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LOW BOND YIELDS CONTINUE TO BENEFIT DIVIDEND-PAYING STOCKS -- TELECOM AND UTILITIES HAVE BEEN MARKET LEADERS -- DJ DIVIDEND ISHARES CONTINUE TO OUTPERFORM -- COCA COLA HITS 52-WEEK HIGH -- PHARMA HOLDERS LEAD HEALTHCARE SECTOR HIGHER

by John Murphy,

Chief Technical Analyst, StockCharts.com

HIGH YIELDING GROUPS ARE MARKET LEADERS... With US rates at or near record lows, investors have been favoring stock groups that pay dividends in excess of bond yields. I addressed this issue on August 12 with a message headlined: "Dividend Paying Stocks Like Utilities and Telecom Do Better in...   READ MORE 

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FINANCIALS LEAD LATE SELLOFF IN STOCKS -- LONG BOND ETF HOLDS BREAKOUT WITH BIG GAIN -- USING DOW JONES INDICES TO FOLLOW THE WORLD -- GERMANY AND FRANCE INDICES BATTLE RESISTANCE -- GREECE AND IRELAND LAG THE REST OF EUROPE

by John Murphy,

Chief Technical Analyst, StockCharts.com

FINANCIALS LEAD LATE SELL-OFF IN STOCKS... Link for todays video. After bouncing around most of the day Monday, stocks were hit with selling pressure in the final hour and the S&P 500 closed near its lows for the day. Chart 1 shows the S&P 500 edging...   READ MORE 

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DOLLAR WEAKNESS CONTRIBUTES TO CRB BREAKOUT -- SMALL CAPS AND TRANSPORTS APPEAR SET TO BREAK OUT NEXT WEEK -- S&P 500 BOUNCES IMPRESSIVELY OFF H&S NECKLINE -- MORE BULLISH WEEKLY SIGNS

by John Murphy,

Chief Technical Analyst, StockCharts.com

CRB INDEX HITS EIGHT-MONTH HIGH... I wrote on Thursday that a falling US Dollar Index was bullish for commodities (and stocks tied to commodities). Chart 1 shows the USD hitting another eight-month low on Friday. Right on cue, the CRB Commodity Index broke out to a new eight-month high on...   READ MORE 

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NASDAQ HOLDS BREAKOUT AS RESISTANCE TURNS SUPPORT -- NECKLINE RESISTANCE TURNS SUPPORT FOR S&P 500 -- RETAILERS SHOW RELATIVE STRENGTH THROUGHOUT SEPTEMBER -- SEMIS SPRING TO LIFE AND LEAD MARKET HIGHER -- NET NEW HIGHS REACH HIGHEST LEVEL SINCE APRIL

by John Murphy,

Chief Technical Analyst, StockCharts.com

NASDAQ HOLDS BREAKOUT AS RESISTANCE TURNS SUPPORT... Link for todays video. The Nasdaq broke above its July-August highs with the September surge and broken resistance turned into support this week. After breaking resistance around 2300, chart 1 shows the index pulling back mid week and then surging on Friday. Broken...   READ MORE 

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NO DOW THEORY BUY SIGNAL YET -- TRANSPORTS HAVEN'T CLEARED AUGUST HIGH -- SMALL CAPS HAVEN'T BROKEN OUT EITHER -- S&P 500 RETESTS NECKLINE SUPPORT -- FALLING US RATES HURT DOLLAR

by John Murphy,

Chief Technical Analyst, StockCharts.com

DOW TRANSPORTS HAVEN'T BROKEN... A lot has been written about the recent upside breakout in several market indexes. Unfortunately, the upside breakout took place on relatively light volume and hasn't shown much follow-through. I suspect that part of the reason for the lack of bullish follow-through...   READ MORE 

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SEMIS CONTINUE TO LAG BROADER MARKET -- DOLLAR AND GOLD DECOUPLE AS DOLLAR PLUNGES -- DOLLAR MOVES TO OVERSOLD LEVELS WITH SHARP DECLINE -- OIL WEAKENS EVEN AS DOLLAR FALLS -- LONG BOND ETF BREAKS SHORT-TERM RESISTANCE

by John Murphy,

Chief Technical Analyst, StockCharts.com

SEMIS CONTINUE TO LAG BROADER MARKET... Link for todays video. The Semiconductor HOLDRS (SMH) stands out as a clear laggard over the last few months. Most broad market indices moved above their summer highs, but SMH did not even come close. In addition, note that the Networking iShares (IGN), the...   READ MORE 

