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VIX IS TESTING BOTTOM END OF SHORT-TERM TRADING RANGE --RISING VOLATILITY IS GOOD FOR DEFENSIVE STOCKS -- NASDAQ RETESTS BROKEN SUPPORT NEAR 2600 -- GERMAN DAX IS BOUNCING FROM OVERSOLD CONDITION BUT REMAINS IN BEAR MARKET

by John Murphy,

Chief Technical Analyst, StockCharts.com

VIX STALLS AT PREVIOUS RESISTANCE LEVEL ... Two Thursdays ago (September 1) I wrote about the CBOE Volatility (VIX) having reached previous resistance formed during the spring of 2010 near 48. Chart 1 shows that the VIX has backed off from that overhead barrier which has helped stabilize the stock market...   READ MORE 

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LARGE-CAP TECH STOCKS LEAD MARKET HIGHER -- QQQ ESTABLISHES KEY SUPPORT WITH 3-DAY SURGE -- APPLE, MICROSOFT AND ORACLE SURGE -- RETAILERS SHRUG OFF DISAPPOINTING RETAIL SALES REPORT -- OIL ETF HITS RESISTANCE AS BASE METALS ETF TESTS SUPPORT

by John Murphy,

Chief Technical Analyst, StockCharts.com

LARGE-CAP TECH STOCKS LEAD MARKET HIGHER... Link for todays video. The bulls refuse to buckle as stocks moved higher for the third day running. Overall, large-cap tech stocks have been leading the market since the August 19th low. Chips were particularly strong on Monday with the Semiconductor HOLDRS (SMH) surging...   READ MORE 

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NASDAQ UNDERPERFORMS NASDAQ 100 IN RISK-OFF ENVIRONMENT -- SEMICONDUCTOR HOLDRS FORMS DESCENDING TRIANGLE -- INTEL FAILS AT RESISTANCE AS NVDA FORMS FALLING FLAG -- SILVER ETF TESTS TRIANGLE SUPPORT

by John Murphy,

Chief Technical Analyst, StockCharts.com

NASDAQ UNDERPERFORMS NASDAQ 100 IN RISK-OFF ENVIRONMENT... Link for todays video. There are a number of ways to measure the appetite for risk in the stock market. In particular, chartists can use ratio charts to compare the performance of two different indices or ETFs. Chartists first need to choose the...   READ MORE 

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RECENT MARKET TRENDS FOLLOW "NEW NORMAL" INTERMARKET SCRIPT VERY CLOSELY -- BOND YIELDS AND CRUDE OIL PRICES HAVE LED STOCKS LOWER SINCE THE SPRING -- RISING DOLLAR PUSHED STOCKS SHARPLY LOWER THIS WEEK AS EURO PLUNGES

by John Murphy,

Chief Technical Analyst, StockCharts.com

NEW NORMAL IN INTERMARKET RELATIONSHIPS ... Back on April 5, I wrote a Market Message explaining the "new normal" in intermarket relationships. I did that to highlight two changes that had taken place over the past decade owing primarily to deflationary pressures not seen since the Great Depression of...   READ MORE 

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SPY STARTS WAVE 3 OF 5 DOWN -- GOLD HITS UPPER TRENDLINE OF RISING CHANNEL -- OIL AND STOCKS MAINTAIN POSITIVE CORRELATION -- XLE AND OIH CONSOLIDATE AFTER BREAKDOWNS -- DOLLAR CHALLENGES MAY HIGHS AS EURO CRUMBLES

by John Murphy,

Chief Technical Analyst, StockCharts.com

SPY STARTS WAVE 3 OF 5 DOWN... Link for todays video. The zigzag higher since early August looks like an ABC correction that ended Wave-4 in the S&P 500 ETF (SPY). Chart 1 shows SPY with the 5% Zigzag indicator. This is not an indicator per se. It...   READ MORE 

