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XLK AND QQQQ BREAK JUNE HIGHS - THINK BEFORE YOU LEAP - LOW VOLUME A MINOR CONCERN - USO HITS TRENDLINE SUPPORT - EXPONENTIAL MOVING AVERAGES VERSUS SIMPLE MOVING AVERAGES

by John Murphy,

Chief Technical Analyst, StockCharts.com

TECHS CONTINUE TO LEAD ... Link for todays video. The stock market moved higher on Thursday, but participation was a bit more mixed. Eight of the nine sectors were higher with the Financials SPDR (XLF) declining on the day. Technology showed relative strength with the second biggest gain on the day....   READ MORE 

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SPY CHALLENGES JULY HIGH - QQQQ LEADS THE SURGE - SMH GAPS HIHGER - GOLD AND GDX MOVE SHARPLY HIGHER - DOLLAR BREAKS TRIANGLE SUPPORT - EURO HOLDS SUPPORT - MCCLELLAN OSCILLATORS REMAIN BEARISH

by John Murphy,

Chief Technical Analyst, StockCharts.com

SPY SURGES BACK TO JULY HIGH. ... After breaking below its May lows just seven days ago, the S&P 500 ETF (SPY) recouped its July losses with a surge over the last three days. The strength behind the move of the last three days is extraordinary (3 days, 5+...   READ MORE 

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BROKERAGE UPGRADE GIVES FINANCIALS BIG BOOST -- S&P 500 CLOSES BACK ABOVE NECKLINE IN CHALLENGE OF HEAD AND SHOULDERS TOP

by John Murphy,

Chief Technical Analyst, StockCharts.com

FINANCIAL STOCKS JUMP 6%... A buy signal on Goldman Sachs by a prominent Wall Street analyst and an upgrade on bank stocks gave a big boost to that sector and the rest of the market with it. The Financials Sector SPDR (XLF) climbed 6.4% and it did so on...   READ MORE 

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ANOTHER DROP IN CONSUMER CONFIDENCE WEAKENS STOCKS AS BROKEN SUPPORT BECOMES NEW RESISTANCE -- TREASURIES RALLY AS STOCKS AND COMMODITIES DROP -- A RIGHT SHOULDER RALLY IN THE DOLLAR COULD COINCIDE WITH A RIGHT SHOULDER BOTTOM IN STOCKS

by John Murphy,

Chief Technical Analyst, StockCharts.com

STOCK INDEXES CONTINUE TO SLIP ... Today's report of another drop in consumer confidence is contributing to more stock selling. Charts 1 through 3 show the downward drift in all three major stock indexes. Another negative sign for the market is that former support levels that have been broken...   READ MORE 

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SPY BATTLES SUPPORT - RETAIL HOLDRS BREAK SUPPORT - REGIONAL BANKS REMAIN WEAK - REVIEWING THE 2002-2003 BASING PROCESS - PROJECTING PULLBACK TARGETS FOR SPY

by John Murphy,

Chief Technical Analyst, StockCharts.com

SPY AND DIA BATTLE SUPPORT... Link for todays video. After sharp declines in mid June and early July, the S&P 500 ETF (SPY) and Dow Diamonds (DIA) are testing support from the May lows. Chart 1 shows SPY with a head-and-shoulders pattern extending back to May. After breaking...   READ MORE 

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YEN SURGES - EURO FAILS TO HOLD BREAKOUT - DOLLAR REMAINS IN DOWNTREND - GOLD PLUNGES ALONG WITH OIL - SPY STALLS NEAR NECKLINE BREAK - SECTOR ROTATIONS REFLECT DEFENSIVE POSTURING

by John Murphy,

Chief Technical Analyst, StockCharts.com

YEN GETS A BIG MOVE... Link for todays video. The Yen ETF (FXY) surged over 2% as money moved into relative safety. According to Bloomberg, the Yen advanced against its 16 biggest trading partners (other currencies). The biggest gains came against the South African Rand and the Australian Dollar, two...   READ MORE 

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MARKET INDEXES BREAK MORE SUPPORT LEVELS AS VOLATILITY RISES -- SO DOES THE PUT/CALL RATIO -- RISING YEN SIGNALS MOVE TO LOWER RISK -- CRUDE OIL IS FALLING ALONG WITH STOCKS

by John Murphy,

Chief Technical Analyst, StockCharts.com

NASDAS 100 VIOLATES 50-DAY AVERAGE AS VOLATILITY RISES... I wrote yesterday that rising volatility measures for the Nasdaq (VXN) and the S&P 500 (VIX) were starting to rally which would be bearish for stocks. I also showed the Nasdaq 100 threatening to break its 50-day moving average. Chart...   READ MORE 

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VOLATILITY INDEXES ARE BOUNCING OFF MAJOR SUPPORT LINES -- THE VIX ALSO HAS A SEASONAL TENDENCY TO BOTTOM IN JULY -- RISING VOLATILITY IS USUALLY ASSOCIATED WITH A WEAKER STOCK MARKET

by John Murphy,

Chief Technical Analyst, StockCharts.com

BOUNCING VIX TESTS 50-DAY MA... The CBOE Volatility (VIX) Index has been falling since March (as stocks have risen). The VIX peak in March near 53 coincided with the stock market bottom. A falling VIX is good for stocks since they trend in opposite directions. Correspondingly, a rising VIX is...   READ MORE 

