounce that extended to Tuesday. Chart 1 shows the S&P 500 breaking...   READ MORE 

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SPY REMAINS BELOW SUPPORT BREAK -- BROKEN SUPPORTS MARK FIRST RESISTANCE FOR XLY AND XLI -- XLF AND SMH TESTS 200DAY MOVING AVERAGES -- GOLD BATTLES SUPPORT AS STOCHASTICS REMAINS OVERSOLD -- DOLLAR AND TREASURIES CONTROL THE RISK-OFF TRADE

by John Murphy,

Chief Technical Analyst, StockCharts.com

SPY REMAINS BELOW SUPPORT BREAK... Link for todays video. After a shellacking the first half of May, stocks finally firmed this week and the major index ETFs moved into short-term trading ranges. This, however, is not enough to undo the technical damage done the first three weeks of May. We...   READ MORE 

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SETTING SUMMER TARGETS FOR THE DOW AND NASDAQ -- XLY AND XLK REVERSE AT CHANNEL TRENDLINES -- XLI AND XLF SHOW RELATIVE WEAKNESS -- DEFENSIVE SECTORS NOT IMMUNE, BUT SHOULD HOLD UP BETTER -- LONG-TERM MOMENTUM TURNS NEGATIVE FOR ALL ORDS AND HANG SENG

by John Murphy,

Chief Technical Analyst, StockCharts.com

SETTING SUMMER TARGETS FOR THE DOW AND NASDAQ ... Link for todays video. As outlined in market messages since mid May, the major stock indices have broken key support levels and several breadth indicators have turned bearish. The bulk of the evidence clearly shifted from bullish to bearish over the last...   READ MORE 

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RISING DOLLAR KEEPS COMMODITIES UNDER PRESSURE -- EURO AND GOLD ARE TESTING SUPPORT LEVELS TOGETHER -- RALLY ATTEMPT IN S&P 500 FADES -- FOREIGN STOCKS STILL IN 2012 DOWNTRENDS

by John Murphy,

Chief Technical Analyst, StockCharts.com

DOLLAR INDEX CONTINUES TO RISE... Selling in foreign currencies is giving a continuing boost to the U.S. Dollar. Chart 1 shows the Power Shares Dollar Index Bullish Fund (DBC) climbing to the highest level in four months. The UUP recently cleared its mid-March intra-day peak at 22.47. The...   READ MORE 

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STEEL, COAL, OIL SERVICES AND NETWORKING ETFS LEAD OVERSOLD BOUNCE -- DOW INDUSTRIALS SPDR FIRMS WITH INSIDE DAY -- PERCENT OF S&P 500 STOCKS ABOVE 50-DAY PLUNGES TO BEAR LEVELS WEEKLY AROON AND MACD TURN BEARISH FOR IWM AND SPY

by John Murphy,

Chief Technical Analyst, StockCharts.com

STEEL, COAL, OIL SERVICES AND NETWORKING ETFS LEAD OVERSOLD BOUNCE ... Link for todays video. The bulls found their footing on Monday as stocks bounced from oversold levels. The hardest hit groups bounced the most as the Networking iShares (IGN), Market Vectors Coal ETF (KOL), Oil & Gas Equipment/Services SPDR...   READ MORE 

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U.S. STOCK INDEXES THREATEN 200-DAY LINES -- FOREIGN STOCK INDEXES HAVE ALREADY BROKEN THEIRS AND MAY BE TRACING OUT HEAD AND SHOULDERS TOPS -- TEST OF 2011 LOWS WILL BE CRUCIAL

by John Murphy,

Chief Technical Analyst, StockCharts.com

S&P 500 NEARS TEST OF 200-DAY AVERAGE... The slide in stocks continued this week to the point that some key support levels are about to be tested. Chart 1 shows the S&P 500 bearing down on its October high (1292) and its 200-day moving average (red...   READ MORE 

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STOCK BULLS KNOCKED DOWN WITH A BIG BEAR PUNCH -- A VOLATILE BASING PERIODS COULD BE IN THE CARDS -- SETTING SPY VOLUME AND PRICE TARGETS FOR A SELLING CLIMAX -- IS GOLD POISED TO JOIN THE SAFE-HAVEN TRADE? -- GLD HITS SUPPORT FROM DECEMBER LOW

by John Murphy,

Chief Technical Analyst, StockCharts.com

STOCK MARKET BULLS KNOCKED DOWN WITH A BIG BEAR PUNCH... Link for todays video. The decline in stocks accelerated this week with the major index ETFs and some key sector SPDRs breaking clear support levels. This could be the beginning of the end, or it could simply be the middle...   READ MORE 