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MARKET VECTORS GOLD MINING INDEX HITS NEW HIGH -- RECENT GOLD BREAKOUTS INCLUDE NEWMONT MINING AND ELDORADO GOLD -- BARRICK MAY BE NEXT -- CORRELATION COEFFICIENT SHOWED GOLD STOCKS REL-LINKING WITH GOLD DURING JULY

by John Murphy,

Chief Technical Analyst, StockCharts.com

GOLD MINERS INDEX HITS NEW HIGH... My Market Message last Friday morning showed the Market Vectors Gold Miners ETF (GDX) on the verge of a bullish breakout to a new record high. Chart 1 shows that bullish breakout taking place this week (see circle). And this has happened while gold...   READ MORE 

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IWM AND SPY FORM RISING FLAG PATTERNS -- FINANCE SECTOR AND REGIONAL BANKS LEAD MARKET REBOUND -- UTILITIES SECTOR REMAINS THE STRONGEST SECTOR OVERALL -- PERCENT OF STOCKS ABOVE 200-DAY HITS BEAR MARKET TERRITORY

by John Murphy,

Chief Technical Analyst, StockCharts.com

IWM AND SPY FORM RISING FLAG PATTERNS ... Link for todays video. Price action remains quite choppy for stocks over the last five weeks. In particular, the Russell 2000 ETF (IWM) has had five swings of at least 5% in the last five weeks. These swings, which were based on closing...   READ MORE 

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US DOLLAR SURGES AGAINST ALL CURRENCIES -- THAT'S USUALLY BAD FOR STOCKS AND COMMODITIES WHICH TREND IN THE OPPOSITE DIRECTION OF THE DOLLAR -- S&P 500 BOUNCES OFF SHORT-TERM SUPPORT LINE BUT REMAINS IN DOWNTREND

by John Murphy,

Chief Technical Analyst, StockCharts.com

US DOLLAR INDEXES SURGES TO SIX-WEEK HIGH ... Besides today's selling in stocks, the most notable feature of the day's trading was the 1.74% surge in the U.S. Dollar Index. Chart 1 shows the Bullish Dollar ETF (UUP) surging to the highest level since mid-July...   READ MORE 

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NEW LOW IN GERMAN DAX AND 10-YEAR TREASURY YIELD POINT TO BAD MARKET DAY AHEAD -- US FUTURES EXPECTED TO OPEN SHARPLY LOWER -- NASDAQ FAILS TEST OF MAJOR RESISTANCE AT 2600 AND FORMS BEARISH "ISLAND REVERSAL" PATTERN -- SEPTEMBER IS USUALLY A WEAK MONTH

by John Murphy,

Chief Technical Analyst, StockCharts.com

DAX AND BOND YIELDS HIT NEW LOWS... European stocks fell sharply on Monday (while U.S. markets were closed) and are weak again today. Chart 1 shows the German DAX Composite, which is largest market in Europe, falling to another 52-week low. Given its strong correlation to the U.S....   READ MORE 

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DIA FORMS ISLAND REVERSAL WITHIN BEAR WEDGE -- IWM RETRACES LESS THAN DIA ON OVERSOLD BOUNCE -- 2010 LOWS MARK NEXT BIG SUPPORT ZONE -- OIL HITS RESISTANCE WITHIN A DOWNTREND -- EURO TRUST FORGES OUTSIDE REVERSAL WEEK

by John Murphy,

Chief Technical Analyst, StockCharts.com

DIA FORMS ISLAND REVERSAL WITHIN BEARISH WEDGE... Link for todays video. Chart 1 shows that classic technical analysis is alive and well for the Dow Industrials SPDR (DIA). First, the ETF formed a Double Top and confirmed this pattern with a break below the intermittent low. A major bearish reversal...   READ MORE 

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WEAK PAYROLL NUMBERS PUSH GLOBAL STOCKS LOWER AND BONDS HIGHER -- IT NOW LOOKS LIKE SUMMER BOUNCE HAS ENDED -- GOLD MINERS INDEX COULD ACHIEVE BULLISH BREAKOUT ON RISING GOLD AND SILVER PRICES

by John Murphy,

Chief Technical Analyst, StockCharts.com

EUROPEAN STOCKS FALL ... This morning's weak employment report is having a negative impact on global stock markets. European stocks are down 3%. Chart 1 shows the German DAX to be the weakest of the three after having achieved a feeble rally over the last month. Chart 2 shows...   READ MORE 

