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MARKETS END WEEK ON A STRONG NOTE -- S&P 500 STAYS IN TWO-WEEK TRADING RANGE -- TRIANGULAR SHAPE OF THAT RANGE SUGGESTS UPSIDE RESOLUTION -- HIGHER EUROPEAN SHARES ARE ALSO HELPING -- FALLING DOLLAR BOOSTS GOLD AND COMMODITIES

by John Murphy,

Chief Technical Analyst, StockCharts.com

S&P 500 STAYS IN SHORT-TERM CONSOLIDATION PATTERN ... The bars in Chart 1 pretty much tell the story of the week's trading. After all is said and done, very little changed from a trending standpoint. That has kept the S&P 500 in a two-week holding...   READ MORE 

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ITALIAN BOND ETN PLUNGES TO NEW LOW -- ITALIAN INDEX FORMS BEARISH CONTINUATION PATTERN -- EURO 100 INDEX REMAINS HIGHLY CORRELATED TO S&P 500 -- RENKO CHARTS FILTER NOISE AND SHOW SUPPORT -- SPX BULLISH PERCENT REMAINS IN UPTREND

by John Murphy,

Chief Technical Analyst, StockCharts.com

ITALIAN BOND ETN PLUNGES TO NEW LOW... Link for todays video. The markets remain fixated on the European sovereign debt issues and, in particularly, Italian bond yields. While I cannot offer deeper insight into Italian politics, I can make a pretty good Bolognese and can analyze key charts pertaining to...   READ MORE 

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STOCK RALLY IS IN JEOPARDY AS MARKETS FALL BACK BELOW 200-DAY AVERAGES -- TEST OF SUPPORT IS LIKELY -- RISING DOLLAR PUTS DOWNSIDE PRESSURE ON COMMODITIES -- US TREASURY BONDS ARE RALLYING

by John Murphy,

Chief Technical Analyst, StockCharts.com

S&P 500 BACK BELOW 200-DAY AVERAGE... This is a bad time for stocks to experience heavy selling. That's because the market has been struggling with its 200-day moving average which is the defining point between bull and bear markets. Evidence still suggests that the October rebound...   READ MORE 

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SPIKE IN ITALIAN YIELDS CAUSES HEAVY SELLING IN EURO STOCKS -- US STOCKS EXPECTED TO OPEN SHARPLY LOWER -- THAT PUTS THE RECENT RALLY IN JEOPARDY

by John Murphy,

Chief Technical Analyst, StockCharts.com

50-DAY AVERAGES IN JEOPARDY AGAIN... Yesterday's optimism about the turn of events in Italy has proved to be very short-lived. Italian bond yields have spiked over 7% for the first time since the Euro was created. The breaking of that threshold is causing heavy selling of European stocks....   READ MORE 

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WALMART NEARS TEST OF ALL-TIME HIGH -- CVS NEARS THREE-YEAR HIGH -- ELI LILLY NEARS 52-WEEK HIGH AND MAY BREAK SEVEN-YEAR DOWN TRENDLINE -- EAFE AND ITALY ISHARES BOUNCE OFF 50-DAY AVERAGE

by John Murphy,

Chief Technical Analyst, StockCharts.com

WALMART NEARS TEST OF 2008 HIGH... In my Market Message on October 20, I showed Wal Mart starting to catch fire for the first time in a long time. The big retailer was been showing new upside leadership in the market. That's not necessarily a good sign for...   READ MORE 

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FOREIGN STOCK ETFS ARE THREATENING 50-DAY MOVING AVERAGES -- WHILE US INDEXES STRUGGLE WITH 200-DAY LINES -- 10 YEAR YIELD FALLS BELOW ITS 50-DAY LINE -- NEWMONT MINING NEARS RECORD HIGH -- PFIZER SHOWS NEW HEALTHCARE LEADERSHIP

by John Murphy,

Chief Technical Analyst, StockCharts.com

FOREIGN ETFS THREATEN 50-DAY AVERAGE... Foreign stocks have been acting worse than U.S. stocks over the past couple of weeks. Having recently failed tests of their 200-day averages, a number of foreign stock ETFs are retesting their 50-day lines. Chart 1 shows EAFE iShares (EFA) having gapped lower last...   READ MORE 