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SPY BREAKS ABOVE NECKLINE RESISTANCE -- BEARS MAY SEE AN ABC CORRECTION UNFOLDING -- IWM CHALLENGES DOUBLE BOTTOM RESISTANCE -- FINANCE AND SMALL-CAPS LEAD THE CHARGE -- SHANGHAI COMPOSITE LAGS IN SEPTEMBER -- HOMEBUILDERS SPDR FORMS BULL FLAG

by John Murphy,

Chief Technical Analyst, StockCharts.com

SPY BREAKS ABOVE NECKLINE RESISTANCE... Link for todays video. There are some classic chart patterns at work in the major index ETFs. First, the S&P 500 ETF (SPY) has an inverse head-and-shoulders pattern that is being confirmed with todays advance. This pattern is also present in the Nasdaq...   READ MORE 

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OFFENSIVE SECTORS LEAD SEPTEMBER SURGE -- XLY STILL OUTPERFORMING THE MARKET -- XLF FALLS SHORT OF RESISTANCE -- XLI FORMS LARGE RISING WEDGE -- XLK SHOWS SERIOUS RELATIVE STRENGTH THIS WEEK -- NYSE PERCENT ABOVE 200-DAY HITS RESISTANCE

by John Murphy,

Chief Technical Analyst, StockCharts.com

OFFENSIVE SECTORS LEAD SEPTEMBER SURGE... Link for todays video. Leadership from the four key offensive sectors makes the September surge all the more impressive. Consumer discretionary, finance, technology and industrials are considered the offensive sectors. Leadership from at least 2 of the 4 is needed for a rally to have...   READ MORE 

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BASIC MATERIALS LEAD MARKET RALLY ON WEAKER DOLLAR AND STRONGER COMMODITIES -- FREEPORT MCMORAN COPPER & GOLD TRACKS RISING COPPER PRICE -- MARKET INDEXES TEST AUGUST HIGH AS WEEKLY MACD LINES TURN POSITIVE

by John Murphy,

Chief Technical Analyst, StockCharts.com

BASIC MATERIALS LEAD MARKET RALLY... I wrote on Tuesday that strength in foreign currencies (especially commodity currencies like the Aussie and Canadian Dollars) was negative for the U.S. Dollar but positive for most commodities. One reason for that view is that stronger foreign currencies suggest growing confidence in the...   READ MORE 

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SMALL-CAPS AND TECHS LEAD MARKET HIGHER -- HEALTHCARE SPDR EXCEEDS SUMMER HIGHS -- AMGEN, J&J AND PFIZER PROPEL HEALTHCARE HIGHER -- RISK-ON TRADE RULES WITH RISING EURO -- BONDS TEST SUPPORT WITH SEPTEMBER DOWNSWING

by John Murphy,

Chief Technical Analyst, StockCharts.com

SMALL-CAPS AND TECHS LEAD MARKET HIGHER... Link for todays video. Buying pressure continued on Wednesday with the Russell 2000 ETF (IWM) and the Nasdaq 100 ETF (QQQQ) leading the major indices higher. John Murphy wrote about the S&P 500 testing neckline resistance yesterday. Today, the Nasdaq 100 ETF...   READ MORE 

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FOREIGN SHARES HAVE ALREADY EXCEEDED SUMMER HIGHS AND ARE PULLING US STOCKS HIGHER -- EMERGING MARKETS ARE EVEN STRONGER LED BY INDIA, BRAZIL, AND CHINA -- AUSSIE DOLLAR HITS 52-WEEK HIGH -- NASDAQ 100 CLEARS AUGUST HIGH

by John Murphy,

Chief Technical Analyst, StockCharts.com

FOREIGN STOCKS LEAD US HIGHER... One of the reasons I've turned more bullish on the U.S. stock market is the relatively strong performance in foreign shares. Look at Chart 1 which compares EAFE Index iShares (red line) to the S&P 500 (green line) over the...   READ MORE 