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TWO FUNDS OFFER WAYS TO PARTICIPATE IN RISING AGRICULTURAL COMMODITIES -- IPATH GRAIN ETN OFFERS EXPOSURE TO CORN, SOYBEANS, AND WHEAT -- COFFEE AND SUGAR ETNS OFFER ENTRY INTO THOSE TWO RISING MARKETS

by John Murphy,

Chief Technical Analyst, StockCharts.com

AGRICUTURAL MARKETS SHOW COMMODITY STRENGTH ... With all of the recent focus on the trend of commodities like gold and oil, it shouldn't go unnoticed that agricultural commodities turned up sharply during August. Perhaps the best known vehicle for trading that commodity sector is the Power Shares DB Agricultural...   READ MORE 

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SPX BREAKS BELOW 12-MONTH MOVING AVERAGE -- AUGUST MARKS 4TH CONSECUTIVE MONTHLY DECLINE -- EXCESSIVELY LOW SHORT-TERM YIELDS REFLECT UNCERTAINTY -- FALLING 10-YEAR YIELD IS BEARISH FOR STOCKS -- STEEPENING YIELD CURVE POINTS TO QE3

by John Murphy,

Chief Technical Analyst, StockCharts.com

SPX BREAKS BELOW 12-MONTH MOVING AVERAGE... Link for todays video. Long-term signals require long-term charts. Chart 1 shows monthly bars for the S&P 500 and the 12-period simple moving average. Over the last 17 years, there were five good crosses (signals) and at least two whipsaws (blue ovals)...   READ MORE 

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BANKS AND HOMEBUILDERS ARE CLOSELY LINKED -- AND BOTH ARE WEIGHING ON THE REST OF THE MARKET -- HOMEBUILDERS BOUNCE BUT REMAIN IN MAJOR DOWNTRENDS -- NEWMONT MINING AND ROYAL GOLD ARE DAY'S GOLD LEADERS

by John Murphy,

Chief Technical Analyst, StockCharts.com

BANKS AND HOUSING ARE LINKED ... Since banks and homebuilders have been the weakest parts of the market, I decided to take a closer look at how closely they're linked. The answer is "very". Chart 1 compares the PHLX Housing Index (bars) to the PHLX Banking Index...   READ MORE 

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SMALL AND MID-CAPS LEAD STOCKS HIGHER -- REGIONAL BANK SPDR SURGES HIGHER -- RETAIL SPDR BREAKS MID AUGUST HIGH -- HOMEBUILDERS SPDR ADVANCES 5-DAYS STRAIGHT -- PERCENT OF SPX STOCKS ABOVE 50-DAY BREAKS 10%

by John Murphy,

Chief Technical Analyst, StockCharts.com

SMALL AND MID-CAPS LEAD STOCKS HIGHER... Link for todays video. Stocks extended last weeks rally with strong gains on Monday. The appetite for risk reappeared as small-caps and mid-caps led the way higher. Chart 1 shows the Russell 2000 ETF (IWM) advancing over 4% with a surge above 72 today....   READ MORE 

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SPY FORMS TRIANGLE WITHIN DOWNTREND -- AUGUST 2010 LOWS MARK NEXT SUPPORT -- LARGE TECHS SPRING TO LIFE WITH QQQ LEADING -- NETWORKING AND SEMIS LEAD TECHS HIGHER -- PROVING A BEARISH REVERSAL OTHERWISE

by John Murphy,

Chief Technical Analyst, StockCharts.com

SPY FORMS TRIANGLE WITHIN DOWNTREND... Link for todays video. After sharp declines in late July and early August, stocks have been moving sideways the last 3-4 weeks. This is pretty normal because stocks were quite oversold on August 8th, which is when the S&P 500 ETF (SPY) first...   READ MORE 

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GOLD STOCKS FAIL TO REACH NEW HIGH -- THIS IS THE FOURTH TIME THIS HAS HAPPENED IN THE LAST DECADE AND USUALLY LEADS TO A GOLD PULLBACK -- GOLD SHARES UNDERPERFORM BULLION BUT OUTPERFORM STOCKS

by John Murphy,

Chief Technical Analyst, StockCharts.com

GOLD MINERS FAIL TEST OF HIGHS... On Tuesday I showed the Market Vectors Gold Miners ETF (GDX) hitting a new four-month high which set up a test of its late 2010 and spring 2011 peaks. Chart 1 shows that test of prior resistance at 64 failed this week as miners...   READ MORE 