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MARKING KEY SUPPORT LEVELS FOR THE OFFENSIVE SECTORS -- CONSUMER DISCRETIONARY SPDR HOLDS RESISTANCE BREAKOUT -- TECHNOLOGY SECTOR LAGGING THE PAST MONTH -- TREASURY BOND ETFS BREAK FALLING WEDGE RESISTANCE

by John Murphy,

Chief Technical Analyst, StockCharts.com

MARKING KEY SUPPORT LEVEL FOR THE OFFENSIVE SECTORS... Link for todays video. Earlier this week I noted that the Nasdaq 100 ETF, the Russell 2000 ETF and the S&P 500 ETF were testing broken resistance. The October surges produced breakouts and it was important that these resistance breakouts...   READ MORE 

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GOLD STOCKS CONTINUE TO STRENGTHEN -- MORE THAN 50% ARE NOW IN UPTRENDS -- GOLD LEADERS ARE RANDGOLD, IAMGOLD, AND ROYAL GOLD -- NEWMONT MINING HAS BEEN SHOWING NEW RELATIVE STRENGTH OF LATE AND MAY PROVIDE GOOD GOLD VALUE

by John Murphy,

Chief Technical Analyst, StockCharts.com

GOLD STOCKS START TO SHINE AGAIN... My Market Message from Tuesday of last week (October 25) wrote about new signs of strength emerging from an oversold gold-mining group. It showed the Market Vectors Gold Miners ETF (GDX) bouncing off chart support along its 2011 reaction lows (see circles in Figure...   READ MORE 

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NASDAQ 100 ETF TESTS IMPORTANT SUPPORT LEVEL -- INTERNET ETF STALLS AT KEY RETRACEMENT -- ELLIOTT WAVE COUNTS SUGGESTS ABC CORRECTION UNDERWAY IN $SPX -- SETTING HEIKIN-ASHI SUPPORT FOR SPY -- GOLD HOLDS RESISTANCE BREAKOUT

by John Murphy,

Chief Technical Analyst, StockCharts.com

NASDAQ 100 ETF TESTS IMPORTANT SUPPORT LEVEL... Link for todays video. Chart 1 shows the Nasdaq 100 ETF (QQQ) testing support from the mid October lows. Support there stems from two spike lows in October and Tuesdays low. This is an important test because a support break here would reverse...   READ MORE 

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GREEK DEBT REFERENDUM SENDS GLOBAL STOCKS AND COMMODITIES TUMBLING -- BONDS ARE ONLY WINNERS -- GERMAN AND FRENCH SHARES NEGATE LAST THURSDAY'S UPSIDE ACTION -- U.S. STOCK INDEXES FALL BACK BELOW THEIR 200-DAY AVERAGE

by John Murphy,

Chief Technical Analyst, StockCharts.com

EUROPEAN STOCKS TUMBLE ... The surprise announcement that Greece will hold a voter referendum on the European bailout plan has thrown the entire rescue plan into doubt and has unsettled global markets. European shares tumbled on the news and everyone else with them. Charts 1 and 2 show French and German...   READ MORE 

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STOCKS GIVE UP MOST OF THURSDAYS SURGE WITH SHARP DECLINE -- UTILITIES SECTOR HAS THE STRONGEST CHART -- EURO PLUNGES AS RUMOR BECOMES NEWS -- STRONG DOLLAR WEIGHS ON MATERIALS AND ENERGY SECTORS -- FRENCH AND GERMAN INDICES FOLLOW EURO LOWER

by John Murphy,

Chief Technical Analyst, StockCharts.com

STOCKS GIVE UP MOST OF THURSDAYS SURGE WITH SHARP DECLINE... Link for todays video. Stocks took it on the chin Monday with a broad decline that affected all sectors. The Euro kicked things off with a sharp decline. This move put the market in risk-off mode, which means money moves...   READ MORE 

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NETWORKING ISHARES BREAKS DOUBLE BOTTOM RESISTANCE -- HIGH YIELD BOND ETFS CHALLENGE SUMMER HIGHS -- BREADTH IMPROVES AS NEW 52-WEEK HIGHS EXPAND -- NASDAQ AND NYSE AD VOLUME LINES BREAK RESISTANCE

by John Murphy,

Chief Technical Analyst, StockCharts.com

NETWORKING ISHARES BREAKS DOUBLE BOTTOM RESISTANCE... Link for todays video. Chart 1 shows the Networking iShares (IGN) gapping up and breaking Double Bottom resistance with a surge above 29. I showed this chart on August 5th as the ETF had just formed a big bullish engulfing at support. IGN extended...   READ MORE 

