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ALTERNATION SUGGESTS FLAT WAVE 4 FOR S&P 500 -- DEEPER CORRECTION TARGETS BROKEN RESISTANCE -- FINANCE HITS SUPPORT FROM RISING WEDGE TRENDLINE -- HOME-BUILDER AND HOME-CONSTRUCTION ETFS CONTINUE TO LAG -- MATERIALS SECTOR GOES THE WAY OF CHINESE STOCKS

by John Murphy,

Chief Technical Analyst, StockCharts.com

ALTERNATION SUGGESTS FLAT WAVE 4 FOR S&P 500... Link for todays video. The S&P 500 has a five wave advance working since the July low. Wave 1 extends from the July low to the early August high. Wave 2 extends down to the late August low....   READ MORE 

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GLOBAL STOCKS AND COMMODITIES BOUNCE OFF 50-DAY LINES -- BONDS, HOWEVER, REMAIN UNDER PRESSURE -- MUNIS HAVE BEEN HIT ESPECIALLY HARD AND SHOW THAT BONDS CAN LOSE MONEY -- FINANCIAL SPDR SUFFERS A MINOR SETBACK IN BOTTOMING FORMATION

by John Murphy,

Chief Technical Analyst, StockCharts.com

MUNIS TUMBLE... We've been showing the upward trend in bond yields since the Fed's latest QE2 package was announced last week. We've also shown the drop in bond prices, especially Treasury bonds and notes. The bond category that's been hit the hardest...   READ MORE 

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RETAIL SPDR REMAINS RELATIVELY STRONG WITH FALLING FLAG -- STOCKS CONTINUE TO FOLLOW THE EURO -- EURO STOXX 50 TESTS IMPORTANT SUPPORT LEVEL -- TREASURY YIELDS LEAD THE DOLLAR -- VIX CHALLENGES RESISTANCE WITH BIG SURGE

by John Murphy,

Chief Technical Analyst, StockCharts.com

RETAIL SPDR REMAINS RELATIVELY STRONG WITH FALLING FLAG... Link for todays video. The Retail SPDR (XRT) declined with the rest of the market over the prior six days, but bounced on Wednesday and shows relative strength overall. Chart 1 shows XRT breaking resistance with a gap above the October highs....   READ MORE 

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FALLING EURO PUSHES DOLLAR ABOVE 50-DAY AVERAGE -- DOLLAR INDEX BOUNCES OFF LONG-TERM SUPPORT -- COMMODITIES FALL TOWARD OCTOBER LOWS -- CHINA LEADS EMERGING MARKET RETREAT -- US STOCK INDEXES HEAD TOWARD TEST OF 50-DAY LINES

by John Murphy,

Chief Technical Analyst, StockCharts.com

FALLING EURO SUPPORTS DOLLAR UPTURN... Stocks and commodities are in retreat today and a lot of the reason has to do with trends in currency markets -- especially the Euro and the dollar. Chart 1 shows the Euro slipping below its 50-day moving average for the first time in two...   READ MORE 

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BOND ETF TESTS KEY SUPPORT LEVEL -- INFLATION-INDEXED BOND ETF BREAKS SUPPORT -- NET NEW HIGHS INDICATORS REMAIN IN BULL MODE

by John Murphy,

Chief Technical Analyst, StockCharts.com

BOND ETF TESTS KEY SUPPORT LEVEL... Link for todays video. The 7-10 year Bond ETF (IEF) is testing its October low with weakness on Monday. Chart 1 shows IEF hitting resistance around 100 twice since early October. A small double top is taking shape with support at 97.52, which...   READ MORE 

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FINANCIAL SPDR TRIES TO BOUNCE OFF BREAKOUT POINT -- MARKET INDEXES TEST INITIAL SUPPORT AT 20-DAY AVERAGES -- BOND YIELDS CONTINUE TO CLIMB WHICH MAY BE SUPPORTING DOLLAR

by John Murphy,

Chief Technical Analyst, StockCharts.com

FINANCIALS HOLDING SUPPORT... Financial stocks are leading a rally attempt on Monday. And it's coming at a good time for that sector. Chart 1 shows the Financials Sector SPDR (XLF) bouncing off chart support along its recent breakout point near 15.00. One of the rules of charting...   READ MORE 

