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STOCKCHARTS ADDS NEW CORRELATION COEFFICIENT INDICATOR WHICH IS ESPECIALLY HELPFUL IN INTERMARKET WORK -- IT CONFIRMS POSITIVE CORRELATION BETWEEN STOCKS AND COMMODITIES AND NEGATIVE CORRELATION TO BONDS AND THE DOLLAR

by John Murphy,

Chief Technical Analyst, StockCharts.com

IT QUANTIFIES INTERMARKET RELATIONSHIPS... The Correlation Coefficient which has just been added to the Stockcharts.com indicator list measures the strength of a relationship between two markets. That relationship can be positive or negative. For example, a coefficient of +1.0 means that two markets are perfectly correlated which means...   READ MORE 

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APPLE BREAKS OUT AS QQQ CHALLENGES 2011 HIGHS -- SEMI ETF TESTS MAJOR SUPPORT LEVEL -- AMAT AND TXN WEIGH ON SEMIS -- NETWORKING ETF SHOWS RELATIVE WEAKNESS -- S&P EQUAL WEIGHT INDEX UNDERPERFORMS -- INTERNET ETF POWERS NASDAQ

by John Murphy,

Chief Technical Analyst, StockCharts.com

APPLE BREAKS OUT AS QQQ CHALLENGES 2011 HIGHS... Link for todays video. Led by Apple (APPL), the Nasdaq 100 ETF (QQQ) is once again challenging its 2011 highs. Chart 1 shows AAPL surging through resistance with a massive surge the last four weeks. Even though the breakout is bullish, the...   READ MORE 

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QQQ AND IWM BACK OFF RESISTANCE -- FINANCIALS CONTINUE TO WEIGH ON STOCKS -- HOMEBUILDERS SPDR FORMS HEAD-AND-SHOULDERS PATTERN -- SWISS FRANC AND YEN ARE STRONGEST CURRENCIES -- DOLLAR REMAINS STUCK IN CONSOLIDATION PATTERN

by John Murphy,

Chief Technical Analyst, StockCharts.com

QQQ AND IWM BACK OFF RESISTANCE... Link for todays video. With a decline over the last seven days, the Russell 2000 ETF (IWM) and the Nasdaq 100 ETF (QQQ) backed off resistance from the 2011 highs. Taking a step back to look at the big picture, these ETF charts show...   READ MORE 

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FRIDAY'S LEADERS WERE ENERGY, MATERIALS, AND TECHNOLOGY -- GOOGLE, APPLE, AND MICROSOFT LEAD NASDAQ BOUNCE -- MSFT SHOWS NEW LEADERSHIP -- ADD FREEPORT MCMORAN COPPER AND GOLD TO METAL LEADERS -- S&P 500 REGAINS 50-DAY AVERAGE

by John Murphy,

Chief Technical Analyst, StockCharts.com

ENERGY AND MATERIAL STOCKS HAVE STRONG WEEK... The stock market staged a modest rally on Friday. It was enough, however, to either keep some indexes (like the Nasdaq) above its 50-day average, or to push some others (S&P 500) back above it. The three strongest sectors on Friday...   READ MORE 

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INVESTORS BUY DRUGS AND SELL CHIPS -- S&P 500 SLIPS BELOW 50-DAY AVERAGE TURNING SHORT-TERM MOMENTUM BACK DOWN

by John Murphy,

Chief Technical Analyst, StockCharts.com

PHARM HOLDERS ARE DAY'S TOP ETF ... On another day when stocks are coming under selling pressure, investors are favoring defensive stock groups like pharmaceuticals. Chart 1 shows Pharm Holders (PPH) trading up on the day (while most of the rest of the market is down). The rising PPH/...   READ MORE 

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SILVER JOINS GOLD IN PRECIOUS METALS RALLY -- MARKET VECTORS GOLD MINING INDEX (GDX) CLEARS RESISTANCE -- SILVER STOCKS LIKE SILVER WHEATON JUMP WITH METAL -- GOLD MINERS BPI TURNS POSITIVE

by John Murphy,

Chief Technical Analyst, StockCharts.com

GOLD MINERS BPI TURNS UP ... Last Wednesday's message wrote about a potential upturn in precious metals and stocks tied to them, and showed the Gold Miners Bullish Perent Index ($BPGDM) in oversold territory (below 30%) and on the verge of turning higher. [The BPGDM measures the percent of...   READ MORE 