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EURO DEBT DEAL AND STRONG GDP REPORT GIVE BIG BOOST TO GLOBAL STOCKS -- EUROPE LEADS RALLY -- DOLLAR DROP BOOSTS COMMODITIES AS BONDS DROP -- S&P 500 IS TESTING 200-DAY AVERAGE

by John Murphy,

Chief Technical Analyst, StockCharts.com

EURO DEAL GIVE GIVE BOOST TO EUROPEAN MARKETS ... The overnight announcement of a Euro debt deal is giving a huge boost to global stocks this morning. The biggest gains are in Europe. Chart 1 shows the Euro surging 1.6% to move back above its 200-day average. Chart 2 shows...   READ MORE 

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QQQ SHOWS RELATIVE WEAKNESS -- RSI STALLS IN RESISTANCE ZONE FOR QQQ -- SPY TESTS DOUBLE BOTTOM BREAKOUT -- GOLD SURGES OFF LONG-TERM SUPPORT -- GLD NEGATES BEAR FLAG WITH UPSIDE BREAKOUT -- SILVER ETF MOVES ABOVE RESISTANCE

by John Murphy,

Chief Technical Analyst, StockCharts.com

QQQ STARTS SHOWING RELATIVE WEAKNESS ... Link for todays video. The Nasdaq 100 ETF (QQQ) was a market leader from June to September, but is turning into a market laggard here in October. Chart 1 shows QQQ surging off support in early October with a move above 58. The ETF was...   READ MORE 

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DOW AND NASDAQ STRUGGLE WITH RESISTANCE AT THEIR 200-DAY AVERAGES -- TODAY'S GOLD BUYING MAY BE TIED TO STOCK SELLING -- GOLD MINER ETF IS BOUNCING OFF CHART SUPPORT AT ITS SUMMER LOW

by John Murphy,

Chief Technical Analyst, StockCharts.com

IMPORTANT TEST OF RESISTANCE... Charts 1 and 2 show the Dow Industrials and Nasdaq Composite Index struggllng with important resistance at their 200-day averages. The fact that those resistance lines are declining makes them even more formidable resistance (a declining 200-day line is more negative than a rising 200-day line)...   READ MORE 

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IWM AND MDY BREAK CONSOLIDATION RESISTANCE -- INDUSTRIALS SPDR EXCEEDS PRIOR HIGHS -- INTERNET ETF SURGES THROUGH FLAG RESISTANCE -- OIL FOLLOWS STOCKS HIGHER AS WTI MOVES ABOVE $90 -- TREASURY ETFS FIRM DESPITE RISK-ON ENVIRONMENT

by John Murphy,

Chief Technical Analyst, StockCharts.com

IWM AND MDY BREAK CONSOLIDATION RESISTANCE... Link for todays video. The S&P 500 ETF and Dow Industrials SPDR broke consolidation resistance last week. Not to be left behind, the Russell 2000 ETF (IWM) and S&P MidCap 400 SPDR (MDY) followed suit with breakouts on Monday. With...   READ MORE 

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SPY AND DIA MAKE BREAKOUT BIDS -- CONSUMER DISCRETIONARY SECTOR LEADS HIGHER -- STEEL ETF AND AIRLINE ETF FORM FLAG CONSOLIDATIONS -- HOMEBUILDING ETFS GO FROM LAGGARDS TO LEADERS

by John Murphy,

Chief Technical Analyst, StockCharts.com

SPY AND DIA MAKE BREAKOUT BIDS... Link for todays video. Stocks came charging out of the gates on Friday with the Dow Industrials SPDR (DIA) and the S&P 500 ETF (SPY) making breakout bids. Chart 1 shows DIA gapping above 116 on the open in a bid to...   READ MORE 

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EMERGING MARKET ISHARES FAIL TEST OF 50-DAY LINE WHILE S&P 500 AND NASDAQ BACK OFF FROM RESISTANCE BARRIERS -- CONSUMER DISCRETIONARY SPDR STALLS AT 200-DAY LINE -- WAL MART NEARS 52-WEEK HIGH AND IS CONSUMER STAPLE LEADER

by John Murphy,

Chief Technical Analyst, StockCharts.com

EMERGING MARKET RALLY DISAPPOINTS... Two Thursdays ago (October 6) I showed Emerging Market iShares (EEM) scoring an upside weekly reversal from important support at its mid-2010 low. I took that as one of the signs that the global selloff was putting in a fourth quarter bottom. Since then, however, the...   READ MORE 