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SPY FORMS BEARISH HARAMI AT RESISTANCE -- RUSSELL 2000 ETF TESTS GAP AND BREAKOUT -- GOLD AND COMMODITIES DECLINE SHARPLY AFTER EXTENDED RUNS -- DOLLAR BULLISH ETF CHALLENGES RESISTANCE -- DOLLAR AND EURO ARE CAPABLE OF BIG SWINGS

by John Murphy,

Chief Technical Analyst, StockCharts.com

SPY FORMS BEARISH HARAMI AT RESISTANCE... Link for todays video. With a weak open on Monday and decline throughout the week, the S&P 500 ETF (SPY) and the Dow Industrials SPDR (DIA) formed bearish harami patterns. These candlestick reversals form when the current candlestick body is inside the...   READ MORE 

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BROKEN RESISTANCE TURNS FIRST SUPPORT FOR XLB, XLK AND XLP -- MEDIUM-TERM BONDS TURN LOWER -- GERMAN STOCKS LEAD EUROPE -- IRISH AND GREEK INDICES STILL SHOW RELATIVE WEAKNESS -- SPANISH AND PORTUGUESE INDICES BACK OFF RESISTANCE

by John Murphy,

Chief Technical Analyst, StockCharts.com

BROKEN RESISTANCE TURNS FIRST SUPPORT FOR XLB, XLK AND XLP... Link for todays video. One of the basic tenets of technical analysis is that broken resistance turns into support. The inverse is also true. A resistance level represents an area of supply. A break above resistance signals that demand has...   READ MORE 

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FINANCIAL SECTOR FINALLY TURNS UP -- REGIONAL BANK AND BROKERAGE ISHARES BREAK OUT -- BANK LEADERS INCLUDE CITIGROUP, WELLS FARGO, AND US BANCORP -- GOLDMAN SACHS LEADS BROKERS HIGHER WHILE MORGAN STANLEY STRUGGLES WITH 200-DAY LINE

by John Murphy,

Chief Technical Analyst, StockCharts.com

FINANCIAL SPDR BREAKS OUT... Financial stocks have finally turned up. Chart 1 shows last Thursday's upside breakout in the Financials Sector SPDR (XLF) and on rising volume. In fact, financials went from the market's weakest to the strongest group for the week. The jump in financial...   READ MORE 

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RISING CHANNEL OFFERS YEAREND GOLD TARGET -- SILVER RECORDS MULTI-YEAR HIGH -- GOLD MINERS ETF SURGES ABOVE OCTOBER HIGHS -- JUNIOR GOLD MINERS ETF CONTINUE TO OUTPERFORM -- THE CURRENCY AFFECT ON FOREIGN INDEX ETFS

by John Murphy,

Chief Technical Analyst, StockCharts.com

RISING CHANNEL OFFERS YEAREND GOLD TARGET... Link for todays video. Gold continued its recent surge by moving above $1400 on Monday. Silver and platinum also moved higher. Gold hit an all time high on the Comex, while silver traded at a 30 year high. Precious metals remain hot as an...   READ MORE 

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OVERBOUGHT READINGS AND THE 2006-2007 ADVANCE -- CCI FOR S&P 500 SURGES TO HIGHEST LEVEL SINCE APRIL -- HEAD-AND-SHOULDERS TARGET FOR S&P 500 -- NIKKEI 225 GAPS UP TO FORM RIGHT SHOULDER -- POSITIVE CORRELATION BETWEEN NIKKEI AND 10-YEAR T-YIELD

by John Murphy,

Chief Technical Analyst, StockCharts.com

OVERBOUGHT READINGS AND THE 2006-2007 ADVANCE ... Link for todays video. The Commodity Channel Index (CCI) is a popular momentum oscillator that fluctuates above/below the zero line. Unlike RSI and the Stochastic Oscillator, CCI is not bound on the upside of the downside. Typically, a reading above +100 is considered...   READ MORE 