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COMMODITIES MAKE IMPRESSIVE COMEBACK FROM YESTERDAY'S SELLING -- GOLD CLEARS OVERHEAD RESISTANCE -- GOLD SHARES BOUNCE AS WELL LED BY GOLDCORP, YAMANA, AND KINROSS GOLD

by John Murphy,

Chief Technical Analyst, StockCharts.com

ALL COMMODITY GROUPS REBOUND... While global stocks are trying to stabilize after yesterday's selloff, commodity markets are making a decent comeback. Chart 1 shows the DB Commodities Tracking Index Fund (DBC) bouncing off its (blue) 50-day moving average. Chart 2 shows the DB Energy ETF (DBE) doing the...   READ MORE 

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FRENCH AND GERMAN STOCKS SUCCUMB TO HEAVY SELLING IN SPAIN AND ITALY -- GERMAN DAX GAPS LOWER AND BREAKS 50-DAY LINE -- IT'S IMPORTANT THAT THE DAX STAY ABOVE ITS JUNE LOW -- S&P 500 RETESTS 50-DAY AVERAGE -- GOLD AND TREASURIES ATTRACT SAFE HAVEN BUYING

by John Murphy,

Chief Technical Analyst, StockCharts.com

SPAIN AND ITALY PULL REST OF EUROPE LOWER... European debt problems have spread to Spain and Italy which are pulling the rest of Europe (and global stocks) lower today. The four lines in Chart 1 the two of the day's weakest European stock markets (Italy and Spain) starting...   READ MORE 

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SPAIN AND ITALY LEAD EUROPEAN AND GLOBAL STOCKS LOWER -- EURO TUMBLE PUSHES US DOLLAR SHARPLY HIGHER -- MOST COMMODITIES DROP -- GOLD AND TREASURIES RALLY ON SAFE HAVEN STATUS -- S&P 500 NEARS TEST OF 50-DAY LINE

by John Murphy,

Chief Technical Analyst, StockCharts.com

ITALY AND SPAIN PULL EUROPE LOWER... Heavy selling in Europe is pulling down global stock markets around the world. Two of the biggest losers in Europe are Italy and Spain. Both markets are down 6% and 4% respectively. And both are suffering chart damage. Chart 1 shows Italy iShares (EWI)...   READ MORE 

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STOCKS SOAR AS DOLLAR WEAKENS -- COMMODITY ETF CLEARS 50-DAY LINE -- SO DOES ENERGY ETF AS ENERGY SHARES CLEAR RESISTANCE -- TRANSPORTS, RETAILERS, AND REITS HIT NEW HIGHS -- S&P 500 CLEARS RESISTANCE AND MAY TEST SPRING HIGH

by John Murphy,

Chief Technical Analyst, StockCharts.com

US DOLLAR CLOSES LOWER... After a higher open today, the U.S. Dollar Index (UUP) ended the day in the red as shown in Chart 1. The UUP continues to fluctuate in a bearish consolidation pattern. At the same time, the Euro did just the opposite. Chart 2 shows the...   READ MORE 

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UPSIDE BREAKOUT IN JAPANESE STOCKS ADDS TO BULLISH ENTHUSIASM FOR STOCKS AND COMMODITIES -- A WEAKER YEN AND STRONGER AUSSIE DOLLAR IS ALSO A GOOD SIGN FOR RISKIER ASSETS

by John Murphy,

Chief Technical Analyst, StockCharts.com

JAPAN ISHARES HIT FOUR-MONTH HIGH ... Global stocks and commodities are continuing the strong rally that started last week. One of the reasons being given for today's U.S. stock rally is better employment news and strong retail sales. The fact that foreign stocks were already rallying before release...   READ MORE 

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GOLD AND SILVER START TO BOUNCE ALONG WITH THEIR RELATED SHARES -- GLD CLEARS 50-DAY LINE -- THREE GOLD LEADERS ARE GOLDCORP, YAMANA, AND KINROSS GOLD -- GOLD MINERS BULLISH PERCENT INDEX IS OVERSOLD BUT HAS YET TO TURN UP

by John Murphy,

Chief Technical Analyst, StockCharts.com

GOLD ETF CLEARS 50-DAY LINE; SILVER TRYING TO BOTTOM... Precious metals have caught a bid over the last two days after lagging behind everything else over the last two months. The good news is that both gold and silver are finding chart support near previous lows, which is often the...   READ MORE 

