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BARRICK GOLD AND NEWMONT MINING HIT 52-WEEK HIGHS -- GOLD IS SOARING VERSUS THE CHINESE YUAN WHICH MAY PROMPT CHINESE BUYING -- GOLD AND GOLD STOCKS ARE STILL CHEAP RELATIVE TO S&P 500 -- GOLD IS OVERBOUGHT BUT STILL THE STRONGEST MARKET IN THE WORLD

by John Murphy,

Chief Technical Analyst, StockCharts.com

BARRICK AND NEWMONT MINING TURN UP ... With gold hitting new record highs each day, gold stocks are starting to play catch-up. Two of the biggest are at or very close to hitting new 52-week highs. Chart 1 shows Barrick Gold closing at a new 52-week high today....   READ MORE 

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TECHNOLOGY AND CONSUMER DISCRETIONARY LEAD REBOUND - SEMICONDUCTOR ETF GETS OVERSOLD BOUNCE - NETWORKING ETF RECOVERS AFTER SUPPORT BREAK - QUALCOM AND CISCO LEAD NETWORKERS - SHANGHAI COMPOSITE RISING WITHIN WEDGE - KOSPI SHOWS RELATIVE WEAKNESS

by John Murphy,

Chief Technical Analyst, StockCharts.com

ECONOMIC REPORTS STOKE THE BULLS... Video Link (click here) Selling pressure hit after the Feds policy statement yesterday, but the bulls were back in business on Thursday. It appears that a drop in initial jobless claims and a sharp increase in productivity sparked the bulls. Jobless claims decreased by 20,...   READ MORE 

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STOCKS FAIL TO HOLD EARLY GAINS - THE BATTLE FOR SUPPORT - FINANCE SPDR CLOSES WEAK - UTILITIES SPDR TESTS SUPPORT - DOLLAR MOMENTUM REMAINS BEARISH - EURO ETF HOLDS 50-DAY LINE - INFLATION PROTECTED BONDS SHOW STRENGTH

by John Murphy,

Chief Technical Analyst, StockCharts.com

STOCKS ERASE EARLY GAINS... Video Link (click here) The Fed left rates and its policy statement unchanged. Stocks were up heading into the announcement and just after the announcement, but selling pressure drove the major indices lower in the final hour. Chart 1 shows the Major Indices Market Carpet without...   READ MORE 

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INDIAN CENTRAL BANK BUYS GOLD -- MORE MAY FOLLOW -- GOLD IS RISING FASTER THAN ALL GLOBAL CURRENCIES -- CENTRAL BANKERS MAY START TREATING GOLD LIKE NEW RESERVE CURRENCY

by John Murphy,

Chief Technical Analyst, StockCharts.com

GOLD SURGES TO NEW RECORD IN HEAVY TRADING... Gold prices surged today to the highest level in its long history. Chart 1 shows the streetTrack Gold ETF (GLD) surging the equivalent of $25 dollars to a new record high. The volume bars show that recent trading activity (including today'...   READ MORE 

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MARKET INDEXES STILL TESTING OCTOBER LOW -- SO ARE FOREIGN ETFS -- CHIP DOWNGRADE WEIGHS ON MARKET AND OFFSETS BNI BOUNCE -- GOLD HITS RECORD HIGH AS DOLLAR TESTS 50-DAY AVERAGE

by John Murphy,

Chief Technical Analyst, StockCharts.com

GOLD HITS NEW RECORD HIGH... Gold prices have erupted to new record highs today. Chart 1 shows the streetTracks Gold ETF (GLD) breaking through its October highs today on rising volume. Chart 2 shows Silver iShares (SLV) bouncing off chart support at their late-September low and 50-day average....   READ MORE 

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DOLLAR RISE HURTS STOCKS AND COMMODITIES -- STOCK VOLUME PATTERN TURNS NEGATIVE -- NASDAQ AND S&P 500 NEAR POINT & FIGURE SELL SIGNALS -- BEAR FUND TURNS UP

by John Murphy,

Chief Technical Analyst, StockCharts.com

DOLLAR BOUNCE HURTS COMMODITIES ... I wrote a week ago about the U.S. Dollar Index starting to bounce from major support formed in the spring of 2008 near 22 and an oversold condition. I warned that a dollar rally could unsettle stocks and commodities. Chart 1 shows this week'...   READ MORE 