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CHIPS GO FROM LAGGARDS TO LEADERS AS SMH CLEARS APRIL HIGH -- AMAT AND INTEL CLEAR 200-DAY LINES -- FINANCIAL SPDR NEARS UPSIDE BREAKOUT -- METLIFE HITS THREE-MONTH HIGH -- TIPS AND JUNK BONDS BENEFIT FROM QE2

by John Murphy,

Chief Technical Analyst, StockCharts.com

SEMICONDUCTOR HOLDERS CLEAR APRIL HIGH ... The ability of any stock index or group to clear its April high is a sure sign of strength. In case you haven't noticed, the Semiconductor Holders are doing just that today. I point that out because, up until a couple of months...   READ MORE 

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GLOBAL STOCKS AND COMMODITIES SURGE ON FALLING DOLLAR -- LONG BOND AND DOLLAR ARE MAIN CASUALTIES OF QE2 -- FED ACTION IS FORCING INVESTORS TO SEEK HIGHER YIELDS WITH MORE RISK

by John Murphy,

Chief Technical Analyst, StockCharts.com

ANOTHER POSITIVE DOW THEORY SIGNAL ... With the US elections behind us, and the Fed giving the markets what they wanted yesterday, global markets are reacting very swiftly and in a positive manner. The US Dollar Index has fallen to the lowest level in two years and giving a big boost...   READ MORE 

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SLOW GRIND HIGHER CONTINUES FOR STOCKS -- BONDS SELL OFF AFTER FED ANNOUNCEMENT -- FINANCE SPDR BREAKS TRIANGLE RESISTANCE -- JP MORGAN AND MORGAN STANLEY BOUNCE -- HOMEBUILDERS ETF CHALLENGES RESISTANCE

by John Murphy,

Chief Technical Analyst, StockCharts.com

SLOW GRIND HIGHER CONTINUES FOR STOCKS... Link for todays video. The elections and the Fed policy statement have passed and the major indices have yet to be knocked out of their uptrends. Upside momentum has slowed, but we have yet to see any downside momentum, and certainly no support breaks....   READ MORE 

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FOUR-YEAR CYCLE BOTTOM WAS COMPLETED EARLY THIS YEAR AND FAVORS STOCKS -- BUT WATCH OUT FOR SHORT-TERM SETBACK AS STOCKS TEST APRIL HIGHS

by John Murphy,

Chief Technical Analyst, StockCharts.com

MIDTERM ELECTIONS ARE GOOD FOR STOCKS... One of the reasons that I started turning more positive on stocks over the summer was the fact that the four-year cycle was due to bottom this year. That and a positive turn in technical and intermarket trends. My September 2 message carried the...   READ MORE 

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ELLIOTT WAVE COUNTS FOR THE S&P 500 -- SPY UPTREND SLOWS NEAR RESISTANCE -- OIL FORMS BULL FLAG ABOVE RESISTANCE -- DOLLAR INDEX FORMS A PENNANT CONSOLIDATION

by John Murphy,

Chief Technical Analyst, StockCharts.com

ELLIOTT WAVE COUNTS FOR THE S&P 500... Link for todays video. The Elliott Wave count for the S&P 500 remains bullish overall. $SPX is currently in Wave 5 of a possible 5 wave advance that began in March 2009. The red numbers show this advance on...   READ MORE 

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UTILITIES AND FINANCE SECTORS LAG IN OCTOBER -- INDUSTRIALS SPDR HITS CHANNEL RESISTANCE -- VOLATILITY INDEX MOVES HIGHER EVEN AS STOCKS GAINS -- DETRENDING THE VIX TO IDENTIFY EXTREMES -- NON-CONFIRMATIONS IN NASDAQ AND NYSE BREADTH

by John Murphy,

Chief Technical Analyst, StockCharts.com

UTILITIES AND FINANCE LAG IN OCTOBER ... Link for todays video. The sector performance picture shows relative weakness in two interest-rate sensitive sectors. PerfChart 1 shows the relative performance for the nine sector SPDRs since September 30th. Keep in mind that this is not absolute performance. On an absolute basis, all...   READ MORE 

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USING BOLLINGER BANDS TO SPOT SUPPORT AND RESISTANCE LEVELS -- %B CAN ALSO BE USED TO SPOT OVERBOUGHT AND OVERSOLD CONDITIONS -- CURRENT READINGS SHOW THE MARKET TO BE IN AN UPTREND BUT OVEREXTENDED

by John Murphy,

Chief Technical Analyst, StockCharts.com

BAND SUPPORT AND RESISTANCE LEVELS... I recently applied Bollinger bands to one of the major stock indexes to show the current uptrend and, more importantly, to spot any downturn. I thought this would be a good time to explain this useful indicator more fully, and to show different ways that...   READ MORE 

