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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 Channel...   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...   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...   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...   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...   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...   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. Chart...   READ MORE 

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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...   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-...   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....   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...   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...   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...   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...   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&...   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...   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...   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...   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....   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