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SMALL-CAPS SHOW RELATIVE WEAKNESS -- BROKEN RESISTANCE TURNS FIRST SUPPORT FOR XLY -- TECH SPDR FORMS EXHAUSTION GAP -- BASE METALS ETF TURNS DOWN AFTER SHORT BOUNCE -- BASIC MATERIALS SPDR IS HIGHLY CORRELATED TO BASE METALS

by John Murphy,

Chief Technical Analyst, StockCharts.com

SMALL AND MID-CAPS CONTINUE TO SHOW RELATIVE WEAKNESS... Link for todays video. With the August-September trading range, the peaks in late August and mid September established resistance levels for the major index ETFs. The S&P 500 ETF (SPY) edged above these highs with a close above 122 on...   READ MORE 

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S&P 500 HAS REACHED FIRST UPSIDE TARGET BUT SHOULD REACH HIGHER LEVELS DURING FOURTH QUARTER -- DISCRETIONARY AND TECHNOLOGY LEADERSHIP IS POSITIVE SIGN -- REGIONAL BANKS LOOK BETTER -- % OF NYSE ABOVE 50-DAY AVERAGES IS CLIMBING

by John Murphy,

Chief Technical Analyst, StockCharts.com

S&P 500 HAS REACHED TOP OF WAVE FOUR ... Two Thursdays ago (October 6) I suggested that the S&P 500 had completed a five-wave decline which should lead to a fourth quarter rebound. I also suggested that the rebound would reach the top of wave 4 which...   READ MORE 

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DOW INDUSTRIALS AND TRANSPORTS TURN BACK AT RESISTANCE -- WELLS FARGO WEIGHS ON THE FINANCE SPDR -- DOLLAR ETF BOUNCES NEAR BROKEN RESISTANCE -- GOLD FOLLOWS DOLLAR LOWER -- SILVER ETF STALLS AT RESISTANCE

by John Murphy,

Chief Technical Analyst, StockCharts.com

DOW INDUSTRIALS AND TRANSPORTS TURN BACK AT RESISTANCE... Link for todays video. Stocks moved lower on Monday with a broad decline hitting all sectors. Financial media blamed the decline on comments from German Chancellor Merkel, who poured cold water on the prospects for a comprehensive solution to European debt issues....   READ MORE 

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SPY CHALLENGES RESISTANCE AGAIN -- S&P 500 EQUAL WEIGHT ETF STILL SHOWS RELATIVE WEAKNESS -- ELLIOTT WAVE SUGGESTS AN ABC CORRECTION IN PROGRESS -- TECHNOLOGY, CONSUMER DISCRETIONARY AND UTILITIES LEAD -- TREASURIES EXTEND DECLINE AFTER RETAIL SALES JUMP

by John Murphy,

Chief Technical Analyst, StockCharts.com

SPY CHALLENGES RESISTANCE AGAIN... Link for todays video. Chart 1 shows the S&P 500 ETF (SPY) moving back above 121 in early trading on Friday and once again challenging resistance. Resistance here stems from broken support and the prior peaks in late August and mid September. So far,...   READ MORE 

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1000 POINT SURGE PUTS DOW AT RESISTANCE ZONE -- EURO RETRACES 50% OF SEPTEMBER DECLINE -- LEARNING FROM PRIOR REVERSALS AND FAILURES -- 2010 INVERSE HEAD-AND-SHOULDERS BOTTOM -- 2008 DOUBLE BOTTOM AND RISING WEDGE

by John Murphy,

Chief Technical Analyst, StockCharts.com

1000 POINT SURGE PUTS DOW AT RESISTANCE ZONE... Link for todays video. The risk-on trade continued its run as stocks moved higher again on Wednesday. Traders move into riskier assets with the risk-on trade and shun riskier assets with the risk-off trade. Risk-on favors stocks, the Euro and commodities. Risk-off...   READ MORE 