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RUSSELL 2000 ETF STALLS WITH CHOPPY RANGE -- LONG-TERM RATES IGNORE QE2 AND CONTINUE MOVING HIGHER -- LONG BOND ETF BREAKS KEY SUPPORT LEVEL -- RISING RATES LIFT THE DOLLAR FOR 2ND DAY -- EUROSTOXX INDEX SHOWS RELATIVE WEAKNESS

by John Murphy,

Chief Technical Analyst, StockCharts.com

RUSSELL 2000 ETF STALLS WITH CHOPPY RANGE... Link for todays video. Since moving above 71 on October 13th, trading in the Russell 2000 ETF (IWM) has turned quite choppy with a trading range the last few weeks. Chart 1 shows IWM with a sharp advance from 59 to 71. The...   READ MORE 

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DOWNTRENDS IN DOLLAR AND BOND YIELDS ARE NEAR SUPPORT AND OVERSOLD -- THAT CALLS FOR SOME CAUTION -- SO DOES THE PRESENCE OF THE SPRING HIGHS IN DOW INDUSTRIALS AND TRANSPORTS

by John Murphy,

Chief Technical Analyst, StockCharts.com

DOLLAR TESTS 2009 LOW... The falling U.S. Dollar has been the driving force behind rising global stocks and commodities since the spring. And there's no convincing signs of any of those trends reversing (the 10- and 40-week moving averages for the dollar are still in bearish alignment)...   READ MORE 

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MATERIALS SECTOR LEADS WITH A 52-WEEK HIGH -- WEAK DOLLAR AND STRONG CHINA BOOSTS BASE METALS -- NETWORKING STOCKS POWER TECHS HIGHER -- CISCO AND TELLABS LEAD NETWORKING GROUP -- SEMICONDUCTOR HOLDRS CHALLENGES SUMMER HIGHS

by John Murphy,

Chief Technical Analyst, StockCharts.com

MATERIALS SECTOR LEADS WITH A 52-WEEK HIGH... Link for todays video. The Basic Materials SPDR (XLB) continues to show leadership with a move above its October high today. Chart 1 shows XLB meeting resistance around 34.5 the last two weeks and then surging above 35 to forge a 52-high....   READ MORE 

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DOW STALLS WITH HIGH VOLUME NEAR APRIL HIGH -- SMH BACKS OFF RESISTANCE AFTER CHANNEL BREAKOUT -- THREE OF THE FOUR OFFENSIVE SECTORS LEADING -- VOLATILITY INDICES MOVE INTO LONG-TERM SUPPORT ZONE -- NET NEW HIGHS TAKE A HIT, BUT REMAIN POSITIVE OVERALL

by John Murphy,

Chief Technical Analyst, StockCharts.com

DOW STALLS WITH HIGH VOLUME NEAR APRIL HIGH... With a surge from 10000 to 11200, the Dow is trading near its April highs and close to a 52-week high. However, the senior Average has started to stall with high volume. Chart 1 shows the Dow battling the 11100 area with...   READ MORE 

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REITS ARE GOOD DIVIDEND PLAY AND THE YEAR'S STRONGEST GROUP -- REIT LEADERS ARE EQUITY RESIDENTIAL, SIMON PROPERTY, AND VORNADO --

by John Murphy,

Chief Technical Analyst, StockCharts.com

DIVIDEND ISHARES HIT NEW HIGH... My September 28 message headlined: "Low Bond Yields Continue to Benefit Dividend-Paying Stocks" showed the DJ Dividend iShares outperforming the S&P 500 since April. That stronger trend continues. Chart 1 shows the DJ Dividend iShares (DVY) trading well above its April...   READ MORE 

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STOCKS REBOUND AFTER TUESDAY'S BIG LOSSES -- MATERIALS SECTOR SURGES ON DOLLAR WEAKNESS -- OIL AND GASOLINE ETFS BOUNCE OFF BROKEN RESISTANCE -- MAKE-OR-BREAK POINT FOR THE 20+ YEAR BOND ETF -- KEY BREADTH INDICATORS SHOW STRONGEST DOWN DAY SINCE AUGUST

by John Murphy,

Chief Technical Analyst, StockCharts.com

STOCKS REBOUND AFTER TUESDAYS BIG LOSSES... Link for todays video. What a difference a day makes. Stocks rebounded as the major index ETFs recaptured a large portion of yesterdays losses. Stocks were buoyed by strong results from Boeing and Delta Air Lines, two separate, but very much related businesses. Chart...   READ MORE 