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STOCK INDEXES CLOSE WELL ABOVE 50-DAY LINES CONFIRMING START OF SUMMER RALLY -- RAILS AND DISCRETIONARY STOCKS HIT NEW 2011 HIGHS -- BOND PRICES DROP AS YIELDS CLIMB -- JUNK BONDS, HOWEVER, FOLLOW STOCKS HIGHER

by John Murphy,

Chief Technical Analyst, StockCharts.com

FALLING DOLLAR BOOSTS COMMODITIES... It was a good week for commodities and an even better week for stocks. But it all started with the dollar. We explained earlier in the week that the Dollar Index (UUP) appeared to be in a bearish consolidation pattern within a major downtrend. That view...   READ MORE 

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GLOBAL STOCK INDEXES CLEAR 50-DAY MOVING AVERAGES -- COPPER TURNS UP AS FALLING DOLLAR BOOSTS BASIC MATERIAL STOCKS -- MOVING AVERAGE BREADTH INDICATORS TRIGGER BUY SIGNAL

by John Murphy,

Chief Technical Analyst, StockCharts.com

GLOBAL STOCKS TAKE OUT 50-DAY AVERAGES... My Tuesday message focused on the ability of global stock indexes to bounce off their 200-day averages (like the S&P 500) or to climb back above them (like foreign stocks). Today's focus is on the ability of global stocks to...   READ MORE 

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FINANCE SECTOR CHALLENGES MID JUNE HIGHS -- US BANCORP AND HUNTINGTON BOUNCE OFF RETRACECMENT ZONES -- BASE METALS ETF BREAKS FLAG RESISTANCE -- SILVER BOUNCES OFF SUPPORT ZONE -- GOLD AND DOLLAR ETFS FORM TRIANGLE CONSOLIDATIONS -- TWO WEEK VACATION

by John Murphy,

Chief Technical Analyst, StockCharts.com

FINANCE SECTOR CHALLENGES MID JUNE HIGHS... Finance was one of the leading sectors on Wednesday as the Finance SPDR (XLF) surged towards short-term resistance. Chart 1 shows XLF hitting support near broken resistance and the 61.8% retracement line throughout June. This support combination makes the area a good place...   READ MORE 

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BEARISH DOLLAR TREND IS HELPING GLOBAL STOCKS AND COMMODITIES BOUNCE OFF THEIR 200-DAY AVERAGES -- TREASURY PRICES ARE BACKING OFF SHARPLY FROM OVERHEAD RESISTANCE -- IT'S TIME FOR SUMMER RALLY WHICH ARGUES FOR A STRONGER JULY

by John Murphy,

Chief Technical Analyst, StockCharts.com

DOLLAR WEAKENS IN BEARISH CONSOLIDATION PATTERN... The U.S. Dollar Index continues to move sideways in what appears to be a bearish consolidation pattern. Chart 1 shows the June rally in the DB Bullish Dollar ETF (UUP) falling well short of its May peak. That increases the odds that the...   READ MORE 

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BIG TECHS LEAD MARKET HIGHER -- SMALL-CAP ETF HOLDS SHORT-TERM BREAKOUT -- AMAZON, COMCAST AND MICROSOFT POWER QQQ -- SEMI HOLDRS FORMS INSIDE DAYS AT SUPPORT -- TEXAS INSTRUMENTS AND INTEL HOLD KEY TO SMH

by John Murphy,

Chief Technical Analyst, StockCharts.com

BIG TECHS LEAD MARKET HIGHER... Link for todays video. For the third time in five sessions, the Nasdaq 100 ETF (QQQ) formed an exceptionally large white candlestick. A candlestick is white (hollow) when the close is above the open or black (filled) when the close is below the open. The...   READ MORE 