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FRIDAY'S STOCK PLUNGE WIPES OUT THURSDAY BOUNCE -- SEVERAL GROUPS HAVE COMPLETED DOUBLE TOPS -- AN IMPORTANT BREADTH INDICATOR WEAKENS -- WEEKLY CHART SHOWS S&P 500 UP STALLING NEAR MAJOR RESIS TANCE -- S&P 500 ENDS WEEK BELOW 50-DAY AVERAGE

by John Murphy,

Chief Technical Analyst, StockCharts.com

NO FRIDAY FOLLOW-THROUGH... Heading into Thursday, we had been warning about a downside correction in stocks and commodities (partially owing to a rebound in the oversold dollar). Thursday's stock rally muddied the water a bit. Friday's sharp price drop, however, erased all of the Thursday&...   READ MORE 

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NY COMPOSITE AND NASDAQ REBOUND - FINANCE SECTOR LEADS - DOW THEORY REMAINS BULLISH - USING PRICE AND TIME FILTERS - PERCENT OF STOCKS ABOVE 50-DAY AVERAGE PLUNGES - BONDS TEST KEY SUPPORT

by John Murphy,

Chief Technical Analyst, StockCharts.com

NYSE LEADS REBOUND... Video Link (click here) The harder the fall, the bigger the rebound. After plunging below the 50-day moving average on Wednesday, the NY Composite managed to hold above its early October low with a sharp rebound on Thursday. As chart 1 shows, the string of higher...   READ MORE 

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BROAD DECLINE ROCKS WALL STREET - SPY TESTS 50-DAY - SMALL-CAPS LEAD LOWER - RUSSELL 2000 ETF FORMS DOUBLE TOP - XLB, XLI AND IYT ALSO FORM DOUBLE TOPS - EURO AND STOCKS FALL TOGETHER - DOLLAR ETF SURGES

by John Murphy,

Chief Technical Analyst, StockCharts.com

STOCKS DECLINE ON INCREASED VOLUME... Video Link (click here) Selling pressure picked up significantly on Wednesday. All of the major indices were down over 1% with the Russell 2000 leading the way lower (-3.51%). All sectors were lower with energy, finance and materials down over 3%. Declining stocks outnumbered...   READ MORE 

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BANKS AND MATERIALS LEAD STOCKS LOWER -- BANK OF AMERICA IS ONE OF THE BIGGEST LOSERS -- OVERSOLD DOLLAR BOUNCES FROM 2008 LOWS -- THAT'S CAUSING NERVOUS PROFIT-TAKING IN STOCKS AND COMMODITIES

by John Murphy,

Chief Technical Analyst, StockCharts.com

BANK INDEX DROPS 3% ... A big drop in bank shares is pulling the financial sector lower today and the rest of the market with it. Chart 1 shows the PHLX Bank Index dropping well below its 50-day moving average. If those losses hold through the balance of the day,...   READ MORE 

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PLUNGE IN RAILROADS THREATENS DOW THEORY UPTREND -- FALLING CHIP STOCKS FORM ANOTHER NEGATIVE DIVERGENCE AS SOX WEAKENS -- NASDAQ COMPOSITE IS UP AGAINST MAJOR RESISTANCE NEAR 2200

by John Murphy,

Chief Technical Analyst, StockCharts.com

TRANSPORTS FAIL TEST OF SEPEMBER PEAK ... On Monday, I wrote a brief update on the Dow Theory which holds that the Dow Industrials and Transports need to both hit new highs to keep the current uptrend intact. Although the Industrials had already done so, I showed the Dow Transports still...   READ MORE 