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FINANCE SPDR ON THE VERGE OF TREND REVERSAL -- RETAIL SPDR TRACES OUT DOUBLE TOP -- ON BALANCE VOLUME MOVES SHARPLY LOWER FOR XLY -- HOME BUILDERS AND REITS CONTINUE SHOWING RELATIVE STRENGTH -- COMMODITIES AND BIG EMERGING MARKETS FALLING TOGETHER

by John Murphy,

Chief Technical Analyst, StockCharts.com

FINANCE SPDR ON THE VERGE OF TREND REVERSAL ... Link for todays video. The Finance SPDR (XLF) broke an important support level last week and is on the verge of breaking another this week. I first marked key support at the February-March lows in the market message on April 18th and...   READ MORE 

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CRB INDEX BREAKDOWN HURTS STOCKS -- DOLLAR SURGES AS EURO TUMBLES TO FOUR-MONTH LOW -- FOREIGN STOCKS WEAKNESS IS WEIGHING ON U.S. STOCKS -- A RISING DOLLAR, HOWEVER, STILL MAKES U.S. ASSETS A SAFER PLACE TO BE

by John Murphy,

Chief Technical Analyst, StockCharts.com

CRB BREAKDOWN HURTS STOCKS ... Last Tueday's message showed the CRB Index in the process of testing its lows formed during the second half of 2011, and warned that commodity weakness was starting to hurt stock values. Since then, the CRB has plunged to the lowest level in 20...   READ MORE 

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DOW BREAKS KEY SUPPORT WITH SHARP DECLINE -- TREASURIES SURGE IN FLIGHT TO SAFETY -- US DOLLAR FUND BREAKS APRIL HIGH -- GERMAN BUND ETF SURGES AS ITALIAN BOND ETF MOVES LOWER -- EUROPEAN STOCKS MOVE SHARPLY LOWER WITH SPAIN LEADING

by John Murphy,

Chief Technical Analyst, StockCharts.com

DOW BREAKS KEY SUPPORT WITH SHARP DECLINE... Link for todays video. The risk-off was in full force early Monday. Treasuries and the Dollar moved sharply higher as stocks, gold, the Euro and oil moved sharply lower. Chart 1 shows the Dow Industrials breaking below its March-April lows with a sharp...   READ MORE 

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S&P MIDCAP 400 AND S&P 500 EQUAL WEIGHT INDEX BATTLE SUPPORT -- DEFENSIVE SECTORS LEADING MARKET SINCE APRIL -- AD VOLUME LINES BREAK KEY SUPPORT LEVELS -- NET NEW HIGHS LINES REMAIN BULLISH OVERALL

by John Murphy,

Chief Technical Analyst, StockCharts.com

S&P MIDCAP 400 AND S&P 500 EQUAL WEIGHT INDEX BATTLE SUPPORT... Link for todays video. After sharp declines last week, stocks turned mixed this week and several indices are firming near key support levels. I have been writing about support from the March-April lows for a...   READ MORE 

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THE DOLLAR INDEX MAY BE IN THE PROCESS OF BOTTOMING -- INTERMARKET IMPLICATIONS RESULTING FROM A STRONGER DOLLAR INCLUDE WEAKER COMMODITY PRICES -- A FIRMER DOLLAR MAKES U.S. STOCKS MORE ATTRACTIVE

by John Murphy,

Chief Technical Analyst, StockCharts.com

INTERMARKET IMPLICATIONS OF A STRONGER DOLLAR... The monthy bars in Chart 1 suggest that the U.S. Dollar Index may be going through a major bottoming process. After peaking during 2002, the USD fell steadily until 2008 when it bottomed. Since then, it has been trending sideways in what appears...   READ MORE 

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DOW AND RUSSELL 2000 TESTS APRIL LOWS -- EUROPEAN TOP 100 INDEX BREAKS WEDGE TRENDLINE -- LESS THAN 50% OF $NDX AND $SPX STOCKS ARE ABOVE THEIR 50-DAY SMAS -- COMMODITY CHANNEL INDEX MOVES BELOW -200 FOR GLD

by John Murphy,

Chief Technical Analyst, StockCharts.com

DOW AND RUSSELL 2000 TESTS OFF APRIL LOWS ... Link for todays video. With a sharp decline the last few days, chart 1 shows the Dow Industrials testing its April lows and key support in the 12700 area. A break below these lows would forge a lower trough and argue for...   READ MORE 