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SMALL-CAPS LEAD LATE SURGE, BUT BIG TECHS LAG -- STOCKS AND TREASURIES MAINTAIN NEGATIVE CORRELATION -- 7-10 YEAR BOND ETF CORRECTS AFTER FIFTH OF THE FIFTH -- CHANNEL TRENDLINE MARKS LONG-TERM SUPPORT FOR GOLD

by John Murphy,

Chief Technical Analyst, StockCharts.com

SMALL-CAPS LEAD LATE SURGE, BUT TECHS SHOW RELATIVE WEAKNESS... Link for todays video. Small-caps led a ninth inning surge as the stock market rallied for a strong close. Chart 1 shows the Russell 2000 ETF (IWM) advancing around 1.5% on the day. The two day advance is certainly impressive...   READ MORE 

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MARKET VECTORS GOLD MINERS ETF CLEARS SUMMER HIGH -- A LOT OF GOLD MINERS HIT 52-WEEK HIGHS -- TWO RECENT BREAKOUTS INCLUDE BARRICK AND NEWMONT -- SILVER BREAKOUT BOOSTS SILVER SHARES -- SILVER WHEATON IS GROUP LEADER

by John Murphy,

Chief Technical Analyst, StockCharts.com

GDX HITS NEARS 2011 HIGH... Chart 1 shows the Market Vectors Gold Miners Index (GDX) surging 4% yesterday through its July high on rising volume. That puts the GDX in position to challenge its previous highs near 64 formed late last year and this April. The rising relative strength line...   READ MORE 

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BOND MARKET PRICES IN AN ECONOMIC DIP -- YIELD CURVE FLATTENS, BUT REMAINS STEEP -- TLT LEADS HIGHER WITH MOVE TO 2008 HIGHS -- 30-YEAR TREASURY YIELD HAS FURTHER ROOM TO FALL -- GOLD GOES PARABOLIC WITH STEEP MOVE

by John Murphy,

Chief Technical Analyst, StockCharts.com

BOND MARKET PRICES IN AN ECONOMIC DIP... Link for todays video. Double dip seems to be the economic topic djour. A CNN poll on August 10th noted that 25% of economists expect a double dip. This number was up from 15% just three months ago. Double dip refers to another...   READ MORE 

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DOWNSIDE MOVING AVERAGE CROSSINGS INCREASE MARKET RISK -- 10 - AND 40- WEEK EMA DOWNTURN HAS GOOD TRACK RECORD OF IDENTIFYING BEAR MARKETS -- SO DOES 13-34 WEEKLY COMBINATION WHICH ALSO TURNED DOWN

by John Murphy,

Chief Technical Analyst, StockCharts.com

10 WEEK AVERAGE FALLS BELOW 40 WEEK ... Another sign that the stock market has probably entered a bear market is the fact that the 10-week moving average (or 50-day) has fallen below the 40-week (or 200 days). [For long term signals like these, I prefer weekly to daily signals]. Chart...   READ MORE 

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COMMON CHARACTERISTICS OF MARKET TOPS -- RSI MOVES INTO BEAR MODE FOR THE S&P 500 -- CONSUMER DISCRETIONARY MOVES FROM LEADER TO LAGGARD -- STEEL AND HOMEBUILDERS LEAD KEY INDUSTRY GROUPS LOWER -- EUROPEAN BANKS LEAD EUROPEAN INDICES LOWER

by John Murphy,

Chief Technical Analyst, StockCharts.com

COMMON CHARACTERISTICS OF PRIOR MARKET TOPS... Link for todays video. Now is a good time to review the prior market reversals for clues on what to expect with this reversal. History does not repeat itself, but it sure does rhyme (Mark Twain). The current bearish reversal in the S&...   READ MORE 