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SETTING A SHORT-TERM BEAR TRAP - REGIONAL BANK ETF RECOVERS BIG TIME - XLF LEADS SECTORS HIGHER - THE PANIC PHASE OF A BEAR MARKET - SPY NEARS 62% RETRACEMENT MARK - MAJOR INDEX ETFS REMAIN IN MEDIUM-TERM UPTRENDS

by John Murphy,

Chief Technical Analyst, StockCharts.com

SPRINGING THE BEAR TRAP... Video Link (click here) Fighting the bigger trend is a dangerous game. With a sharp sell-off in the final hour on Wednesday, the S&P 500 ETF (SPY) broke below its prior low to reverse the short-term uptrend. This support break did not...   READ MORE 

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SMALL-CAPS LEAD LATE SELL-OFF - SPY BREAKS SHORT-TERM SUPPORT - FINANCE LEADS SECTORS LOWER - REGIONAL BANKS SHOW RELATIVE WEAKNESS - OCTOBER HAS BEEN GOOD FOR COMMODITIES - AGRICULTURE AND BASE METALS ETFS BREAK RESISTANCE - DOLLAR HITS ANOTHER NEW LOW

by John Murphy,

Chief Technical Analyst, StockCharts.com

STOCKS FAIL HOLD GAINS... Video Link (click here) Stocks opened strong with positive reactions to earnings from Morgan Stanley, US Bancorp and Yahoo!. However, these gains proved fleeting as selling pressure hit hard in the final hour of trading. Small-caps led the way lower with the Russell 2000 ETF...   READ MORE 

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APPLE TESTS OLD HIGH -- MARKET IS LOSING HOUSING AND REIT SUPPORT -- CONSUMER DISCRETIONARY/STAPLES RATIO IS STARTING TO WEAKEN WHICH SHOWS MORE CAUTION -- HERSHEY FOODS RISES WHILE SHERWIN WILLIAMS TUMBLES

by John Murphy,

Chief Technical Analyst, StockCharts.com

APPLE GAINS 5% BUT REACHES RESISTANCE... Apple shares have gapped 5% higher today. Upside volume over the last two days has been exceptional. That's given a boost to the technology sector. There is one caveat, however, that you should at least be are of. Apple is testing its...   READ MORE 

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STOCKS AND COMMODITIES CONTINUE RALLY AS DOLLAR DROPS -- COPPER JUMPS 4% AS CHINESE ETFS HIT NEW HIGHS -- DOW NEARS 50% RETRACEMENT POINT NEAR 10,500

by John Murphy,

Chief Technical Analyst, StockCharts.com

COMMODITIES CONTINUE BULL RUN ... The dollar is dropping again and commodities are rising. Chart 1 shows the DB Commodities Tracking Index (DBC) exceeding its early August high after completing a bullish symmetrical triangle. Most commodities are joining the rally. Chart 2 shows the United States Oil Fund (USO) having also...   READ MORE 

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DOW THEORY UPDATE -- DOW TRANSPORTS ARE TESTING SEPTEMBER HIGHS -- UPSIDE LEADERS ARE RYDER AND OVERSEAS SHIPBUILDING -- UTILITIES ARE ALSO CLOSE TO BREAKING OUT -- UTILITY LEADERS ARE PG&E AND SOUTHERN COMPANY -- ELY LILLY BREAKS RESISTANCE LINE

by John Murphy,

Chief Technical Analyst, StockCharts.com

DOW THEORY UPDATE ... One of our readers asked for an update on Dow Theory. Just to refresh your memory, Dow Theory holds that the Dow Industrials and Transports must both hit new highs to confirm an ongoing uptrend. Chart 1 shows the Dow Industrials having already done so. Chart 2...   READ MORE 

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CONSUMER STAPLES START TO ATTRACT NEW MONEY -- THAT SUGGESTS INVESTORS ARE LOOKING FOR DEFENSE OR VALUE -- WEEKLY LEADERS INCLUDE SUPERVALU, KROGER, SAFEWAY, AND SYSCO -- NYSE AD LINE NEARS 2007 HIGH

by John Murphy,

Chief Technical Analyst, StockCharts.com

CONSUMER STAPLES SHOW SOME STRENGTH ... For the first time since March, consumer staples are starting to show some market leadership. They were the strongest group on Friday, the third strongest on the week, and second strongest of the last month (behind energy). Chart 1 shows the Consumer Staples SPDR (XLP)...   READ MORE 