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MARKET RESUMES SELLING -- RETAILERS GET MARKED DOWN -- DOLLAR BOUNCE KEEPS PRESSURE ON COMMODITIES -- GOLD TUMBLES AS EURO BREAKS SUPPORT -- TREASURIES CONTINUE TO RALLY

by John Murphy,

Chief Technical Analyst, StockCharts.com

RETAILERS GET DISCOUNTED... Selling has resumed in stocks this morning. The biggest percentage losses are appearing in consumer discretionary stocks, and retailers in particular. Chart 1 shows the Consumer Discretionary SPDR (XLY) falling below its 50-day line for the first time this year. That had been one of the market&...   READ MORE 

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USING TRIX AND AROON FOR IDENTIFY THE LONG-TERM TREND -- FINANCE SPDR FIRMS NEAR APRIL LOWS -- REGIONAL BANK SPDR FORMS TRIANGLE CONSOLIDATION -- RETAIL SPDR FORMS WEEKLY DARK CLOUD PATTERN -- DOLLAR BULLISH ETF BOUNCES OFF LONG-TERM TRENDLINE

by John Murphy,

Chief Technical Analyst, StockCharts.com

USING TRIX AND AROON FOR IDENTIFY THE LONG-TERM TREND... Link for todays video. A few months ago I featured a simple trend identification system using the 18-week Aroon oscillators and the Trix oscillator (10,6). You can read more about both indicators in our ChartSchool. Aroon is a directional indicator...   READ MORE 

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NASDAQ LEADS REST OF MARKET LOWER -- A DEEPER CORRECTION NOW APPEARS LIKELY -- WEAK COMMODITIES ALSO WEIGH ON STOCKS AS BONDS RALLY -- YEN RALLIES AS AUSSIE DOLLAR WEAKENS

by John Murphy,

Chief Technical Analyst, StockCharts.com

STOCKS INDEXES WEAKEN ON RISING VOLUME... It looks like traders and investors took the "sell in May" mantra seriously this week. Stocks fell sharply after Friday morning's weak April jobs report was released. The worst performance came in the Power Shares QQQ Trust which led the...   READ MORE 

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QQQ FAILS TO HOLD BREAKOUT AS CCI TURNS NEGATIVE -- IWM KEEPS HEAD-AND-SHOULDERS PATTERN ALIVE -- TREASURIES MOVE HIGHER AS STOCKS MOVE LOWER -- OIL BREAKS RISING WEDGE SUPPORT -- ENERGY SPDR FAILS AT KEY RETRACEMENT ZONE

by John Murphy,

Chief Technical Analyst, StockCharts.com

QQQ FAILS TO HOLD BREAKOUT AS CCI TURNS NEGATIVE... Link for todays video. Stocks fell after the employment report showed non-farm payrolls increasing just 115,000, which was below expectations. Todays report caps a week of less-than-stellar economic reports. While I would not consider this weeks economic reports bad, they...   READ MORE 

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CONSUMER DISCRETIONARY SPDR LEADS SECTORS HIGHER -- JUNK BOND ETFS HIT 52-WEEK HIGHS -- TREASURY BOND ETF STALLS AT KEY RETRACEMENT -- DOLLAR BULLISH ETF BOUNCES OFF FEBRUARY LOW -- EURO ETF KEEPS DESCENDING TRIANGLE ALIVE

by John Murphy,

Chief Technical Analyst, StockCharts.com

CONSUMER DISCRETIONARY SPDR LEADS SECTORS HIGHER... Link for todays video. The Consumer Discretionary SPDR (XLY) is the only sector SPDR to hit a 52-week high this week. The Utilities SPDR (XLU) and the Consumer Staples SPDR (XLP) are close to new 52-week highs, but have yet to actually break out....   READ MORE 

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DOW INDUSTRIALS EXCEED 2008 PEAK -- DOW TRANSPORTS RIDE THE RAILS HIGHER -- KANSAS CITY SOUTHERN REACHES NEW RECORD -- S&P 500 BOUNCES OFF NEW SUPPORT -- BOND PRICES TURN DOWN AS STOCKS RALLY

by John Murphy,

Chief Technical Analyst, StockCharts.com

DOW INDUSTRIALS EXCEED 2008 HIGH... With stocks ralling nicely today, the Dow Industrials are the first to reach a new 52-week high. Chart 1 shows the Dow trading above its spring highs to resume its major uptrend. The weekly bars in Chart 2 also show the Dow moving above its...   READ MORE