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GOLD HITS RECORD HIGH -- SILVER IS VERY CLOSE TO DOING THE SAME -- GOLD MINERS ETF BREAKS OUT -- SILVER STOCKS PLAY CATCHUP -- SEVERAL GOLD STOCKS STILL PRESENT VALUE -- RISING SILVER/GOLD RATIO IS GOOD FOR STOCK MARKET

by John Murphy,

Chief Technical Analyst, StockCharts.com

PRECIOUS METAL BREAKOUTS ... I've devoted the last two Tuesday's to bullish articles on precious metals. This Tuesday is no exception. That's because precious metal assets are surging through important resistance barriers today to achieve bullish breakouts. Chart 1 shows the Gold Trust Shares (GLD)...   READ MORE 

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QQQQ AND SPY SURGE INTO RESISTANCE -- SMALL-CAPS AND NASDAQ START SHOWING LEADERSHIP -- FINANCE SECTOR LEADS THE CHARGE -- JPM, GS AND MS SURGE TOWARDS RESISTANCE -- SEMIS BATTLE BROKEN SUPPORT ZONE -- AMKR AND XLNX SURGE OFF SUPPORT

by John Murphy,

Chief Technical Analyst, StockCharts.com

QQQQ AND SPY SURGE INTO RESISTANCE... Link for todays video. Chart 1 shows the Nasdaq 100 ETF (QQQQ) gapping higher on Monday and moving into a resistance zone from the June-August highs. With todays advance, the ETF is up around 3.5% from its August closing lows. Also notice that...   READ MORE 

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S&P 500 GRAVITATES TOWARDS RANGE RESISTANCE -- STOCKS AND METALS SHINE WITH RISK-ON TRADE -- INDUSTRIAL METALS INDEX EXCEEDS AUGUST HIGH -- SHANGHAI INDEX TRACES OUT ASCENDING TRIANGLE -- OIL BOUNCES OFF CONSOLIDATION SUPPORT

by John Murphy,

Chief Technical Analyst, StockCharts.com

S&P 500 GRAVITATES TOWARDS RANGE RESISTANCE... Link for todays video. The markets continue to move from risk-on to risk-off market modes over the last few months. Swings in the stock market appear to be a major factor in these mood swings. Chart 1 shows the S&P...   READ MORE 

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S&P 500 NEEDS MORE VOLUME TO CLEAR OVERHEAD RESISTANCE -- BOND YIELDS ARE STILL IN DOWNTREND BUT LOOK OVERSOLD -- THAT COULD LEAD TO HIGHER YIELDS -- BOND FUND TESTS SUPPORT LINE

by John Murphy,

Chief Technical Analyst, StockCharts.com

S&P 500 MOVES UP TO CHALLENGE 200-DAY LINE... My message from last Thursday described a potential "head and shoulders" bottom forming in the S&P 500 with the August low looking like a "right shoulder". That potentially bullish pattern suggests that the market...   READ MORE 

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IWM HITS RESISTANCE AND STALLS -- SETTING FIRST SUPPORT LEVELS FOR DIA AND QQQQ -- SEMIS BATTLE NEW RESISTANCE ZONE -- INTC AND AMAT SHOW RELATIVE WEAKNESS -- AMTL AND CY SHOWS RELATIVE STRENGTH -- EURO UNDER PRESSURE AS SOVEREIGN DEBT ISSUES RETURN

by John Murphy,

Chief Technical Analyst, StockCharts.com

IWM HITS RESISTANCE AND STALLS ... Link for todays video. Despite leading the market lower the last few months, small-caps led the market higher over the last two weeks. However, chart 1 shows the Russell 2000 ETF (IWM) running into resistance around 64 over the last few days. Resistance in this...   READ MORE 

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SILVER LEADS TEST OF 2010 HIGHS AND IS STARTING TO OUTPERFORM GOLD -- THAT MAY GIVE A BOOST TO SILVER STOCKS LIKE CDE, HL, AND PAAS -- NEWMONT MINING NEARS RECORD HIGH IN GOLD GROUP -- MARKET VECTORS GOLD INDEX NEARS UPSIDE BREAKOUT

by John Murphy,

Chief Technical Analyst, StockCharts.com

SILVER LEADS TEST OF 2010 HIGHS... I wrote a bullish message on precious metal assets last Tuesday which showed gold and silver prices nearing test of their 2010 high. That test has come a bit sooner for silver. Chart 1 shows Gold Trust Shares moving closer to its June high...   READ MORE 