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EURO TUMBLE CAUSES HEAVY PROFIT-TAKING IN COMMODITIES -- BANK OF AMERICA WEIGHS ON FINANCIAL STOCKS WHILE GOLDMAN SACHS TURNS UP -- OVERBOUGHT STOCKS PULL BACK ON RISING VOLUME AND MAY BE FORMING SHORT-TERM TOP

by John Murphy,

Chief Technical Analyst, StockCharts.com

COMMODITIES FALL WITH THE EURO... This morning's message showed the U.S. Dollar turning up from an oversold condition. When the dollar rallies, foreign currencies fall -- the most important being the Euro. Chart 1 shows the Euro Trust tumbling 1.7% today on rising volume. The Commodity...   READ MORE 

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BOUNCE IN OVERSOLD DOLLAR CAUSES PROFIT-TAKING IN STOCKS AND COMMODITIES -- GOLD TUMBLES -- STOCKS APPEAR DUE FOR SOME PROFIT-TAKING BUT REMAIN IN AN UPTREND

by John Murphy,

Chief Technical Analyst, StockCharts.com

DOLLAR RSI STARTS TO RISE... My October 7 message showed the 14-day RSI for the U.S. Dollar Index trading below 14 which put it in oversold territory. I also warned that a short-term positive divergence was being formed. That positive divergence was confirmed by today's RSI move...   READ MORE 

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IWM FORMS INSIDE DAY IN OVERBOUGHT TERRITORY -- FINANCE SECTOR BOUNCES OFF CONSOLIDATION SUPPORT BROKER-DEALER ETF LEAD FINANCE WITH RESISTANCE CHALLENGE -- SCHWAB AND CME BREAK OUT AS GOLDMAN CHALLENGES RESISTANCE -- OIL AND GASOLINE ETFS FORM BULL FLAGS

by John Murphy,

Chief Technical Analyst, StockCharts.com

IWM FORMS INSIDE DAY IN OVERBOUGHT TERRITORY... Link for todays video. The Russell 2000 ETF (IWM) is up around 20% in the last eight weeks and overbought by most measures. Even though the trend since early September remains up, the odds of a correction or a pullback increase with each...   READ MORE 

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MCCLELLAN SUMMATION INDICES CONTINUE TO CAPTURE CURRENT RALLY -- INFLATIONARY PRESSURES BUILDING AS TIPS AND GOLD SURGE -- SHORT-TERM RATES HIT NEW LOWS AS LONG-TERM RATES FIRM -- DOLLAR COULD BENEFIT FROM RISE IN LONG-TERM RATES

by John Murphy,

Chief Technical Analyst, StockCharts.com

MCCLELLAN SUMMATION INDICES CONTINUE TO CAPTURE CURRENT RALLY... Link for todays video. Even though stocks are overextended after a massive seven week run, we have yet to seen any evidence of weakness to signal the start of a correction or pullback. Many momentum oscillators are also at or near overbought...   READ MORE 

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TRANSPORTATION ISHARES TEST SPRING HIGH -- - RAILS HAVE BEEN THE MAIN DRIVER OWING TO STRONG COMMODITY DEMAND -- UNION PACIFIC HITS NEW RECORD -- MOVE INTO TIPS SHOWS MORE INFLATION CONCERN -- NEW SUPPORT LEVEL FOR GLD AND GDX

by John Murphy,

Chief Technical Analyst, StockCharts.com

TRANSPORTATION ISHARES REACH MAY HIGH... Previous messages showed the upside breakout in the Dow Transports (over their summer high) which confirmed a previous upside breakout in the Dow Industrials and constituted a Dow Theory buy signal (see circle). Both Dow averages are approaching another test at their spring highs. Needless...   READ MORE 

