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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...   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...   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 

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FALLING FLAGS REMAIN FOR DIA AND SPY -- STRENGTH IN THE DOLLAR WEIGHS ON OIL -- BOND ETFS HIT RETRACEMENTS -- GOLD MINERS ETF TESTS MAJOR SUPPORT LEVEL -- GOLD ETF FORMS TRIANGLE CONSOLIDATION

by John Murphy,

Chief Technical Analyst, StockCharts.com

FALLING FLAGS REMAIN FOR DIA AND SPY... Link for todays video. Stocks got off to a weak start on Friday with the Dow Industrials SPDR (DIA) and S&P 500 ETF (SPY) moving lower in early trading. With these declines, lower highs are taking shape again this week to...   READ MORE 

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RUSSELL 2000 ETF BOUNCES OFF SUPPORT -- DOW INDUSTRIALS SPDR FORMS FALLING FLAG -- OIL GETS OVERSOLD BOUNCE -- ENERGY SPDR FINDS SUPPORT AT MARCH LOW -- FALLING BULLISH PERCENT INDEX IS SHORT-TERM BEARISH

by John Murphy,

Chief Technical Analyst, StockCharts.com

RUSSELL 2000 ETF BOUNCES OFF SUPPORT... Link for todays video. After a sharp decline the prior five days, stocks got an oversold bounce with small-caps leading the way. Chart 1 shows the Russell 2000 ETF (IWM) getting a bounce off support from the early April low. Support in this...   READ MORE 

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MARKET APPEARS TO HAVE COMPLETED FIVE WAVES OVER THE LAST YEAR WHICH INCREASES THE ODDS FOR A DOWNSIDE CORRECTION -- MOVING AVERAGE TRENDS WEAKEN -- MARKET MAY NOW REVISIT MARCH LOW AS PART OF DOWNSIDE CORRECTION

by John Murphy,

Chief Technical Analyst, StockCharts.com

THE MARKET'S HAD A FIVE WAVE ADVANCE... Determining Elliott Wave counts can be very subjective. One way to make it little easier is to employ a "ZigZag"overlay on the price chart. [The ZigZag is located in the same Overlays menu that includes moving averages]. The...   READ MORE 

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FINANCE SECTOR ON VERGE OF P&F TRIPLE BOTTOM BREAKDOWN -- BAR CHART CONFIRMS NEXT SUPPORT FOR XLF -- BANK OF AMERICA, CITIGROUP AND JP MORGAN BREAK SUPPORT -- THE KEY P&F LEVEL FOR NET NEW HIGHS -- USING P&F CHARTS TO GAUGE RELATIVE STRENGTH OR WEAKNESS

by John Murphy,

Chief Technical Analyst, StockCharts.com

FINANCE SECTOR ON VERGE OF P&F TRIPLE BOTTOM BREAKDOWN... Link for todays video. I am on the road so Monday's Market Message is coming a bit early. John Murphy featured the Finance SPDR (XLF) as it tested its 2011 lows on Friday and showed relative weakness....   READ MORE 

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EURO WEAKNESS/DOLLAR STRENGTH PRESSURES STOCKS AND COMMODITIES -- EMERGING MARKETS WEAKEN -- FINANCIALS WEAKEN AS TECHS MEET RESISTANCE NEAR OLD HIGH -- DROP IN BOND YIELDS MAY EXPLAIN RECENT MOVE INTO DIVIDEND PAYING STOCKS -- S&P RETESTS NECKLINE

by John Murphy,

Chief Technical Analyst, StockCharts.com

EURO BREAKS 50-DAY LINE... Last week's sharp drop in the Euro (and rebound in the dollar) contributed to heavy selling in commodity assets and increased the odds for a stock correction. Unfortunately, the short-term picture has weakened more with the Euro falling below its 50-day...   READ MORE 

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ENERGY AND MATERIALS WEAKEN AGAIN AS COMMODITIES SEE RENEWED SELLING -- FREEPORT MCMORGAN COPPER & GOLD FOLLOWS COPPER LOWER -- ADD DR. PEPPER AND CVS TO DEFENSIVE WINNERS

by John Murphy,

Chief Technical Analyst, StockCharts.com

COMMODITIES CONTINUE TO WEAKEN... Commodities are coming under renewed selling pressure after the oversold bounce of the last two days. The following charts also show that this week's rebound came on much lighter volume that last week's heavy selling. That's a strong indication that...   READ MORE 