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YIELDS RISE AND BONDS FALL ON JOBS REPORT -- SMALL-CAPS START SHOWING RELATIVE STRENGTH -- UTILITIES UNDER PRESSURE AS RATES SURGE -- XLB AND XLY ARE ALREADY CHALLENGING SUMMER HIGHS -- SPY AND DIA HOLD WEDGE BREAKOUTS

by John Murphy,

Chief Technical Analyst, StockCharts.com

YIELDS RISE AND BONDS FALL ON JOBS REPORT... Link for todays video. A better-than-expected employment report combined with positive revisions to July weighed on bonds. Bonds surged in August as the double-dippers took center stage. Sign of weakness in the economy favor lower interest rates and lose monetary policy. Todays...   READ MORE 

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WITH FOUR-YEAR CYCLE BOTTOM DUE IN SECOND HALF OF YEAR, IT MIGHT NOT BE TOO SOON TO START REALLOCATING SOME FUNDS OUT OF BONDS AND INTO STOCKS -- SO IS THE FACT THAT A HEAD AND SHOULDERS BOTTOM MAY BE FORMING IN THE S&P 500

by John Murphy,

Chief Technical Analyst, StockCharts.com

IS A HEAD AND SHOULDERS BOTTOM FORMING IN STOCK?... Today's message is going to represent a shift in emphasis in favor of stocks. As you know, I've been writing since the spring about the huge move into bonds and out of stocks owing to fears of...   READ MORE 

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DIA AND QQQQ FILL THEIR GAPS WITH BREAKOUTS -- OFFENSIVE SECTORS GAP AND SURGE HIGHER -- EURO SURGES AS RISK-ON TRADE RESURFACES -- BONDS DECLINE AS MONEY FLEES SAFETY -- SHANGHAI COMPOSITE SHOWS RELATIVE STRENGTH -- EUROPEAN INDICES SURGE OVER 2%

by John Murphy,

Chief Technical Analyst, StockCharts.com

DIA AND QQQQ FILL THEIR GAPS WITH BREAKOUTS... Link for todays video. Stocks moved sharply higher on Wednesday with a broad advance that lifted most boats. All major indices were up sharply. All sectors were higher with the biggest gains coming from industrials, energy, finance and consumer discretionary. Chart 1...   READ MORE 

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GOLD AND SILVER PRICES CONTINUE TO RALLY -- MARKET VECTORS GOLD MINERS INDEX MAY BE NEARING MAJOR BULLISH BREAKOUT -- BARRICK GOLD NEARS 52-WEEK HIGH-- GOLD SHARES ARE STARTING TO OUTPACE BULLION

by John Murphy,

Chief Technical Analyst, StockCharts.com

GOLD AND SILVER ETFS CONTINUE TO RISE... With stocks and most commodities on the defensive, money continues to move into precious metal assets. As a result, gold and silver prices are higher again today. Chart 1 shows the Gold Trust Shares (GLD) approaching a test of their summer highs. Chart...   READ MORE 

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SMALL-CAPS LEAD MARKET LOWER -- GAPS MARK RESISTANCE FOR QQQQ, SPY AND DIA -- FINANCIALS CONTINUE TO WEIGH OVERALL -- SEMIS BUILD ON SUPPORT BREAK -- RETAILERS DRAG DOWN CONSUMER DISCRETIONARY SECTOR

by John Murphy,

Chief Technical Analyst, StockCharts.com

SMALL-CAPS LEAD MARKET LOWER... Link for todays video. Stocks moved broadly lower on Monday with small-caps leading the way. The Dow fell around 141 points to test the 10,000 mark at the close (-1.4%). The S&P 500 and Nasdaq were both down around 1.5%. The...   READ MORE 