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DOW SPDR RECORDS 52-WEEK HIGH -- RSI FOR QQQQ REMAINS IN BULL MODE -- XLF CHALLENGES SUMMER HIGHS YET AGAIN -- REGIONAL BANKS OUTPERFORMING BIG BANKS -- RAILS AND TRUCKERS LEAD BIG MOVE IN DOW TRANSPORTS -- ENERGY AND OIL SERVICE ETFS OUTPERFORMING OIL

by John Murphy,

Chief Technical Analyst, StockCharts.com

DOW AND NASDAQ 100 ETFS RECORD 52-WEEK HIGHS... Link for todays video. With another broad market advance on Wednesday, the Dow Industrials SPDR (DIA) and the Nasdaq 100 ETF (QQQQ) became the first of the major index ETFs to clear their April highs. The S&P 500 ETF (SPY)...   READ MORE 

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AGRICULTURAL STOCKS SURGE WITH GRAIN PRICES -- MARKET VECTORS AGRIBUSINESS ETF HITS 52-WEEK HIGH -- LEADERS INCLUDE INTREPID POTASH, DEERE, MOSAIC, AGRIUM, CF INDUSTRIES, AGCO, AND CORN PRODUCTS -- GOLD CONSOLIDATES WITHIN UPTREND

by John Murphy,

Chief Technical Analyst, StockCharts.com

FALLING DOLLAR ALSO HELPS GRAIN MARKETS ... We've explained several times that the summer peak in the U.S. Dollar was bullish for commodity markets. The June peak in the Dollar helped launch a rally in the CRB Index which has just touched the highest level in two years....   READ MORE 

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DOW SPDR AND NASDAQ 100 ETF NEAR APRIL HIGHS -- SHORT-TERM TREASURY YIELDS HIT NEW LOWS -- CORN AND SOYBEANS LIFT AGRICULTURE ETF TO 52-WEEK HIGH -- AG RELATED STOCKS SURGE -- SHANGHAI COMPOSITE BREAKS RESISTANCE

by John Murphy,

Chief Technical Analyst, StockCharts.com

DOW INDUSTRIALS SPDR AND NASDAQ 100 ETF NEAR APRIL HIGHS... Link for todays video. The uptrends remains in place for the major index ETFs, but the Dow Industrials SPDR (DIA) and the Nasdaq 100 ETF (QQQQ) are nearing resistance from their April highs. After closing up five of the last...   READ MORE 

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OVERSOLD DOLLAR BOUNCES -- WHILE OVERBOUGHT GOLD REVERSES DOWN IN HEAVY TRADING -- MARKET VECTORS GOLD MINERS INDEX FAILS TO HOLD TUESDAY'S BREAKOUT -- S&P 500 REMAINS WELL ABOVE INITIAL CHART SUPPORT

by John Murphy,

Chief Technical Analyst, StockCharts.com

OVERSOLD DOLLAR BOUNCES... The steep drop in the U.S. Dollar over the past two months has resulted in the inevitable oversold condition. One of the best illustrators of that oversold condition is the 14-day RSI which is the green line in chart 1. An oversold reading exists when the...   READ MORE 

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QQQQ SHOWS RELATIVE WEAKNESS WITH BREAKOUT SHORTFALL -- NETWORKING AND INTERNET GROUPS WEIGH ON TECH SECTOR -- ORACLE AND CISCO BREAK CONSOLIDATION RESISTANCE -- XLF STALLS NEAR RIGHT SHOULDER RESISTANCE -- REGIONAL BANK SPDR BREAKS WEDGE RESISTANCE

by John Murphy,

Chief Technical Analyst, StockCharts.com

QQQQ SHOWS RELATIVE WEAKNESS WITH SHORTFALL... Link for todays video. Big techs are showing relative weakness this week as the Nasdaq 100 ETF (QQQQ) lags other major index ETFs. The Dow SPDR, S&P 500 SPDR and Russell 2000 ETF all broke above their September highs on Tuesday, but...   READ MORE 

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ENERGY LEADERS FAVOR LARGE CAPS -- BIG LEADERS INCLUDE CVX, COP, AND HAL -- COAL ETF HAS BEEN STRONGEST PART OF ENERGY PATCH -- COAL LEADERS ARE PEABODY, JOY GLOBAL, AND BUCYRUS -- TODAY'S TRANSPORTATION BREAKOUT LOOKS MORE CONVINCING

by John Murphy,

Chief Technical Analyst, StockCharts.com

BIGGER IS BETTER IN THE OIL PATCH... This morning's message showed the upside breakout in the Energy SPDR (XLE) which is one of the day's strongest groups. [Arthur Hill described the initial bullish breakout in the XLE last week and correctly forecast higher energy prices]. I...   READ MORE 