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FINANCE SECTOR LEADS THE MARKET LOWER -- MATERIALS SPDR FIRMS AT SUPPORT -- TECHNOLOGY SPDR TESTS DOUBLE TOP SUPPORT -- ENERGY SPDR FALLS WITHIN WEDGE -- MARKING KEY RESISTANCE FOR THE DOLLAR BULLISH ETF -- 13-WEEK TBILL YIELD FALLS TO 2008 LEVELS

by John Murphy,

Chief Technical Analyst, StockCharts.com

FINANCE SECTOR LEADS THE MARKET LOWER... Link for todays video. With a little pop-and-drop action this week, three key sector ETFs established clear resistance levels chartists can watch to define a follow through. One day wonder-rallies and oversold bounces can happen with short covering and bottom picking. Follow through to...   READ MORE 

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GLOBAL STOCKS AND COMMODITIES FALL TOGETHER AS DOLLAR RISES -- OIL LEADS COMMODITY DECLINE

by John Murphy,

Chief Technical Analyst, StockCharts.com

RISING DOLLAR HURTS STOCKS AND COMMODITIES... A surge in the U.S. Dollar is contributing to heavy selling of global stocks and commodities. Chart 1 shows the DB Bullish Dollar ETF (UUP) gapping more than 1% higher today and nearing a test of its mid-June peak. Chart 2 shows the...   READ MORE 

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SMALL-CAPS AND MID-CAPS LEAD STOCKS HIGHER -- GOLD MINERS ETF SPRINGS A BEAR TRAP -- BONDS MAINTAIN CONSOLIDATION AFTER THE FED -- NASDAQ NET ADVANCING VOLUME RATIO SURGES -- NYSE AD LINE CONTINUES TO SHOW STRENGTH

by John Murphy,

Chief Technical Analyst, StockCharts.com

SMALL-CAPS AND MID-CAPS LEAD STOCKS HIGHER... Link for todays video. Stocks stalled on Wednesday, but held most of their big gains from Tuesday as the Fed voted to maintain current policy. In particular, small-caps led the way higher the last two days with the Russell 2000 ETF (IWM) surging off...   READ MORE 

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RETAILERS LEAD OVERSOLD BOUNCE -- RSI TURNS OVERSOLD FOR RETAIL HOLDRS -- AIRLINE INDEX BOUNCES OFF SUPPORT -- ALASKA, JETBLUE AND UNITED-CONTINENTAL LEAD AIRLINES -- NYSE NET NEW HIGHS FLIRT WITH NEGATIVE TERRITORY -- GERMAN DAX FIRMS AT KEY RETRACEMENT

by John Murphy,

Chief Technical Analyst, StockCharts.com

RETAILERS LEAD OVERSOLD BOUNCE... Link for todays video. Stocks edged higher in early trading on Monday with retailers showing relative strength. It is going to be a big, and possibly volatile, week for the markets. Several key ETFs are testing their March lows as the Papandreou government braces for a...   READ MORE 

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XLB, XLI AND XLK TEST 2011 SUPPORT LEVELS -- SMH DECLINES TO MARCH LOW -- FINANCE AND BANKING ETFS MAY HOLD THE KEY -- DEFENSIVE SECTORS ARE HOLDING UP THE BEST -- XLP, XLU AND XLV CORRECT AFTER STRONG ADVANCES

by John Murphy,

Chief Technical Analyst, StockCharts.com

XLB, XLI AND XLK TEST 2011 SUPPORT LEVELS... Link for todays video. In addition to a number of key indices, several sector SPDRs are testing support from the March lows. These lows are important because stocks declined rather sharply from mid February to mid March. The subsequent surge off the...   READ MORE 

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STOCK INDEXES ARE TESTING IMPORTANT CHART SUPPORT NEAR 200-DAY AVERAGES AND LOOK OVERSOLD -- THAT COULD GIVE WAY TO A SUMMER BOUNCE -- BOND PRICES ARE NEARING OVERHEAD RESISTANCE -- ANY BOUNCE IN STOCKS AND COMMODITIES MAY DEPEND ON A FIRMER EURO

by John Murphy,

Chief Technical Analyst, StockCharts.com

%NYSE STOCKS ABOVE 200-DAY AVERAGE STILL DROPPING... Last Thursday's message showed the point & figure version of the % NYSE stocks above their 200-day moving average in a downside correction. I suggested that the first sign of improvement would be a three-box reversal to a rising X column. We...   READ MORE 