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RUSSELL 2000 ETF TESTS JULY LOW -- A LARGE HEAD-AND-SHOULDERS FOR XLF -- FALLING CHANNEL TARGET FOR XLY -- INTERNET ETFS HOVERING JUST ABOVE IMPORTANT SUPPORT -- NASDAQ AD LINE BREAKS JULY LOW -- NYSE NET NEW HIGHS DIP INTO NEGATIVE TERRITORY

by John Murphy,

Chief Technical Analyst, StockCharts.com

RUSSELL 2000 ETF TESTS JULY LOW ... Link for todays video. The Russell 2000 ETF (IWM) is the first of the major index ETFs to test its July low. We have been talking about relative weakness in small-caps and this is just further evidence. The Dow SPDR (DIA) and S&...   READ MORE 

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RISING YEN HURTS JAPANESE MARKET -- RISING YEN MAY ALSO BE ADDING TO GLOBAL DEFLATION PRESSURE

by John Murphy,

Chief Technical Analyst, StockCharts.com

RISING YEN PUSHES NIKKEI TO NEW LOW... A rising Japanese yen is normally bad for Japanese stocks. Chart 1 demonstrate their inverse relationship. It shows the the Nikkei 225 (orange line) falling below 9000 for the first time in more than year which makes it the weakest of the world&...   READ MORE 

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EXPANDING ON THE RISK-ON RISK-OFF TRADE -- WHAT ARE BONDS TELLING THE MARKET? -- OIL AND GASOLINE POINT TO WEAK DEMAND -- BASE METALS ETF BACKS OFF RETRACEMENT RESISTANCE -- SILVER BREAKS TRIANGLE RESISTANCE

by John Murphy,

Chief Technical Analyst, StockCharts.com

EXPANDING ON THE RISK-ON RISK-OFF TRADE... Link for todays video. John Murphy and I have been writing a lot on the movement away from risk in favor of relative safety. I showed a PerfChart on August 6th showing the beginnings of a shift from the risk-on trade to risk-off trade....   READ MORE 

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NEGATIVE DOW THEORY TRENDS -- TRANSPORTS LEAD INDUSTRIALS LOWER AS BOTH NEAR DOW THEORY SELL SIGNAL -- UTILITIES OUTPERFORM INDUSTRIALS AND TRANSPORTS WHICH IS ANOTHER SIGN OF WEAKNESS

by John Murphy,

Chief Technical Analyst, StockCharts.com

TRANSPORTS LEAD INDUSTRALS LOWER ... We've been writing about a lot of negative stock market signals of late which include bearish chart action, as well as recent rotations out of small caps and technology and into traditionally defensive groups (that pay dividends). This morning's message will focus...   READ MORE 

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A BEARISH ABC COUNT FOR THE S&P 500 -- DEFINING THE CURRENT DOWNSWING -- DEFENSIVE SECTORS SHOW RELATIVE STRENGTH -- HEALTHCARE, UTILITIES AND CONSUMER STAPLES EDGE HIGHER -- FINANCE SECTOR CONTINUES TO LEAD LOWER

by John Murphy,

Chief Technical Analyst, StockCharts.com

A BEARISH ABC COUNT FOR THE S&P 500 ... Link for todays video. It is time to open Pandoras box with some Elliott Wave analysis of the S&P 500. To smooth the data and filter out the noise, I am using a 5-day exponential moving average for...   READ MORE 

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QQQQ REMAINS ON P&F SELL SIGNAL -- SPY FAILS AT P&F RESISTANCE -- IWM TESTS P&F SUPPORT -- PERIPHERAL EUROPEAN INDICES LEADING THE WAY LOWER -- CORE EUROPEAN INDICES FAIL AT RESISTANCE -- EURO WEIGHS ON MARKETS WITH SHARP DECLINE

by John Murphy,

Chief Technical Analyst, StockCharts.com

QQQQ REMAINS ON P&F SELL SIGNAL... Link for todays video. The Nasdaq 100 ETF (QQQQ), S&P 500 ETF (SPY) and Russell 2000 ETF (IWM) capture three important market segments. QQQQ captures technology, IWM reflects the performance of small-caps. SPY covers large-caps and the broader market). As...   READ MORE 

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S&P 500 STILL ON SHORT-TERM SELL SIGNAL -- SMALL CAPS AND NASDAQ ARE LEADING MARKET LOWER -- SO IS THE SEMICONDUCTOR INDEX -- FALLING BOND YIELDS CONTINUE TO PULL STOCKS AND MOST COMMODITIES (EXCEPT FOR GOLD) LOWER

by John Murphy,

Chief Technical Analyst, StockCharts.com

S&P 500 STILL ON SHORT-TERM SELL SIGNAL ... The last chart I showed on Tuesday was an hourly bar chart of the S&P 500 with Fibonacci lines drawn over the price. The point of the chart was to show where overhead resistance was likely to appear. [That&...   READ MORE 