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OIL ETF BREAKS TRIANGLE - GASOLINE SURGES TO RESISTANCE - AGRICULTURE ETF BREAKS OUT - INDUSTRIAL METALS ETF CHALLENGES RESISTANCE - COMPARING ETFS AND THE UNDERLYING - HEALTHCARE SPDR AFFIRMS UPTREND - STOCKS TO WATCH (LLY, PFE, AMGN, MDT)

by John Murphy,

Chief Technical Analyst, StockCharts.com

OIL ETF BREAKS TRIANGLE... Video Link (click here) John Murphy showed a symmetrical triangle pattern in the US Oil Fund ETF (USO) on Monday. John also said, an eventual upside breakout is likely. Chart 1 shows USO breaking above triangle resistance with a big move today. A report showing a...   READ MORE 

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SMALL-CAPS LEAD BROAD RALLY - JP MORGAN POWERS THE FINANCE SECTOR - XLF BREAKS SEPTEMBER HIGH - JPM-BAC-WFC-USB LEAD FINANCE SECTOR - INTEL LIFTS THE SEMIS - SMH BREAKS RESISTANCE - RISK-ON TRADE REMAINS AS DOW HITS 10K AND DOLLAR HITS NEW LOW

by John Murphy,

Chief Technical Analyst, StockCharts.com

SMALL-CAPS LEAD BROAD RALLY... Video Link (click here) The Russell 2000 and the NY Composite led the major indices on Wednesday. All of the major indices were up on the day, but the Russell 2000 and NY Composite were the only two to gain 2%. Chalk it up to...   READ MORE 

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ANSWERS TO P&F QUESTIONS -- THE FIRST SIGNAL IS ALWAYS THE BEST ONE -- TRY PERCENTAGE SCALES WHEN THERE ARE DISCREPANCIES -- THE DOLLAR HAS NO LONG-TERM LINK TO STOCKS -- CORPORATE BONDS DO

by John Murphy,

Chief Technical Analyst, StockCharts.com

THE FIRST SIGNAL IS ALWAYS THE BEST ONE... Chart 1 is the point & figure chart of the S&P 500 that I posted on Friday to show that its trend is still upward, and made mention of the buy signal given at 935 during July. One of our...   READ MORE 

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OIL SERVICE STOCKS LEAD STRONG ENERGY COMPLEX TO 52-WEEK HIGHS -- CHEVRON BREAKS OUT -- CRUDE OIL AND NATURAL GAS ARE TESTING IMPORTANT RESISTANCE LINES AND APPEAR TO BE HEADED HIGHER

by John Murphy,

Chief Technical Analyst, StockCharts.com

OIL SERVICE BREAKOUTS ... With energy prices on the rise, stocks in the energy patch have become market leaders. That's certainly the case today. While energy is the day's top sector, oil service is the top energy industry group. Chart 1 shows Oil Service Holders rising to...   READ MORE 

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A POINT & FIGURE VIEW OF CURRENT MARKETS SHOW UPTREND STILL INTACT -- GOLD STOCKS ARE RISING FASTER THAN BULLION -- DOLLAR AND VIX STILL IN DOWNTRENDS -- RISING TIPS MATCH JUMP IN COMMODITIES -- CORPORATE BONDS SELLOFF

by John Murphy,

Chief Technical Analyst, StockCharts.com

STOCK TREND IS STILL UPWARD ... A rebound in global stock markets this week has kept the seven-month uptrend intact. On Monday, I showed major stock indexes bouncing off their 50-day moving averages. The only potential negative is that trading activity on the way up was less than it...   READ MORE 

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ENERGY SECTOR LEADS HIGHER - ALCOA POWER MATERIALS SECTOR - FILLED VERSUS HOLLOW CANDLESTICKS - PRECIOUS METALS LEAD COMMODITY GROUPS - INDUSTRIAL METALS AND ENERGY INDICES REMAIN RANGE BOUND

by John Murphy,

Chief Technical Analyst, StockCharts.com

ENERGY STOCKS SURGE... Video Link (click here) With oil moving back above $70, energy stocks advanced sharply and led all sectors on Thursday. Chart 1 shows the Energy SPDR (XLE) challenging its September high. After a pullback in late September, XLE found support near the early September gap and surged...   READ MORE 