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SPY FILLS TUESDAYS GAP -- MARCH LOWS COMING INTO PLAY FOR QQQ -- BREADTH INDICATORS REFLECT BROAD SELLING PRESSURE -- OIL PLUNGES ON ECONOMIC REPORT AND STRONG DOLLAR -- DOLLAR ETF FORMS HIGHER LOW AS MOMENTUM IMPROVES

by John Murphy,

Chief Technical Analyst, StockCharts.com

SPY FILLS TUESDAYS GAP ... Link for todays video. Stocks were sharply lower on Wednesday as the risk-off trade returned after Tuesdays sharp advance. The Nasdaq 100 ETF (QQQ) and S&P 500 ETF (SPY) broke below Mondays lows with sharp declines on Wednesday. Chart 1 shows SPY failing to...   READ MORE 

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OIL ETFS BREAK SUPPORT WITH SHARP DECLINES -- XLE BREAKS NECKLINE SUPPORT WITH LARGE DECLINE -- CVX, SLB AND XOM LEAD ENERGY SPDR LOWER -- WAVE COUNT INDICATES FIFTH OF THE FIFTH FOR S&P 500 -- HAS ABC CORRECTION STARTED OR JUST ENDED?

by John Murphy,

Chief Technical Analyst, StockCharts.com

OIL ETFS BREAK SUPPORT WITH SHARP DECLINES... The 12-Month US Oil Fund (USL) and the US Oil Fund (USO) broke short-term support levels with sharp declines on Monday. Friday I wrote about the triple whammy hitting oil as Saudi Arabia increased output, stocks were down and the Dollar was up....   READ MORE 

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SETTING DOWNSIDE TARGETS FOR SPY AND QQQ -- AD VOLUME LINES FORM LARGE DOUBLE TOPS -- NASDAQ NET NEW HIGHS TURN NEGATIVE -- DOLLAR SURGES TO FORM HIGHER LOW -- STRENGTH IN THE DOLLAR WEIGHS ON GOLD -- OIL DROPS ON TRIPLE WHAMMY

by John Murphy,

Chief Technical Analyst, StockCharts.com

SETTING DOWNSIDE TARGETS FOR SPY AND QQQ... The S&P 500 ETF (SPY) is in the midst of a correction within a bigger uptrend. One look at a chart 2 year chart confirms this uptrend. In fact, the decline of the last six weeks looks rather mild when compared...   READ MORE 

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% NYSE STOCKS ABOVE 50 AND 200-DAY MOVING AVERAGES CONTINUES TO DROP -- S&P 500 BOUNCES OFF LOWER 100-DAY BOLLINGER BAND -- BUT NEEDS TO CLEAR SOME OVERHEAD RESISTANCE BARRIERS TO SIGNAL END OF CORRECTION

by John Murphy,

Chief Technical Analyst, StockCharts.com

% NYSE STOCKS ABOVE 50-DAY MA STILL DROPPING... Nearly a month ago on May 16 I showed the % of NYSE stocks trading over their 50-day moving averages ($NYA50R) dropping below 50% which betrayed a weakening market beneath the surface. As of yesterday, that percentage had dropped to 23% which is the...   READ MORE 

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DOW INDUSTRIALS SPDR TESTS APRIL LOWS -- SEMIS AND NETWORKING ETFS LEAD TECH SECTOR LOWER -- GOLD MINERS ETFS TEST MAJOR SUPPORT LEVELS -- METALS & MINING SPDR NEARS 2011 LOWS -- AGRICULTURE ETF CONSOLIDATES AT SUPPORT

by John Murphy,

Chief Technical Analyst, StockCharts.com

DOW INDUSTRIALS SPDR TESTS APRIL LOWS... Link for todays video. The Dow Industrials SPDR (DIA) is clearly in a downtrend since early May. How far will this decline extend? The April lows mark the first test and the March lows mark the second test. Chart 1 shows DIA trying to...   READ MORE 

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FINANCE SECTOR LEADS MARKET LOWER -- WELLS FARGO AND JP MORGAN WEIGH ON XLF -- AIRLINE INDEX GIVES BACK MOST OF PRIOR ADVANCE -- AIRLINES PUSH DOW TRANSPORTS BELOW APRIL LOWS -- UPS AND FDX LEAD TRANSPORTS LOWER

by John Murphy,

Chief Technical Analyst, StockCharts.com

FINANCE SECTOR LEADS MARKET LOWER... Link for todays video. The finance sector led the market lower on Monday with another sharp decline. Chart 1 shows the Finance SPDR (XLF) moving below 15 to enter a potential support zone. Broken resistance and the 62% retracement mark potential support in the 14....   READ MORE 