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QQQ AND IWM ESTABLISH IMPORTANT SHORT-TERM SUPPORT -- XLF BOUNCES WITHIN TRIANGLE CONSOLIDATION -- REGIONAL BANK SPDR FORMS MORNING DOJI STAR -- TRANSPORTS AND RETAILERS REMAIN STRONG OVERALL -- AIRLINE INDEX BREAKS RESISTANCE WITH BIG SURGE

by John Murphy,

Chief Technical Analyst, StockCharts.com

QQQ AND IWM ESTABLISH IMPORTANT SHORT-TERM SUPPORT... Link for todays video. With a bounce over the last few days, the Nasdaq 100 ETF (QQQ) and Russell 2000 ETF (IWM) established important short-term levels to watching going forward. It is important to realize that major trend reversals occur in...   READ MORE 

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JOBS REPORT GIVES SPY A BOUNCE OFF BROKEN RESISTANCE -- CONTINUING UPTREND IN BONDS TARGETS 2010 HIGHS -- VOLATILITY CONTRACTS AS TRADING RANGES EXTEND FOR XLF AND KRE -- HOME CONSTRUCTION AND STEEL ETFS CONSOLIDATE WITH RELATIVE WEAKNESS

by John Murphy,

Chief Technical Analyst, StockCharts.com

JOBS REPORT GIVES SPY A BOUNCE OFF BROKEN RESISTANCE... Link for todays video. After a breakout and 52-week high for the S&P 500 ETF (SPY) last week, it was pretty much all down hill this week. SPY opened strong on Monday, but selling pressure quickly took over...   READ MORE 

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COMMODITIES PLUNGE MOST IN TWO YEARS -- ENERGY SHARES BREAK SUPPORT -- OVERSOLD DOLLAR RALLIES ON VOLUME -- EMERGING MARKET ISHARES TURN DOWN -- FALLING BOND YIELDS MAY BE WARNING FOR STOCKS

by John Murphy,

Chief Technical Analyst, StockCharts.com

COMMODITIES PLUNGE... This morning's message showed a number of commodity ETFs falling below their 50-day lines and warned of a broader selloff in the making. By day's end, the CRB Index had fallen 17 points for the biggest loss in two years. Chart 1 shows...   READ MORE 

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DOLLAR BOUNCE PUTS MORE DOWNSIDE PRESSURE ON COMMODITIES -- BREAKDOWN IN COPPER HINTS AT ECONOMIC WEAKNESS -- THAT'S GIVING A BOOST TO BONDS BUT LEAVES STOCKS VUNERABLE -- WEEKLY STOCK CHARTS SHOW NEGATIVE DIVERGENCE

by John Murphy,

Chief Technical Analyst, StockCharts.com

EURO SELLING BOOSTS OVERSOLD DOLLAR... Arthur Hill's Monday message showed the U.S. Dollar Index in oversold territory for the first time in eighteen months. I warned on Tuesday that a dollar bounce would put even more downside pressure on commodities. Commodity selling started in silver and has...   READ MORE 

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ENERGY SPDR FORMS EVE-ADAM DOUBLE TOP -- OIL SERVICE HOLDRS BREAKS THIRD FAN LINE -- VOLATILE MATERIALS SPDR MOVES BACK INTO GAP ZONE -- CRUDE MOVES LOWER ALONG WITH STOCKS -- OIL FUND ETFS HEAD FOR SUPPORT TESTS

by John Murphy,

Chief Technical Analyst, StockCharts.com

ENERGY SPDR FORMS EVE-ADAM DOUBLE TOP... Link for todays video. With two equal highs in April and a support test in May, the Energy SPDR (XLE) has a double top working. Chart 1 shows XLE forming an Adam and Eve Double Top. This particular pattern comes from Thomas Bulkowski,...   READ MORE 

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DEFENSIVE SECTORS CONTINUE TO ATTRACT NEW MONEY -- THAT INCLUDES HEALTHCARE, STAPLES, AND UTILITIES -- MORE UPSIDE BREAKOUTS -- WEAKNESS IN SILVER STOCKS WARNED OF SILVER BREAKDOWN -- SILVER TRIGGERS SHORT-TERM SELL SIGNAL

by John Murphy,

Chief Technical Analyst, StockCharts.com

NEW SECTOR LEADERS ARE DEFENSIVE ... I've written before about the shift in market leadership away from former leaders -- like energy -- into defensive groups like staples and healthcare. We can add utilities to that defensive list as well. Chart 1 shows the "relative" performance of those four...   READ MORE 