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ISLAND REVERSALS VIE FOR SHORT-TERM TREND -- HEAD-AND-SHOULDERS PATTERN REMAINS FOR LONG-TERM -- GOLD EXTENDS AUGUST SURGE AS SILVER HITS RESISTANCE -- GOLD:SILVER RATIO MOVING INVERSE TO STOCKS -- A TWIST ON FOSBACKS HIGH LOW LOGIC INDEX

by John Murphy,

Chief Technical Analyst, StockCharts.com

ISLAND REVERSALS VIE FOR SHORT-TERM TREND IN SPY... Link for todays video. Even though the month is barely half over, August is full of gaps. Chart 1 shows August starting with a big gap up as the S&P 500 ETF (SPY) surged above 112 to start the month....   READ MORE 

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DIVIDEND ISHARES OFFER DEFENSIVE PROTECTION -- DVY LEADERS INCLUDE ENTERGY, CENTURYLINK, MCDONALDS, KIMBERLY CLARK, AND CLOROX -- GOLD LEADERS ARE ELDORADO AND IAMGOLD

by John Murphy,

Chief Technical Analyst, StockCharts.com

SELECT DIVIDEND ISHARES SHOW RELATIVE STRENGTH... My last message suggested that dividend paying stocks (especially telecom and utilities) offered defensive protection in a slowing economy with falling interest rates. The DJ Select Dividend Index Fund (DVY) offers a simple way to take advantage of that dividend benefit. Chart 1 shows...   READ MORE 

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SEMICONDUCTORS HOLDRS TESTS RANGE SUPPORT -- ADI, INTC AND TXN TESTS AS WELL -- BOND ADVANCE LOOKS PARABOLIC -- OIL AND GASOLINE ETFS FORM BEARISH WEDGE -- STRONG YEN HURTS JAPANESE EQUITIES -- LOST DECADE FOR US AND JAPAN -- TSAR OF THE EMERGING MARKETS

by John Murphy,

Chief Technical Analyst, StockCharts.com

SEMICONDUCTORS HOLDRS TESTS RANGE SUPPORT... Link for todays video. The Semiconductors HOLDRS (SMH) defines the current state of unusual uncertainty in the stock market. Chart 1 shows SMH locked in a volatile trading range since early May. From low to high or high to low, the ETF has moved 10%...   READ MORE 

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GOLD AND EURO RESUME NEGATIVE CORRELATION -- GOLD BREAKS WEDGE RESISTANCE -- TECHS AND SMALL-CAPS UNDERPERFORMING BROADER MARKET -- NDX PERCENT ABOVE 200-DAY SMA BREAKS 50% -- S&P 500 PERCENT ABOVE 50-DAY SMA BREAKS 50%

by John Murphy,

Chief Technical Analyst, StockCharts.com

GOLD AND EURO RESUME NEGATIVE CORRELATION... Link for todays video. For the most part, Gold and the Euro have been negatively correlated throughout 2010. Negative correlation means one rises when the other one falls and visa versa. Positive correlation means both rise or fall together. Chart 1 shows the Gold...   READ MORE 

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DIVIDEND PAYING STOCKS LIKE UTILITIES AND TELECOM DO BETTER IN A DEFLATIONARY CLIMATE -- AT&T AND VERIZON LEAD TELECOM HOLDERS HIGHER -- GOLD NEARS UPSIDE BREAKOUT -- STOCKS ON SHORT-TERM SELL AS VIX TESTS OVERHEAD RESISTANCE

by John Murphy,

Chief Technical Analyst, StockCharts.com

STOCK DIVIDENDS ARE MORE ATTRACTIVE WHEN RATES TUMBLE ... I've read a lot of articles recently about which asset classes (or stock groups) do best in a deflationary environment. In past market messages (which warned of the deflationary threat), I've explained that two asset classes that usually...   READ MORE 