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STOCKS STALL WITH MIXED TRADING - FINANCE SECTOR LEADS - REGIONAL BANKS LAG - HOMEBUILDERS CONTINUE TO SHOW RELATIVE WEAKNESS - REIT ISHARES RETURN TO BREAKOUT - SHORT-TERM RATES POSITIVELY CORRELATED TO THE DOLLAR

by John Murphy,

Chief Technical Analyst, StockCharts.com

STOCKS STALL IN MIXED ACTION... Video Link (click here) Trading was mixed on Wednesday as the major indices meandered on either side of unchanged. Chart 1 shows the Dow finishing virtually unchanged with an indecisive candlestick. After two sharp gains on Monday and Tuesday, a little indecision is understandable. Overall,...   READ MORE 

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HIKE IN AUSSIE RATES GIVES BIG BOOST TO GLOBAL STOCKS AND COMMODITIES -- GOLD HITS RECORD HIGH -- COAL STOCKS HELP LEAD ENERGY RALLY

by John Murphy,

Chief Technical Analyst, StockCharts.com

AUSSIE DOLLAR HITS 52-WEEK HIGH ... The Australian central bank lifted its short-term interest rate 25 basis points to 3.25% from the lowest level in nearly half a century. It was the first G-20 country to do so. Global stocks and commodities rallied sharply on the view...   READ MORE 

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PRECIOUS METAL AND ENERGY STOCKS LEAD MONDAY RALLY -- SO DO NATURAL GAS STOCKS -- STOCK INDEXES BOUNCE OFF 50-DAY LINES BUT ON LIGHTER VOLUME

by John Murphy,

Chief Technical Analyst, StockCharts.com

FALLING DOLLAR HELPS... A falling dollar is giving boost to stocks and commodities on Monday. Gold stocks are the one of the day's top groups. The reason is a jump in gold and silver prices. Chart 1 shows the streetTrack Gold Trust ETF (GLD) climbing the equivalent of...   READ MORE 

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TREASURY BONDS SIGNAL MORE CAUTION ON THE ECONOMY -- INVESTORS MAY START FAVORING SAFER TREASURIES OVER RISKIER JUNK BONDS -- MORE ON MACD LINES -- % NYSE STOCKS OVER 50-DAY AVG WEAKENS -- ABBOTT LABS TOP HEALTH CARE GAINER

by John Murphy,

Chief Technical Analyst, StockCharts.com

BREAKDOWN IN BOND YIELD MAY BE BAD FOR STOCKS ... One of the catalysts behind Thursdays heavy stock selling was the breakdown in Treasury bond yields. The 10-Year T-note yield fell below its July low to the lowest level in more than four months. Bond yields are an indicator...   READ MORE 

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STOCKS FALL SHARPLY ON INCREASING VOLUME - FINANCIALS LEAD LOWER - RETRACEMENT CLUSTERS MARK RESISTANCE FOR KEY SECTORS - DOLLAR SURGES AS STOCKS DECLINE - GOLD FOLLOWS EURO LOWER - BONDS BENEFIT FROM WEAKNESS IN STOCKS

by John Murphy,

Chief Technical Analyst, StockCharts.com

SELLING PRESSURE INTENSIFIES... Video Link (click here) Wall Street was hit with heavy selling pressure ahead of Fridays employment report. All major indices were down over 2%. Small-caps led the way with the Russell 2000 lost over 3%. All nine sectors were down with the Materials SPDR losing almost...   READ MORE 

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DOW CHOPS LOWER - VIX SURGES AND STAYS ELEVATED - VOLATILITY AND STOCK MARKET REMAIN INVERSELY CORRELATED - DEFENSIVE SECTORS PERKING UP - OIL SURGES AS GAS INVENTORIES CONTRACT - GOLD AND METALS ALSO BOUNCE

by John Murphy,

Chief Technical Analyst, StockCharts.com

VOLATILITY REIGNS SUPREME... Video Link (click here) For the second time in six days, the stock market plunged and recovered - though todays plunge-recovery was much quicker than the previous. Chart 1 shows the Dow Industrials plunging after the FOMC policy statement last Wednesday afternoon. The Dow stalled for a...   READ MORE 