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BROKEN RESISTANCE TURNS INTO FIRST SUPPORT FOR SPY -- QQQ TURNS INDECISIVE ABOVE RESISTANCE -- SMALL-CAPS SHOW RELATIVE WEAKNESS -- SIX-MONTH CYCLE TURNS BEARISH IN MAY -- NIKKEI SURGES AS SHANGHAI TESTS SUPPORT

by John Murphy,

Chief Technical Analyst, StockCharts.com

BROKEN RESISTANCE TURNS INTO FIRST SUPPORT FOR SPY... Link for todays video. Broken support turns into resistance. This is a basic tenet of technical analysis. Chartists can reverse the rolls because broken resistance turns into support as well. With a big surge the last two weeks, the S&P...   READ MORE 

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PROJECTING $SPX TARGETS WITH ELLIOTT WAVE -- NYSE AD LINE HITS NEW HIGH WITH INDEX -- NASDAQ AD VOLUME LINE NEARS FEBRUARY HIGH -- UPTREND IN GOLD COULD STALL IN THE NEXT FEW WEEKS -- DOLLAR BECOMES OVERSOLD FOR FIRST TIME IN 18 MONTHS

by John Murphy,

Chief Technical Analyst, StockCharts.com

PROJECTING $SPX TARGETS WITH ELLIOTT WAVE COUNT ... Link for todays video. Long-term, the S&P 500 sports three five wave advances of differing degrees. The black Roman numbers show the largest degree wave on the chart 1. Notice that Wave-II was rather shallow and Wave-IV was...   READ MORE 

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PRECIOUS METALS RESUME UPTREND BUT STILL LOOK OVER-EXTENDED -- THIS WEEK'S LOW HAS PROVIDED A NEW SUPPORT LEVEL FOR STOPLOSS PROTECTION -- APPLYING PARABOLIC SIGNALS TO SILVER AND GOLD

by John Murphy,

Chief Technical Analyst, StockCharts.com

SILVER PROVIDES NEW SUPPORT POINT... My Tuesday message expressed concern that Monday's high-volume day might have marked a short-term top for silver, and precious metals in general. Those concerns about silver being dangerously over-extended remain. However, renewed weakness in the U.S. Dollar, and Mr....   READ MORE 

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BASE METALS ETF STALLING AS SPY HITS NEW HIGH -- BONDS HIT RESISTANCE AS YIELDS HIT SUPPORT -- FED ADMITS TO A LITTLE INFLATION -- RETAIL ETFS HIT NEW 52-WEEK HIGHS -- VIEWING CANDLEGLANCE CHARTS

by John Murphy,

Chief Technical Analyst, StockCharts.com

BASE METALS ETF STALLING AS SPY HITS NEW HIGH... CandleGlance charts make it easy view and compare the key intermarket areas. I realize that these charts are small and not well suited for detailed analysis. These represent another charting alternative available at StockCharts.com. Details on creating these charts can...   READ MORE 

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STOCKS RESUME UPTREND AS MAJOR INDEXES HIT THREE YEAR HIGHS -- INDUSTRIAL AND TRANSPORTATION LEADERS ARE CUMMINS, ILLINOIS TOOL, AND UNION PACIFIC -- STAPLE LEADERS ARE GENERAL MILLS, HEINZ, AND PEPSICO

by John Murphy,

Chief Technical Analyst, StockCharts.com

STOCK INDEXES REACH THREE-YEAR HIGHS ... All three major stock indexes cleared chart resistance to resume their uptrends. As an added bonus, volume also rose on the price gains. Chart 2 shows the S&P 500 SPDRs clearing the neckline on the "inverse head and shoulders" that...   READ MORE 

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GOLD AND SILVER OPEN LOWER -- SO DO THEIR STOCKS WHICH ARE EVEN WEAKER -- THAT INCREASES THE ODDS FOR A PRECIOUS METAL CORRECTION

by John Murphy,

Chief Technical Analyst, StockCharts.com

SILVER AND SILVER STOCKS OPEN LOWER ... As a follow-up to my earlier message on the likelihood that silver is peaking, the first three charts show silver assets opening lower today. The 15-minute bars in Chart 1 show Silver iShares trading below yesterday's intra-day low at...   READ MORE 