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S&P 500 VIOLATES IMPORTANT SUPPORT LINES TO ENTER DOWNSIDE CORRECTION -- THE MARCH LOW IS NEXT DOWNSIDE TARGET -- HIGH YIELD BONDS CORRECT ALONG WITH STOCKS -- FALLING DOLLAR BOOSTS COMMODITIES AND FOREIGN STOCKS

by John Murphy,

Chief Technical Analyst, StockCharts.com

S&P 500 VIOLATED MAJOR UP TRENDLINE... Thurday's message showed the S&P 500 threatening two important support lines. Unfortunately, both have been broken. Chart 1 shows the SPX closing below its 100-day average (green line) for the first time since last August. The weekly bars...   READ MORE 

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SHORT-TERM DOWNTRENDS WITHIN LONG-TERM UPTRENDS -- BREADTH INDICATORS HAVE YET TO BREAK DOWN -- RETAILERS BEAR BRUNT OF SELLING PRESSURE -- HD AND WMT BREAK SUPPORT AS AMZN TESTS SUPPORT -- OIL ETFS FORM BEAR FLAGS

by John Murphy,

Chief Technical Analyst, StockCharts.com

SHORT-TERM DOWNTRENDS WITHIN LONG-TERM UPTRENDS ... Link for todays video. News this week was certainly not positive. The economic reports showed that the economy was slowing and the employment reports showed sluggish job growth. The week ended with non-farm payrolls increasing by 54,000 jobs in May, which was well below...   READ MORE 

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S&P 500 IS THREATENING IMPORTANT SUPPORT LINES -- NEGATIVE WEEKLY SIGNALS OVERRIDE DAILY CHARTS -- BONDS AND STOCKS HAVE BEEN SENDING CONFLICTING SIGNALS -- IT LOOKS LIKE BONDS MAY HAVE BEEN RIGHT

by John Murphy,

Chief Technical Analyst, StockCharts.com

BONDS AND STOCKS SEND CONFLICTING MESSAGES... One of the problems market watchers have been grappling with over the past couple of months is the conflicting messages being sent by bonds and stocks. Here's why. Chart 1 compares the S&P 500 (price bars) to the 10-Year T-Note...   READ MORE 

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TREASURIES SURGE ON WEAK ECONOMIC NUMBERS -- 10-YEAR TREASURY YIELD BREAKS 3% -- RESISTANCE LEVELS COME INTO PLAY FOR DIA, QQQ AND SPY -- FINANCE LEADS LOWER AS SUPPORT BREAK HOLDS -- OIL FOLLOWS STOCKS LOWER -- MONEY MOVES INTO GOLD

by John Murphy,

Chief Technical Analyst, StockCharts.com

TREASURIES SURGE ON WEAK ECONOMIC NUMBERS... Link for todays video. US Treasury Bonds continued their relentless rise after two economic releases came up short. First, ADP Employer Services reported that private sector job growth for May increased the smallest amount since September. Second, the Institute for Supply Management (ISM) reported...   READ MORE 

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GLOBAL STOCKS SURGE -- EUROPE RALLIES ON GREEK AID -- CHINA LEADS EMERGING MARKETS HIGHER -- S&P 500 CLEARS MOVING AVERAGE LINES -- SMALL CAPS AND NASDAQ CLEAR INITIAL RESISTANCE -- A LOT OF TODAY'S BUYING WAS DUE TO THE FALLING DOLLAR

by John Murphy,

Chief Technical Analyst, StockCharts.com

STRONG EURO BOOSTS EUROPEAN STOCKS ... News of more aid for Greece pushed the Euro higher today and European stocks along with it. Chart 1 shows the Euro climbing to a three-week high today and finishing back above its 50-day average. European stocks surged along with it. Chart 2 shows Europe...   READ MORE 