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PHARM HOLDERS REACH 52-WEEK HIGH -- ABBOTT LABS GAPS HIGHER ON ACQUISITION NEWS -- WYETH HITS THREE-YEAR HIGH -- BRISTOL MYERS SQUIBB NEARS BULLISH BREAKOUT -- WATSON PHARMACEUTICALS HITS FIVE-YEAR HIGH

by John Murphy,

Chief Technical Analyst, StockCharts.com

DRUG STOCKS SHOWING SOME LEADERSHIP... At the start of last week, I wrote an article about some money starting to flow into the healthcare sector. My main focus in that earlier article was on biotech stocks that were starting to attract some money. Today's healthcare focus is on...   READ MORE 

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HOW TO BLEND DAILY AND WEEKLY SIGNALS -- STOCK WINNERS AND LOSERS -- WATCHING % OF STOCKS ABOVE 50-WEEK MA FOR CLUES -- PRECIOUS METAL SUPPORT LEVELS -- TREASURIES RALLY -- S&P 500 SUPPORT LEVELS

by John Murphy,

Chief Technical Analyst, StockCharts.com

WHICH IS BETTER?... One of our readers asked whether it's better to use daily or weekly signals on price charts. The answer depends on the time horizon for your trading decisions. If you're a relatively inactive investor, who only makes decisions at important turning points, weekly...   READ MORE 

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STOCKS FALLS AS DOLLAR BOUNCES - HOMEBUILDERS WEIGH ON STOCK MARKET - FINANCE SECTOR IS STILL THE OVERALL LEADER - RELATIVE PERFORMANCE IN XLY STALLS - QQQQ AND IWM NEAR RETRACEMENTS - MEASURING RETRACEMENTS - USING RETRACEMENT CLUSTERS

by John Murphy,

Chief Technical Analyst, StockCharts.com

DOLLAR BOUNCES AS STOCKS FALL... Video Link (click here) After an intraday reversal and higher close on Wednesday, the Dollar followed through on Thursday with another gain. Conversely, the S&P 500 ETF followed up on Wednesdays key reversal with further losses. However, it is still too early to...   READ MORE 

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STOCKS FALL SHARPLY AFTER FED ANNOUNCEMENT - RSI BECOMES OVERBOUGHT FOR DIA - EURO MOVES WITH STOCK MARKET - OIL GETS HIT BY RISING SUPPLIES - BONDS BOUNCE AFTER FED ANNOUNCEMENT - TELECOM ETF BREAKS RESISTANCE - AT&T AND CENTURYTEL LEAD

by John Murphy,

Chief Technical Analyst, StockCharts.com

STOCKS DECLINE AFTER FED STATEMENT... Video Link (click here) As was widely expected, the Fed left the Fed Funds rate unchanged. With a target range of 0-.25%, Fed Funds are trading at record lows. Whats more, the Fed said it would keep the target rate near these record lows...   READ MORE 

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MARKET VECTORS COAL ETF NEARS 52 WEEK HIGH -- COAL LEADERS ARE PEABODY AND CONSOLIDATED ENERGY -- ARCH COAL BREAKS OUT OF BASING PATTERN -- DOLLAR DROP TO NEW LOW BOOSTS STOCKS AND COMMODITIES

by John Murphy,

Chief Technical Analyst, StockCharts.com

MARKET VECTORS COAL ETF NEARS 52-WEEK HIGH... Here's an energy ETF that I haven't written about before. It's the Market Vectors Coal ETF (KOL) and it's based on a group of stocks tied to the price of coal. The ETF has...   READ MORE 