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SILVER MAY BE PUTTING IN CLIMAX TOP NEAR $50 TARGET -- WEAKNESS IN SILVER STOCKS ALSO WARNS OF PROFIT-TAKING IN PRECIOUS METALS

by John Murphy,

Chief Technical Analyst, StockCharts.com

OVERBOUGHT SILVER REACHES 1980 PEAK ... We've been enthusiastically bullish on precious metals and silver in particular. The spectacular silver rally now looks dangerously overextended. In addition, it has reached its 1980 high at $50 as shown in Chart 1. The monthly RSI line shows silver to be at...   READ MORE 

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SPY CHALLENGES NECKLINE RESISTANCE -- MID-CAPS AND SMALL-CAPS CONTINUE SHOWING RELATIVE STRENGTH -- FINANCE AND TECHNOLOGY LAG AS DEFENSIVE SECTORS LEAD -- PERCENT OF STOCKS ABOVE 50-DAY SMA REMAINS BULLISH

by John Murphy,

Chief Technical Analyst, StockCharts.com

SPY CHALLENGES NECKLINE RESISTANCE... Link for todays video. With last weeks surge back to the February highs, the S&P 500 ETF (SPY) has traced out an inverse head-and-shoulders. These patterns can form as continuation or reversal patterns. An inverse head-and-shoulders pattern after an extended...   READ MORE 

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NEW DOLLAR DOWNLEG MAY BE STARTING FROM BEARISH TRIANGLE -- THAT BENEFITS STOCKS AS WELL AS COMMODITIES -- THE FALLING DOLLAR ALSO GIVES AN ADDED BOOST TO FOREIGN SHARES

by John Murphy,

Chief Technical Analyst, StockCharts.com

TRIANGLE FORMATION IS BEARISH FOR THE DOLLAR... My market message from two Thursdays ago (April 7) showed a bearish triangle forming on the monthly chart of the US Dollar Index. Chart 1 is an updated version of that chart and shows the two converging trendlines that have been forming since...   READ MORE 

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QQQ FOLLOWS THROUGH ON BIG HAMMER -- INTEL POWERS SEMICONDUCTORS HIGHER -- FINANCE SECTOR IS BADLY UNDERPERFORMING THE MARKET -- OIL AND EURO SURGE ALONG WITH STOCKS -- JUNK BOND ETFS SURGE WITH THE STOCK MARKET

by John Murphy,

Chief Technical Analyst, StockCharts.com

QQQ FOLLOWS THROUGH ON BIG HAMMER... Link for todays video. The Nasdaq 100 ETF (QQQ) followed Mondays hammer with a small gain on Tuesday and a big gap on Wednesday. This massive hammer was featured in Mondays Market Message. Techs led the charge on Wednesday with QQQ jumping over 2%...   READ MORE 

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MARKETS MOVING BACK TOWARDS RISK-OFF TRADE -- US GETS DOWNGRADE AND EURO DECLINES -- BOND ETFS EXTEND RALLY AS MONEY MOVES OUT OF STOCKS -- QQQQ FORMS A BIG HAMMER AT KEY RETRACEMENT -- DOW BACKS OFF HIGHS WITH MACD DIVERGENCE

by John Murphy,

Chief Technical Analyst, StockCharts.com

MARKETS MOVING BACK TOWARDS RISK-OFF TRADE... Link for todays video. The risk-off trade is making a comeback. A risk-on environment favors stocks, commodities (economic growth) and the Euro (debt stability). Conversely, a risk-off environment favors Treasuries (weak economy) and the Dollar (safety). Stocks and commodities perform...   READ MORE 

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RELATIVE WEAKNESS IN XLF AND XLY PRECEDED 2007 PEAK -- XLY, XLI AND IWM ARE HOLDING UP WELL -- BONDS EXTEND GAINS AFTER CPI REPORT -- REVISITING THE FOSBACK HIGH LOW LOGIC INDEX -- NASDAQ AND NYSE NEW LOWS RATIOS REMAIN SUBDUED

by John Murphy,

Chief Technical Analyst, StockCharts.com

RELATIVE WEAKNESS IN FINANCE AND CONSUMER DISCRETIONARY PRECEDED 2007 PEAK... Link for todays video. The performance of small-caps and the four offensive sectors is important to the health of the market. Small-caps represent domestic oriented companies that are more sensitive to the economy. The offensive sectors represent four...   READ MORE 