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FALLING DOLLAR BOOSTS STOCKS AND COMMODITIES -- BOND PRICES DROP AS YIELDS JUMP -- IT'S ALWAYS BETTER WHEN INTERMARKET INFLUENCES CONFIRM INDIVIDUAL CHART ANALYSIS

by John Murphy,

Chief Technical Analyst, StockCharts.com

INTERMARKET TRENDS CONFIRM CHART SIGNALS... Last Thursday I showed some traditional charts that suggested stocks and commodities were due for a rally. In the case of stocks, a lot of global stock and U.S. stock indexes had reached important support at their mid-2010 lows and were in oversold territory....   READ MORE 

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IWM VOLATILITY REMAINS HIGH AS RESISTANCE ZONE NEARS -- SEMICONDUCTOR HOLDRS CHALLENGES SEPTEMBER HIGH -- BROKEN RESISTANCE MARKS NEXT SUPPORT ZONE FOR DOLLAR -- EURO SURGES AS LATEST PLEDGE IS ANNOUNCED -- GOLD ETF CHALLENGES CONSOLIDATION RESISTANCE

by John Murphy,

Chief Technical Analyst, StockCharts.com

IWM VOLATILITY REMAINS HIGH AS RESISTANCE ZONE NEARS... Link for todays video. The Russell 2000 ETF (IWM) is up over 10% in the last five trading days. While this is certainly a strong move, it is still within the realm of the new normal in volatility. Chart 1 shows IWM...   READ MORE 

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DOW SPDR HEADS FOR BIG TEST -- RETAIL SPDR SURGES TOWARDS RESISTANCE -- TREASURIES GET HAMMERED AFTER EMPLOYMENT REPORT -- OIL BOUNCES AS BONDS RETREAT -- OIL SERVICES HOLDRS CONTINUES TO UNDERPERFORM OIL

by John Murphy,

Chief Technical Analyst, StockCharts.com

DOW SPDR HEADS FOR BIG RESISTANCE TEST... Link for todays video. Point & Figure charts are good for defining key support and resistance levels. In addition, P&F charts at StockCharts.com come with automatic trendlines that can be used to define the trend. Chart 1 shows a 1/...   READ MORE 

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A LOT OF MARKETS ARE TESTING IMPORTANT SUPPORT LEVELS AT THEIR 2010 LOWS -- THAT WOULD BE A LOGICAL SPOT FOR OVERSOLD MARKETS TO ATTEMPT A RALLY -- THE MARKET ALSO APPEARS TO HAVE COMPLETED A FIVE-WAVE DECLINE WHICH COULD LEAD TO A FOURTH QUARTER REBOUND

by John Murphy,

Chief Technical Analyst, StockCharts.com

FOREIGN ETFS TESTING 2010 LOWS ... What started off as a potentially bearish week may be turning into something more positive. A large part of the reason for that is the ability of so many global markets to find support at their mid-2010 lows. Given the steepness of the recent declines...   READ MORE 

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RISING FLAG BREAKDOWN REMAINS FOR SPY -- A POSSIBLE FALLING WEDGE AND A DEFINITIVE DOWNTREND -- NASDAQ RECOVERS AFTER BREAK BELOW AUGUST LOWS -- DELL, INTEL AND MICROSOFT LIFT NASDAQ -- NETWORKING ETF HOLDS AUGUST LOW WITH BULLISH ENGULFING

by John Murphy,

Chief Technical Analyst, StockCharts.com

RISING FLAG BREAKDOWN REMAINS FOR SPY... Link for todays video. Stocks staged one heck of a come back in the final hour of trading on Tuesday. Actually, the rally was even shorter than that as the surge started around 3:10PM and carried on to the 4PM close. Despite this...   READ MORE 

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LATE BOUNCE PREVENTS BREAKDOWNS NEAR 2010 LOWS -- SMALL CAPS AND TRANSPORTS LEAD AFTERNOON RALLY ON STRONG VOLUME -- UPSIDE REVERSAL DAY KEEPS QQQ OVER AUGUST LOW -- FIVE-WAVE DECLINES OFTEN LEAD TO RALLY ATTEMPTS

by John Murphy,

Chief Technical Analyst, StockCharts.com

UPSIDE REVERSAL ON RISING VOLUME... This morning's message showed a number of foreign and U.S. stock indexes testing important support at their mid-2010 lows. Some foreign ETFS (like the EEM and EWG) were actually trading below those levels. By late afternoon, however, upside reversals prevented those breakdowns...   READ MORE 