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METAL STOCKS ARE RISING ALONG WITH COMMODITIES -- STILLWATER MINING NEARS 52-WEEK HIGH ON RISING PLATINUM AND PALLADIUM PRICES -- STEEL STOCKS ALSO ON THE RISE -- AKS IS US LEADER -- CLF COMPLETES MAJOR BOTTOM

by John Murphy,

Chief Technical Analyst, StockCharts.com

PRECIOUS METALS GAP HIGHER ... With the U.S. Dollar falling to the lowest level in a year today, stocks and commodities are bouncing again. Precious metals are having an especially strong day. Gold, silver, and platinum have gapped higher and are challenging last week's highs as shown in...   READ MORE 

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CELGENE UPGRADE SPARKS BIOTECH BUYING -- AMGEN AND GILEAD HAVE PROMISING CHART PATTERNS -- ALEXION, ILLUMINA, AND VERTEX ARE IN CHART UPTRENDS -- SOME DEFENSIVE MONEY MAY BE MOVING TO HEALTCHARE

by John Murphy,

Chief Technical Analyst, StockCharts.com

BIOTECHS ETFS HAVE STRONG DAY... On a day when most stocks and commodities pulled back a bit and the dollar bounced, healthchare was the day's top performing group. Biotechs were the main reason why. Charts 1 and 2 show Biotech iShares (IBB) and Biotech Holders (BBH) nearing the...   READ MORE 

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FALLING DOLLAR FAVORS FOREIGN SHARES -- IT ALSO FAVORS FOREIGN ETFS OVER UNDERLYING STOCKS -- NEXT UPSIDE TARGET FOR S&P 500 IS 1120 -- NATURAL GAS IS FIDELITY'S TOP SECTOR FUND FOR THE WEEK -- GOLD NEARS TESTS OF MARCH 2008 INTRA-DAY AT $1033

by John Murphy,

Chief Technical Analyst, StockCharts.com

FALLING DOLLAR FAVORS FOREIGN STOCKS... Arthur Hill reviewed some standard intermarket relationships on Thursday. One of the best known is the inverse relationship between the U.S. Dollar and commodity prices. That's why a falling dollar has had a bullish impact on commodity prices since the spring. The...   READ MORE 

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DOW THEORY SIGNAL AFFIRMED - AIRLINES POWER DOW TRANSPORTS - INTERMARKET CORRELATIONS BLUR - COMMODITIES ARE NEGATIVELY CORRELATED WITH BONDS - DBC BREAKS CHANNEL RESISTANCE - TLT HOLDS BREAKOUT

by John Murphy,

Chief Technical Analyst, StockCharts.com

TRANSPORTS AND INDUSTRIALS FORGE HIGHER HIGHS... Video Link (click here). Last week I noted that the Dow Industrials had yet to break its late August highs and that a non-confirmation could be brewing. With the advance over the last five days, chart 1 shows the Dow Industrials easily clearing...   READ MORE 

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SMALL-CAPS LEAD BROAD ADVANCE - FINANCE SECTOR SHOWS RELATIVE STRENGTH - REGIONAL BANKS AND REITS POWER FINANCE - OIL FORMS BULLISH CUP-WITH-HANDLE PATTERN - XLE AND OIH BREAK RESISTANCE - GLD CHALLENGES 2008 HIGH.

by John Murphy,

Chief Technical Analyst, StockCharts.com

SMALL-CAPS LEAD BROAD ADVANCE... Video Link (click here) Stocks moved sharply higher on Wednesday with a broad advance. All major index ETFs were up over 1%. All nine sectors were higher with energy and finance leading the way. The technology sector lagged with a relatively small gain on the...   READ MORE 

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POINT & FIGURE TRENDS FOR MAJOR STOCK INDEXES ARE STILL UP -- NEW BULLISH PERCENT BUY SIGNALS HAVE BEEN GIVEN IN GOLD AND ENERGY -- NEW ENERGY BUYING APPEARS TO BE COMING FROM A REBOUND IN NATURAL GAS -- NATURAL GAS STOCK LEADERS INCLUDE CHK, DVN, AND EP

by John Murphy,

Chief Technical Analyst, StockCharts.com

POINT & FIGURE TRENDS ARE STILL UP... It's true that the market has recovered more than 50% since March. It's also true that many indicators show overbought readings. The most important indicator of all, however, is the actual trend of prices which is still up. At...   READ MORE