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GLOBAL STOCKS AND COMMODITIES JUMP ON FALLING DOLLAR -- MATERIALS AND ENERGY ARE DAY'S STRONGEST STOCKS -- GDX TRADES AT RECORD HIGH -- XLE BUILDS ON BULLISH BREAKOUT

by John Murphy,

Chief Technical Analyst, StockCharts.com

STOCK INDEXES BOUNCE OFF CHART SUPPORT... Global stocks and commodities are off to a strong start today. U.S. stocks are following the lead of rising foreign shares. Today could be an important day for U.S. stocks if the market can hold and build onto this morning's...   READ MORE 

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STOCHRSI TURNS BEARISH FOR THE NASDAQ -- RUSSELL 2000 BATTLES RESISTANCE BREAK -- FINANCE SPDR FORMS PENNANT AFTER SHARP DECLINE -- REGIONAL BANK SPDR STALLS NEAR CONSOLIDATION RESISTANCE -- ABC CORRECTIONS FOR THE XLI, XLY AND $TRAN

by John Murphy,

Chief Technical Analyst, StockCharts.com

STOCHRSI TURNS SHORT-TERM BEARISH FOR THE NASDAQ ... A correction or consolidation period could be in store as the Nasdaq comes off overbought conditions in September. Chart 1 shows the Nasdaq surging around 13% in September and breaking above its summer high. With a 1.11% decline today, the index is...   READ MORE 

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QQQQ, SPY AND XLY FORM SMALL CONSOLIDATION PATTERNS -- SHANGHAI SURGES OFF SUPPORT AS NIKKEI CORRECTS -- DOLLAR BREAKS LONG-TERM SUPPORT ON QE2 -- GOLD, SILVER AND PLATINUM AS DOLLAR ALTERNATIVES -- OIL AND GASOLINE BREAK RESISTANCE

by John Murphy,

Chief Technical Analyst, StockCharts.com

QQQQ, SPY AND XLY FORM SMALL CONSOLIDATION PATTERNS ... Link for todays video. With stocks trading flat the entire week, consolidation patterns formed in a number of key ETFs. Chart 1 shows the Nasdaq 100 ETF (QQQQ) surging above its summer highs and then consolidating around 49 this week. QQQQ gapped...   READ MORE 

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STOCKS STALL AFTER BREAKOUTS -- NASDAQ HOLDS ABOVE RESISTANCE BREAK OUT -- BANKING AND HOUSING ETFS COULD HOLD THE KEY -- OIL SURGES OVER 2% TO CHALLENGE RESISTANCE -- ENERGY SPDR CHALLENGES SUMMER HIGHS -- OIL AND GAS E&P ETF BREAKS FLAG RESISTANCE

by John Murphy,

Chief Technical Analyst, StockCharts.com

STOCKS STALL, BUT NO SIGNS OF WEAKNESS YET... Link for todays video. Stocks finished mixed on Wednesday with large-caps edging lower, small-caps edging higher and the Nasdaqs finishing fractionally lower. Chart 1 shows the NY Composite ($NYA) stalling around 7300 on Wednesday. The overall trend is clearly up with a...   READ MORE 

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STRONG CLOSE ON RISING VOLUME IS SIGN OF STOCK STRENGTH -- SMALL CAPS BREAK OUT -- AIRLINES AND RAILS LEAD TRANSPORTS HIGHER -- MARKET VECTORS GOLD MINING ETF NEARS NEW RECORD -- STAPLES AND HEALTHCARE LEAD DIVIDEND ISHARES HIGHER

by John Murphy,

Chief Technical Analyst, StockCharts.com

NYSE COMPOSITE INDEX RESUMES UPTREND ON RISING VOLUME -- SMALL CAPS BREAK OUT... After opening lower this morning, stocks turned in a positive chart day. All of the major stock indexes closed at or near new recovery highs. And they did so on rising volume, which is a healthy combination....   READ MORE