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SMALL-CAPS LEAD STOCKS LOWER AGAIN -- DOWNSIDE TARGET FOR SPY IS AROUND 100 -- WEAKNESS IN RETAILERS PUSHES XLY BELOW SEPTEMBER LOWS -- JUNK BONDS PLUNGE AS TREASURIES SURGE -- DOLLAR EXTENDS SURGE AS EURO PLUNGES

by John Murphy,

Chief Technical Analyst, StockCharts.com

SMALL-CAPS LEAD STOCKS LOWER AGAIN... Link for todays video. Stocks moved broadly lower on Monday with small-caps leading the way. All major index ETFs were down 2% or more. Eight of the nine sector SPDRs were down 2% or more. Only the Consumer Staples SPDR (XLP) was down less. Chart...   READ MORE 

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STOCKS SHOW LOTS OF MOVEMENT AND NO REAL CHANGE -- DECLINE IN ADX REFLECTS LACK OF TREND IN SPY -- XLK AND XLY FAIL AT KEY RETRACEMENTS -- RETAILERS HOLD THE KEY TO XLY -- NYSE AD VOLUME LINE BREAKS AUGUST LOW

by John Murphy,

Chief Technical Analyst, StockCharts.com

STOCKS SHOW LOTS OF MOVEMENT AND NO REAL CHANGE... Link for todays video. It is clear that the short-term trend is being influenced by news, hope and fear, all of which are four letter words. Chart 1 shows the S&P 500 ETF (SPY) since August 8th. The Zigzag...   READ MORE 

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OVERSOLD GERMAN STOCKS ARE TRYING TO STABILIZE -- GERMAN ISHARES ARE ALSO TESTING SUPPORT AT THEIR 2010 LOWS -- FOREIGN ETFS INCORPORATE DOLLAR TRENDS AND, IN MY VIEW, ARE BETTER TO CHART -- NASDAQ COMPOSITE STALLS AT 2600 RESISTANCE

by John Murphy,

Chief Technical Analyst, StockCharts.com

GERMAN DAX STABILIZES NEAR LONG-TERM SUPPORT ... A couple of Thursdays ago (September 15), I included in my market message a story about the German DAX Index trying to bounce from oversold territory after having reached a potential support level. The weekly bars in Chart 1 show that's still...   READ MORE 

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SMALL AND MID-CAPS LEAD STOCKS LOWER -- OIL ETF PLUNGES AS BASE METALS ETF HITS NEW LOW -- USING HEIKIN-ASHI CANDLESTICKS TO REDUCE VOLATILITY -- SPY FORMS TRIANGLE ON WEEKLY HEIKIN-ASHI CHART -- WHEN DOES A RISING FLAG BECOME SOMETHING MORE

by John Murphy,

Chief Technical Analyst, StockCharts.com

SMALL AND MID-CAPS LEAD STOCKS LOWER... Link for todays video. Stocks moved lower on Wednesday with small-caps leading the way. Before looking at the charts, just a note on the current Euro-Greek hysteria. It all boils down to the economy. If the US economy were strong and growing, the European...   READ MORE 

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GOLD ENTERS ITS FIFTH CORRECTION SINCE 2006 -- GLD NEARS MAJOR SUPPORT ZONE WITH FREEFALL -- SILVER FOLLOWS GOLD WITH BREAK BELOW MAY-JUNE LOWS -- DOLLAR EXTENDS AFTER DOUBLE BOTTOM BREAKOUT -- OIL LEADS THE STOCK MARKET LOWER

by John Murphy,

Chief Technical Analyst, StockCharts.com

GOLD IS IN ITS FIFTH CORRECTION SINCE 2006... Link for todays video. Despite a sharp decline the last two weeks, the Gold SPDR (GLD) remains in a long-term uptrend. Chart 1 shows daily closing prices for Spot Gold ($GOLD) over the last six years. The Zigzag indicator is overlaid and...   READ MORE 