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SECTOR ROTATION MODEL SHOWS WHERE MONEY GOES AROUND MARKET TOPS -- UPTURN IN RELATIVE PERFORMANCE OF STAPLES AND HEALTHCARE WARNS OF MARKET PULLBACK -- KRAFT FOODS AND SAFEWAY BREAKOUTS -- BRISTOL MYERS HITS NINE-YEAR HIGH

by John Murphy,

Chief Technical Analyst, StockCharts.com

THE SECTOR ROTATION MODEL ... My Tuesday message talked about how sectors rotate near market tops. I explained that market leadership by materials and energy (which carries inflationary expectations) is often a sign of market that's in need of a correction or a consolidation. I also explained that money...   READ MORE 

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SPY GAPS LOWER TO FORGE ISLAND REVERSAL -- TREASURIES BOUNCE AS STOCKS WEAKEN -- AGGREGATE AND CORPORATE BOND ETFS FOLLOW TREASURIES -- AEROSPACE-DEFENSE ETF BREAKS DOWN AFTER BEARISH DIVERGENCE -- GENERAL DYNAMICS, LOCKHEED AND RAYTHEON PLUNGE

by John Murphy,

Chief Technical Analyst, StockCharts.com

SPY GAPS LOWER TO FORGE ISLAND REVERSAL... Link for todays video. With a pair of opposing and overlapping gaps, the S&P 500 ETF (SPY) formed an island reversal over the last few weeks. First, chart 1 shows the ETF gapping above 132 with a surge on March 30th....   READ MORE 

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GLOBAL STOCKS AND COMMODITIES SELL OFF -- BIGGEST LOSERS ARE ENERGY, MATERIALS AND UTILITIES -- LAGGING FINANCIALS AND TECHNOLOGY ROLL OVER -- MONEY MOVES TO STAPLES AND BIG PHARMA -- S&P 500 MAY BE ENTERING CONSOLIDATION PHASE

by John Murphy,

Chief Technical Analyst, StockCharts.com

DEFENSIVE ROTATION ... Last week's messages expounded on a number of intermarket themes, which included the "new normal" relationships among the four main asset classes (bonds, stocks, commodities, and currencies). We're seeing more of that today but in the opposite direction. Stocks and commodities are...   READ MORE 

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SMALL-CAPS LEAD CORRECTION -- QQQ BEGINS A FLAT OR TRIANGLE 4TH WAVE -- QQQ AND XLK FORM FLAG PATTERNS -- NETWORKING ETF REMAINS WEAK -- SEMICONDUCTOR HOLDRS HITS RESISTANCE -- LUMBER BREAKS DOWN AS ITB STALLS AT RESISTANCE

by John Murphy,

Chief Technical Analyst, StockCharts.com

SMALL-CAPS LEAD CORRECTIVE PHASE... Link for todays video. There are two ways to work off an overbought condition: pullback or consolidate. Actually, there is a third that is somewhere in between a pullback and a consolidation. Many indices and ETFs became overbought after the surge from mid March to...   READ MORE 

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WEST TEXAS INTERMEDIATE SURGES ABOVE 111 -- AIRLINES HURT BY RISING OIL PRICES -- DYNAMIC YIELD CURVE WAS FLAT IN OCTOBER 2007 -- STEEP YIELD CURVE BENEFITS BANKS AND ECONOMY -- 2-10 TREASURY SPREAD REMAINS WIDE

by John Murphy,

Chief Technical Analyst, StockCharts.com

WEST TEXAS INTERMEDIATE SURGES ABOVE 111... Link for todays video. Weakness in the Dollar and strength in the stock market continue to support higher oil prices. John Murphy has spoken at length about the inverse relationship between commodities and the Dollar. This means one goes up when the other goes...   READ MORE 