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GLOBAL STOCKS TUMBLE WHICH MEANS SHORT-TERM BOUNCE IS PROBABLY OVER -- GERMANY IS BIGGEST EUROPEAN LOSER -- GOLD HITS NEW HIGHS AS OTHER COMMODITIES TUMBLE -- FLIGHT TO TREASURIES PUSHES 10-YEAR YIELD TO ALL-TIME LOW

by John Murphy,

Chief Technical Analyst, StockCharts.com

GERMANY LEADS GLOBAL STOCKS LOWER ... A 5% drop in German stocks is contributing to heavy selling in Europe which has spread to the U.S. Chart 1 shows the German DAX falling 5.3% to make it Europe's biggest loser. Most other European stocks are down 4%. Chart...   READ MORE 

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SURGING EURO KEEPS RISK-ON TRADE AFLOAT -- AGRICULTURE ETF CORRECTS WITH FALLING WEDGE -- CORN INDEX BREAKS TRIANGLE RESISTANCE -- ELLIOTT WAVE COUNTS SHOWS S&P 500 IN 5-WAVE DECLINE -- CURRENT BOUNCE LOOKS LIKE CORRECTIVE WAVE 4

by John Murphy,

Chief Technical Analyst, StockCharts.com

SURGING EURO KEEPS RISK-ON TRADE AFLOAT... Link for todays video. The Euro Currency Trust (FXE) broke medium-term and short-term patterns to signal a continuation higher. Chart 1 shows the Euro Currency Trust (FXE) within an uptrend overall. First, notice that the ETF formed a higher low in January and moved...   READ MORE 

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NYSE AND NASDAQ NET ADVANCES SURGE TO HIGHEST LEVELS OF THE YEAR -- SETTING RESISTANCE FOR THE DOW, NASDAQ AND NY COMPOSITE

by John Murphy,

Chief Technical Analyst, StockCharts.com

NYSE AND NASDAQ NET ADVANCES SURGE TO HIGHEST LEVELS OF THE YEAR... Link for todays video. The July-August decline started with a negative breadth surge on July 27th. Charts in the Market Message for that day showed Net Advances for both the NYSE and the Nasdaq plunging to their lowest...   READ MORE 

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BULLS GET A DRAW FOR THE WEEK, BUT SUPPORT BREAKS REMAIN -- BROKEN SUPPORT LEVELS MARK FIRST RESISTANCE TO WATCH -- FINANCE AND BANKING ETFS HIT NEW 52-WEEK LOWS -- AD VOLUME LINES AFFIRM RECENT SELLING PRESSURE

by John Murphy,

Chief Technical Analyst, StockCharts.com

BULLS REGROUP, BUT SUPPORT BREAKS REMAIN... With a rebound over the last two days, the S&P 500 ETF (SPY) held the support level that was shown in Mondays market message. At the time, SPY was also severely oversold. This weeks bounce alleviated oversold conditions, but it was not...   READ MORE 

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STOCKS REACH MOST OVERSOLD LEVEL IN TWO YEARS -- THAT DOESN'T NECESSARILY SIGNAL A BOTTOM -- BUT IT MAY LEAD TO A SHORT-TERM RELIEF RALLY -- USE FIBONACCI LINES TO FIND OVERHEAD RESISTANCE

by John Murphy,

Chief Technical Analyst, StockCharts.com

S&P OVERSHOOTS DOWNSIDE TARGET... Last Thursday's message offered a downside target in the S&P 500 to 1150. That level was based on a measurement from the "head and shoulders" top that was completed last week. The 1150 was also a 62% retracement...   READ MORE 

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SECTOR CARPET SHOWS ONE GAINER IN 11 DAYS -- PANIC SELLING GRIPS WALL STREET AND THE CCI -- MARKING POTENTIAL SUPPORTS FOR SPY -- BOND ETF BREAKS 2010 HIGH -- KEEPING PERSPECTIVE WITH LOUIS RUKEYSER

by John Murphy,

Chief Technical Analyst, StockCharts.com

SECTOR CARPET SHOWS ONE GAINER IN 11 DAYS... Link for todays video. Investors hit the panic button as stocks moved sharply lower on Monday. Today might be considered a black Monday, even though stocks finished deeply in the red. There are at least two other black Mondays of note. First,...   READ MORE 