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BETTER NEWS ON GREECE BOOSTS EURO AND EUROPEAN SHARES -- THAT'S WEAKENING THE DOLLAR WHICH IS GOOD FOR GLOBAL STOCKS AND COMMODITIES

by John Murphy,

Chief Technical Analyst, StockCharts.com

RALLY IN EUROPE AND EURO BOOSTS GLOBAL STOCKS AND COMMODITIES... News of more aid to Greece is giving a big boost to European stocks and the Euro. The first three charts show German, French, and British stock indexes jumping sharply this morning. All three are climbing back above their 50-day...   READ MORE 

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INDUSTRIALS SPDR AND S&P MIDCAP SPDR BOUNCE OFF APRIL LOWS -- REAL ESTATE ISHARES FORMS BULL FLAG -- DOW INDUSTRIALS FIRMS AT POTENTIAL INFLECTION POINT -- DOW TRANSPORTS SHOWS RELATIVE STRENGTH -- NATURAL GAS SURGES OFF MARCH-APRIL LOWS

by John Murphy,

Chief Technical Analyst, StockCharts.com

INDUSTRIALS SPDR AND S&P MIDCAP SPDR BOUNCE OFF APRIL LOWS... Link for todays video. Basic trend analysis stipulates that an uptrend consists of rising peaks and rising troughs. The trick, as always, is picking the right peaks and trough upon which to base the trend. The most recent...   READ MORE 

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RECENT DROP IN COMMODITIES HAS COINCIDED WITH DOLLAR RALLY -- LONG TERM DOLLAR CHART, HOWEVER, REMAINS BEARISH WHICH SHOULD BE POSITIVE FOR COMMODITY ASSETS -- EMERGING MARKETS TEST 200-DAY AVERAGES

by John Murphy,

Chief Technical Analyst, StockCharts.com

COMMODITIES BOUNCE AS DOLLAR PULLS BACK ... I wrote on Tuesday that commodities (and stocks related to them) had fallen back to important support levels and were starting to stabilize. I also suggested that they appeared to present good value at current levels. As you know, the trend of commodity assets...   READ MORE 

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SMALL-CAPS LEAD OVERSOLD BOUNCE -- HOME CONSTRUCTION ETF FORGES BULLISH ENGULFING TOL FAILS TO BREAK OUT AS PMH REMAINS WEAK -- OIL AND GASOLINE ETFS GET OVERSOLD BOUNCES -- ENERGY SPDR BOUNCES OFF MARCH LOWS -- OIL SERVICE HOLDRS SETS A BEAR TRAP

by John Murphy,

Chief Technical Analyst, StockCharts.com

SMALL-CAPS LEAD OVERSOLD BOUNCE FOR STOCKS... Link for todays video. Stocks moved higher on Wednesday, but the bounce was rather uneven and uninspiring. Small-caps led the way higher as the Russell 2000 ETF (IWM) gained over 1%. Large-caps lagged as the S&P 500 gained around a third of...   READ MORE 

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OVERSOLD COMMODITIES BOUNCE OFF CHART SUPPORT -- SO DO STOCKS TIED TO THEM -- TECHNOLOGY STOCKS WEIGH ON MARKET -- S&P 500 IS TESTING 100-DAY AVERAGE WHICH IS AN IMPORTANT SUPPORT LINE

by John Murphy,

Chief Technical Analyst, StockCharts.com

OVERSOLD COMMODITIES START TO BOUNCE... After suffering a sharp downside correction during May, commodities are starting to stabilize. A combination of chart support and a short-term oversold condition also suggest that the worst may be over for commodity assets. Chart 1, for example, shows the DB Commodities Tracking Index (DBC)...   READ MORE 

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US STOCKS FOLLOW EUROPEAN STOCKS LOWER -- BONDS AND DOLLAR ADVANCE AS STOCKS AND COMMODITIES DECLINE -- GERMAN, FRENCH AND DUTCH INDICES MOVE SHARPLY LOWER -- ITALIAN AND SPANISH STOCK INDICES BREAK SUPPORT - GREEK INDEX HITS NEW LOW

by John Murphy,

Chief Technical Analyst, StockCharts.com

US STOCKS FOLLOW EUROPEAN STOCKS LOWER... Link for todays video. Weakness in Europe spread to the US as stocks opened sharply lower on Monday and remained under selling pressure. Chart 1 shows the Dow Industrials down around 100 points. Despite the May decline, the overall trend remains up as the...   READ MORE