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STOCKS RETHINK FED POLICY STATEMENT -- XLF AND XLY GAP DOWN FROM RESISTANCE -- HEAD-AND-SHOULDERS REAPPEARS IN QQQQ -- SHORT-TERM RATES HIT RECORD LOW -- HOW LOW FOR THE 10-YEAR TREASURY YIELD? -- MOVING FROM RISK-ON TO RISK-OFF

by John Murphy,

Chief Technical Analyst, StockCharts.com

STOCKS RETHINK FED POLICY STATEMENT... Link for todays video. After bouncing yesterday afternoon, stocks opened sharply lower on Wednesday morning in what looks like a rethink of the Fed policy statement. The prospects of further quantitative easing and even lower interest rates may seem promising on the surface, but one...   READ MORE 

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FED'S DECISION TO BUY GOVERNMENT DEBT BOOSTS BONDS AND HELPS KEEP STOCK UPTREND INTACT -- GOLD AND GOLD STOCKS RALLY -- VIX STILL IN DOWNTREND -- ELI LILLY ACHIEVES BULLISH BREAKOUT

by John Murphy,

Chief Technical Analyst, StockCharts.com

FED TO REINVEST MORTGAGE PROCEEDS IN LONG TERM TREASURIES... Although bond yields have been falling (and bond prices rising) for more than four months, bond traders still liked today's Fed announcement that it planned to reinvest mortgage proceeds into long-term Treasuries to increase the money supply and give...   READ MORE 

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MAJOR INDEX ETFS HIT RESISTANCE -- CONSUMER DISCRETIONARY ADVANCES INTO RESISTANCE ZONE -- HOMEBUILDERS AFFIRM SUPPORT WITH SURGE -- RETAILER SPDR LIMPS HIGHER -- FINANCE SECTOR CHALLENGES RESISTANCE -- REGIONAL BANK SPDR BOUNCES OFF FLAG SUPPORT

by John Murphy,

Chief Technical Analyst, StockCharts.com

MAJOR INDEX ETFS RUN INTO RESISTANCE... Link for todays video. With the advance over the last five weeks, most major index ETFs are challenging resistance from their June highs and a key retracement zone. Chart 1 shows the Nasdaq 100 ETF (QQQQ) for starters. Resistance around 46-47.5 stems from...   READ MORE 

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10-YEAR TREASURY YIELD BREAKS JULY LOWS -- EURO AND YEN SURGE AFTER JOBS REPORT -- GOLD ETF SURGES AS DOLLAR FALLS -- SMH FORMS BEARISH ENGULFING AT RESISTANCE -- NYSE SUMMATION INDEX BOUNCES OFF LONG-TERM SUPPORT

by John Murphy,

Chief Technical Analyst, StockCharts.com

10-YEAR TREASURY YIELD BREAKS JULY LOWS... Link for todays video. Even though some of the economic reports were positive this week, the employment related reports on Thursday and Friday were decidedly negative. Initial jobless claims, a weekly statistic, rose on Thursday and Fridays non-farm payrolls showed 131,000 fewer jobs...   READ MORE 

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POINT & FIGURE CHARTS ADD PRECISION AND SIMPLICITY TO TREND SIGNALS -- A P&F LOOK AT STOCKS, BONDS, COMMODITIES, AND CURRENCIES

by John Murphy,

Chief Technical Analyst, StockCharts.com

STOCK INDEXES IN P&F UPTRENDS... One of the things I like best about poing & figure charts is their simplicity. Their strongest feature is that buy and sell signals are easier to spot than on bar or candlestick charts. A p&f chart shows alternating columns of...   READ MORE 

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ECONOMIC DATA LIFTS STOCKS AND SINKS BONDS -- MATERIALS, ENERGY AND INDUSTRIALS LEAD THE CHARGE -- HEALTHCARE SPDR SURGES ABOVE RESISTANCE -- BMY, PFE AND STJ LEAD HEALTHCARE SECTOR -- GOOGLE AND AMAZON POWER INTERNET ETF HIGHER

by John Murphy,

Chief Technical Analyst, StockCharts.com

ECONOMIC DATA LIFTS STOCKS AND SINKS BONDS... Link for todays video. Stocks started the day on a strong note after ADP Employer Services reported that companies added 42,000 jobs in July. The bulls were further bolstered with the ISM Services Index coming in well above 50 to show continued...   READ MORE