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BROKEN SUPPORTS TURN FIRST RESISTANCE -- NY COMPOSITE HITS FIBONACCI RETRACEMENT -- NON-CONFIRMATION PRECEDED DOW THEORY SELL SIGNAL -- S&P 500 CORRECTS AFTER THE 5TH OF THE 5TH -- BEARISH SCENARIO SHOWS S&P 500 ENTERING 3 OF III

by John Murphy,

Chief Technical Analyst, StockCharts.com

BROKEN SUPPORTS TURN FIRST RESISTANCE... Link for todays video. Fridays employment report provided a little good news on the labor market, but stocks still struggled with sharp losses in early trading on Friday. The major index ETFs are quite oversold, but showing no signs of support or firmness that could...   READ MORE 

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GLOBAL STOCKS AND COMMODITIES PLUNGE -- EVEN GOLD SUCCUMBS TO PROFIT-TAKING -- YEN INTERVENTION BOOSTS DOLLAR -- BONDS ARE THE ONLY WINNERS -- EXCEPT FOR JUNK BONDS -- NASDAQ IS LAST U.S. INDEX TO BREAK MAJOR SUPPORT

by John Murphy,

Chief Technical Analyst, StockCharts.com

JUNK BONDS TUMBLE WITH STOCKS ... With global stocks and commodities in a rout, most U.S. bonds are surging again. Chart 1 shows the T-Bond 20+Year iShares (TLT) continuing its recent surge (as bond yields tumble to the lowest level in a year). The only exception is high yield...   READ MORE 

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MORE SELLING IN EUROPEAN STOCKS SHOULD KEEP DOWNWARD PRESSURE ON U.S. STOCKS

by John Murphy,

Chief Technical Analyst, StockCharts.com

EUROPEAN STOCKS HIT NEW LOWS... More selling in European stocks this morning casts doubt on the staying power of yesterday afternoon's rebound in U.S. stocks. Chart 1, for example, shows the German DAX Composite Index trading lower again today and bearing down on its March low. French...   READ MORE 

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2000 TOP EVOLVED OVER 9-MONTH PERIOD RSI BREAK DOWN CONFIRMED 2007 TOP -- RSI FORMS BEARISH FAILURE SWING ON SPX WEEKLY CHART -- DOLLAR FAILS TO ATTRACT MONEY AS SAFE-HAVEN -- JUNK BONDS ARE VULNERABLE WITH WEAK STOCK MARKET

by John Murphy,

Chief Technical Analyst, StockCharts.com

2000 TOP EVOLVED OVER 9-MONTH PERIOD ... Link for todays video. While no two tops are the same, we can learn from prior market tops by dissecting the price action and pinpointing the reversal points. With this in mind, I am going to dissect the 2000 and 2007 tops, both of...   READ MORE 

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GLOBAL STOCKS FALL SHARPLY WITH A LOT SUPPORT LEVELS BEING BROKEN -- S&P 500 BREAKDOWN COMPLETES HEAD AND SHOULDERS TOPPING PATTERN -- MONEY POURS INTO SAFE HAVENS LIKE THE SWISS FRANC, PRECIOUS METALS, AND TREASURIES

by John Murphy,

Chief Technical Analyst, StockCharts.com

SAVE HAVENS SOAR... With global stocks under heavy selling pressure, money poured into safe haven markets. The three biggest winners on the day were precious metals (Chart 1), U.S. Treasuries (Chart 2), and the Swiss Franc (Chart 3). Unfortunately, most of the money moving into those three markets came...   READ MORE 

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FRENCH AND GERMAN STOCKS BREAK IMPORTANT SUPPORT LEVELS -- S&P 500 MAY BE IN LATTER STAGES OF HEAD AND SHOULDERS TOP -- FALLING BOND YIELDS RAISE RISK LEVEL FOR STOCKS

by John Murphy,

Chief Technical Analyst, StockCharts.com

EUROPE'S TWO BIGGEST MARKETS BREAK DOWN... Two weeks ago (July 11) I showed that two of Europe's largest markets (Germany and France) were succumbing to selling in weaker countries like Italy and Spain. With France being the weaker of the two, I warned that a drop...   READ MORE 