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ELLIOTT WAVE COUNTS SHOW FIFTH WAVE STARTING -- PRICE CHANNEL PROJECTION FOR SPX -- MEASURING DOWNSIDE TARGETS FOR BEAR FLAGS -- TRANSPORT AVERAGE BREAKS AUGUST LOWS -- FEDEX AND UPS BREAK SUPPORTS AND SHOW RELATIVE WEAKNESS

by John Murphy,

Chief Technical Analyst, StockCharts.com

ELLIOTT WAVE COUNTS SHOW FIFTH WAVE STARTING... Link for todays video. The Elliott Wave picture shows the S&P 500 in Wave-5 of a five-wave decline (red numbers). Chart 1 shows the S&P 500 peaking in the spring as it hit the fifth (green 5) of the...   READ MORE 

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FOREIGN STOCKS ARE ALREADY IN BEAR MARKET TERRITORY WITH THE US HEADING IN THE SAME DIRECTION -- SURGING DOLLAR PUSHES COMMODITIES SHARPLY LOWER -- CHINESE STOCK MARKET HAS ALREADY LOST 30% AND WARNED OF GLOBAL WEAKNESS

by John Murphy,

Chief Technical Analyst, StockCharts.com

GLOBAL BEAR PULLS US MARKET LOWER... One of the basic elements of intermarket analysis is the close linkage among global stock markets. In other words, they rise and fall together. Right now, they're falling. A bad sign for the U.S. market is that foreign markets are falling...   READ MORE 

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YIELDS PLUNGE AND TREASURIES SOAR ON THE FED TWIST -- SMALL-CAPS SHOW RELATIVE WEAKNESS -- STOCKS SELL OFF SHARPLY AFTER FED -- IWM BREAKS NECKLINE SUPPORT ON INTRADAY CHART -- FINANCE, MATERIALS AND ENERGY SPDRS BREAK TRIANGLES

by John Murphy,

Chief Technical Analyst, StockCharts.com

YIELDS PLUNGE AND TREASURIES SOAR ON THE FED TWIST ... Link for todays video. The Fed made Operation Twist official today. As the name implies, the goal of this program is to twist the yield curve by buying 6-30 Year Treasuries and selling Treasuries with maturities of three years or less....   READ MORE 

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STOCK INDEXES STALL AT RESISTANCE BARRIERS -- SECTOR ROTATION REFLECTS PESSIMISM -- NEWMONT JUMPS TO RECORD ON RISING GOLD WHILE FCX PLUNGES ALONG WITH COPPER -- CELGENE AND BRISTOL MYERS SQUIBB LEAD HEALTHCARE RALLY -- VIX BOUNCES OFF CHART SUPPORT

by John Murphy,

Chief Technical Analyst, StockCharts.com

S&P 500 STALLS AT 50-DAY LINE ... Today's modest rally stalled at some important resistance barriers. Chart 1 shows the S&P 500 backing off from its 50-day moving average and its late August high. Chart 2 shows the Nasdaq Composite closing just below chart resistance...   READ MORE 

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SPY FORMS BEARISH CONTINUATION PATTERN ON WEEKLY CHART -- SPY GAPS DOWN WITHIN FLAG -- FINANCE SECTOR LEADS THE MARKET LOWER AGAIN -- OIL LEADS COMMODITIES LOWER -- INDUSTRIALS METALS ETF BREAKS AUGUST LOW -- GOLD AND SILVER SUCCUMB TO SELLING PRESSURE

by John Murphy,

Chief Technical Analyst, StockCharts.com

SPY FORMS BEARISH CONTINUATION PATTERN ON WEEKLY CHART... Link for todays video. There can be different trends in different timeframes. A three year weekly chart can show an emerging downtrend, but a three month daily chart can show an uptrend. Moreover, there can, and are, counter-trend rallies within bear markets....   READ MORE 

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CONSUMER DISCRETIONARY SPDR RUNS INTO RESISTANCE -- NASDAQ AD LINE HITS NEW LOW AS NYSE AD LINE BOUNCES -- BIG TECHS LIFT NASDAQ AD VOLUME LINE -- BANKS WEIGH ON NYSE AD VOLUME LINE -- CUMULATIVE NET NEW HIGHS LINES REMAIN WEAK

by John Murphy,

Chief Technical Analyst, StockCharts.com

CONSUMER DISCRETIONARY SPDR RUNS INTO RESISTANCE... The Consumer Discretionary SPDR (XLY) is a bit of a conundrum right now. Chart 1 shows the ETF moving into bear mode with a break below the June lows in August. After this decline, the ETF formed a rising flag over the last 5-6...   READ MORE