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EUROPEAN CURRENCIES CHALLENGE 2010 HIGHS ON RATE HIKES -- COMMODITY CURRENCIES REMAIN STRONG -- EVEN EMERGING MARKET CURRENCIES ARE RISING -- BUT GOLD IS RISING EVEN FASTER -- GOLD'S DUAL ROLE AS AN ALTERNATE CURRENCY ADD TO ITS APPEAL

by John Murphy,

Chief Technical Analyst, StockCharts.com

EUROPEAN CURRENCIES RISE ON HIGHER RATES... As expected, the European central bank raised interest rates by a quarter point today for the first time in two years. Expectations for that hike (and maybe more to come) have helped boost the Euro against the U.S. Dollar over the past few...   READ MORE 

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CHAIKIN MONEY FLOW REMAINS NEGATIVE TO SPY -- FINANCE SECTOR AND REGIONAL BANKS PROVIDE A SPARK -- CITIGROUP, GOLDMAN AND WELLS FARGO LIFT XLF -- INDUSTRIAL COMMODITIES CONTINUE TO SHOW STRENGTH -- BOND ETF BREAKS FLAG SUPPORT

by John Murphy,

Chief Technical Analyst, StockCharts.com

CHAIKIN MONEY FLOW REMAINS NEGATIVE TO SPY... Link for todays video. The S&P 500 ETF (SPY) remains in an uptrend overall and is currently challenging the February highs. Chart 1 shows the ETF gapping above 132 and forming six indecisive candlesticks the last six days. Indecisive candlesticks have...   READ MORE 

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PRECIOUS METALS SOAR ON WEAK DOLLAR -- GOLD HITS NEW RECORD AND FOLLOWS SILVER HIGHER -- PRECIOUS METAL STOCKS FOLLOW THE METALS UP -- NEW STOCK BREAKOUTS INCLUDE GOLDCORP AND SILVER STANDARD RESOURCES

by John Murphy,

Chief Technical Analyst, StockCharts.com

GOLD HITS NEW RECORD ... Gold prices are surging to new record high today which is erasing the short-term setback of a couple of weeks ago. Chart 1 shows the Gold Trust Shares (GLD) breaking decisively through its late 2010 highs on rising volume. And, as usual, silver is leading...   READ MORE 

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A REVIEW OF THE NEW NORMAL IN INTERMARKET RELATIONSHIPS -- BONDS AND STOCKS TREND INVERSELY -- STOCKS AND COMMODITIES TREND TOGETHER -- THE MAIN REASON FOR THE CHANGES IS THE DEFLATIONARY ENVIRONMENT OVER THE LAST DECADE

by John Murphy,

Chief Technical Analyst, StockCharts.com

INTERMARKET REVIEW... Over the weekend, Chip Anderson reviewed the Intermarket Picture based on the "normal" relationships that have worked for decades in the financial markets. Some of them, however, have changed in recent years (as we've pointed out in our market messages). Those intermarket changes, and...   READ MORE 

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SEMICONDUCTOR HOLDRS BREAK CHANNEL SUPPORT -- INTEL AND AMD LEAD SEMIS LOWER -- NETWORKING STOCKS WEIGHT ON TECHS AGAIN -- QUALCOMM AND JUNIPER LEAD NETWORKERS LOWER -- CORN, SOYBEANS AND WHEAT BOUNCE ALONG WITH STOCK MARKET

by John Murphy,

Chief Technical Analyst, StockCharts.com

SEMICONDUCTOR HOLDRS BREAK CHANNEL SUPPORT... Link for todays video. The Semiconductor HOLDRS (SMH) continues to show relative weakness with a short-term support break over the last two days. Chart 1 shows SMH forming a rising channel as it retraced 62% of the prior decline. The ETF hit resistance at...   READ MORE 

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DOW INDUSTRIALS AND TRANSPORTS EXCEED FEBRUARY HIGHS -- FINANCE SECTOR PERKS UP WITH A BREAKOUT -- GOLDMAN, STATE STREET AND HUNTINGTON CATCH A BID -- SHORT-TERM RATES HOLD SUPPORT AND MOVE HIGHER -- DOLLAR BOUNCES ALONG WITH INTEREST RATES

by John Murphy,

Chief Technical Analyst, StockCharts.com

DOW INDUSTRIALS AND TRANSPORTS EXCEED FEBRUARY HIGHS... Link for todays video. With the surge over the last two weeks, the Dow Industrials moved back above its February high to record a new 52-week high on Friday. Chart 1 shows the mid March reversal around 11600 establishing a key reaction...   READ MORE