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DOW INDUSTRIALS SPDR TESTS TWO MAJOR TRENDLINES -- HEALTHCARE SECTOR HAMMERED AFTER DEBT DEAL -- AETNA, CIGNA AND UNITEDHEALTH LEAD LOWER -- RETAIL ETF EDGES LOWER WITH FALLING WEDGE

by John Murphy,

Chief Technical Analyst, StockCharts.com

DOW INDUSTRIALS SPDR TESTS TWO MAJOR TRENDLINES... Link for todays video. The debt-ceiling debacle turned into a deal over the weekend, but stocks continued to focus on the economy Monday  as did bonds. In keeping with last weeks wave of bad economic news, the ISM Manufacturing Index dropped to its...   READ MORE 

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RUSSELL 2000 ETF HEADS TOWARDS KEY SUPPORT TESTS -- 7-10 YEAR BOND ETF SURGES TO NEW 52-WEEK HIGH -- AD VOLUME LINES FORM LOWER HIGHS WITH JULY PLUNGE -- PERCENTAGE OF SPX STOCKS ABOVE 150-DAY SMA BREAKS 50%

by John Murphy,

Chief Technical Analyst, StockCharts.com

RUSSELL 2000 ETF HEADS TOWARDS KEY SUPPORT TESTS... Link for todays video. When it rains it pours. While most of this weeks media focus has been on the debt-ceiling debacle, Wall Street appears more focused on recent economic reports that show slowing growth. On Wednesday, it was reported that Durable...   READ MORE 

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STOCKS DECLINE SHARPLY WITH BEARISH BREADTH SURGE -- UTILITIES HOLD UP THE BEST -- MICRO-CAPS AND SMALL-CAPS LEAD LOWER -- NY COMPOSITE TRACES OUT HEAD-AND-SHOULDERS PATTERN -- NASDAQ BACKS OFF RESISTANCE AGAIN XLI AND SMH TEST 2011 LOWS

by John Murphy,

Chief Technical Analyst, StockCharts.com

STOCKS DECLINE SHARPLY WITH BEARISH BREADTH SURGE... Link for todays video. Negative news on the economy and the debt-ceiling debacle knocked the wind out of stocks on Wednesday. First, Durable Goods orders unexpectedly declined in June. Second, the Feds beige book showed slowing in eight of twelve regions. Third, the...   READ MORE 

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FALLING DOLLAR BOOSTS COMMODITY ASSETS -- FREEPORT MCMORAN FOLLOWS COPPER HIGHER -- ANADARKO PETROLEUM GIVES ENERGY SECTOR A BOOST -- MICROSOFT SHOWS NEW MARKET LEADERSHIP

by John Murphy,

Chief Technical Analyst, StockCharts.com

DOLLAR BREAKS TRIANGLE SUPPORT LINE... Arthur Hill and myself have described the sideways consolidation pattern in the U.S. Dollar Index ETF (UUP) as a bearish triangle which is identified by two converging trendlines. The UUP has clearly broken the lower support line this week which suggests the start of...   READ MORE 

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QQQ PROVIDES THE LONE BREAKOUT -- SPY FORMS LARGE TRIANGLE -- INDUSTRIALS AND FINANCE LAGGING THE MARKET -- US DOLLAR FUND BREAKS TRIANGLE SUPPORT -- EURO TRUST CHALLENGES WEDGE RESISTANCE

by John Murphy,

Chief Technical Analyst, StockCharts.com

QQQ PROVIDES THE LONE BREAKOUT... Link for todays video. It remains a story of two stock markets, or more. The Nasdaq 100 ($NDX) broke above its 2011 highs with a surge above 59.5 on Friday. The ETF is struggling today, but largely holding above these highs. New highs are...   READ MORE 

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FINANCE SPDR BATTLES CENTERLINE OF BIG CONSOLIDATION -- BROKER-DEALER ISHARES FORMS WEEKLY BULLISH ENGULFING -- AD VOLUME LINES BOUNCE OFF 200-DAY SMAS -- NASDAQ 100 BREADTH IS LAGGING THE INDEX -- BOND ETF HITS KEY RETRACEMENT AS MOMENTUM WANES

by John Murphy,

Chief Technical Analyst, StockCharts.com

FINANCE SPDR BATTLES CENTERLINE OF BIG CONSOLIDATION... Link for todays video. The finance sector has weighed on the broader market most of the year. While the ETF shows signs of firming this week, it remains short of the breakout needed to reverse the current downtrend. Chart 1 shows the Finance...   READ MORE