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SPRING RALLY ENDS AS S&P 500 FULFILLS INITIAL UPSIDE OBJECTIVES -- A SHORT-TERM HEAD AND SHOULDERS TOP COULD HELP COMPLETE A MAJOR HEAD AND SHOULDERS BOTTOM -- SECTOR ROTATION TURNS MORE DEFENSIVE

by John Murphy,

Chief Technical Analyst, StockCharts.com

S&P 500 HAS FULFILLED UPSIDE OBJECTIVES FOR NOW ... If you've been reading our market messages over the past couple of weeks, you know that we've called for an end to the spring rally and the start of a normal corrective process. There are several...   READ MORE 

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STOCKS DECLINE AFTER JOBS REPORT- CLUES FROM THE 1998 SURGE - WATCHING THE MAY LOWS - MONTHLY TREND REMAINS DOWN - VOLATILITY CONTINUES TO FALL - CUMULATIVE NET NEW HIGHS CONTINUES TO RISE

by John Murphy,

Chief Technical Analyst, StockCharts.com

EMPLOYMENT REPORT ROCKS STOCKS... Non-farm payrolls declined 467,000 for June, which was worse than expected. Stocks took the news hard with a broad based decline in early trading. The major indices were down over 2% around noon. All sector ETFs were lower with the Consumer Discretionary SPDR (XLY) leading...   READ MORE 

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STOCKS GIVE UP EARLY GAINS - BEARISH FAILURE SWING FOR RSI - INTEL AND TEXAS INSTRUMENTS LEAD SEMIS - DOLLAR DIPS AS RISK APPETITE INCREASES - GOLD BOUNCES OFF SUPPORT - OIL FAILS TO HOLD EARLY GAINS

by John Murphy,

Chief Technical Analyst, StockCharts.com

STOCKS GIVE UP EARLY GAINS... Link for todays video. Stocks surged in early trading with the major index ETFs sporting nice gains after the first hour of trading. However, there was no follow through as stocks drifted lower the rest of the day. Charts 1, 2 and 3 show 60-minute...   READ MORE 

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DROP IN CONSUMER CONFIDENCE WEIGHS ON STOCKS AS MARKET ENDS FIRST HALF OF YEAR -- A SHORT-TERM TOP MAY BE FORMING -- COMMODITIES ALSO SELL OFF AS DOLLAR BOUNCES -- TIPS REMAIN A SECOND QUARTER FAVORITE

by John Murphy,

Chief Technical Analyst, StockCharts.com

S&P 500 MAY END QUARTER ON FLAT NOTE... A drop in June consumer confidence to 49.3 from May's revised reading of 54.8 has caused some nervous selling in stocks as the market ends the month, quarter, and first half of the year. It remains...   READ MORE 

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DOW AND S&P 500 BOUNCE OFF MAY LOW -- A SHORT-TERM TOP, HOWEVER, COULD LEAD TO A 38%-50% CORRECTION OF THE SPRING RALLY -- 200-DAY AVERAGES PROVIDE SUPPORT BUT ARE STILL DROPPING

by John Murphy,

Chief Technical Analyst, StockCharts.com

RUSSELL RE-BALANCING CAUSES LATE VOLUME SPIKE... In yesterday's message, I showed the Dow and S&P 500 bouncing off chart support near their May lows. The ability to bounce off initial support prevented a more serious breakdown. I also suggested, however, that the late-week bounce could still...   READ MORE 

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DOW BOUNCES OFF MAY LOW WHILE NASDAQ HOLDS MAY HIGH -- STOCK INDEXES, HOWEVER, ARE STILL TRADING BELOW LAST WEEK'S HIGH -- MOVING AVERAGE LINES HAVE PROVIDED SUPPORT DURING RECENT PULLBACK

by John Murphy,

Chief Technical Analyst, StockCharts.com

DOW AND S&P BOUNCE OFF MAY LOWS... During any market pullback, the first layer of support is usually a previous reaction low. That's why we chose the May low as our initial downside target for the Dow and S&P 500 indexes. Arthur Hill showed...   READ MORE 

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DIA BOUNCES OFF SUPPORT - QQQQ SHOWS RELATIVE STRENGTH - MICROSOFT PACES PC STOCKS - THE MAY LOWS ARE HOLDING - XLV LEADS THE MARKET - LLY AND BMY BREAK OUT - FINANCE SECTOR STILL LAGGING - JPM AND WFC EDGE LOWER

by John Murphy,

Chief Technical Analyst, StockCharts.com

DIA BOUNCES OFF SUPPORT... Chart 1 shows the Dow Diamonds (DIA) bouncing off support from the May lows with a bullish engulfing on Thursday. As DIA tested support, notice that the Commodity Channel Index (CCI) became oversold with the decline below 84. The combination of oversold conditions and support set...   READ MORE 

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DOW TESTS MAY LOWS - TRANSPORTS FORM DOUBLE TOP - RETAIL HOLDRS SHOWS RELATIVE WEAKNESS - WAL-MART WEIGHS ON RETAIL - SMH BREAKS PITCHFORK TRENDLINE - EURO GIVES BACK GAINS - GOLD FIRMS AT SUPPORT

by John Murphy,

Chief Technical Analyst, StockCharts.com

INDUSTRIALS AND TRANSPORTS TEST MAY LOWS... After a sharp decline in June, a number of key indices, ETFs and stocks are testing support from their May lows. First up, chart 1 shows the Dow Industrials with support from broken resistance around 8200. This support area was confirmed with a couple...   READ MORE 

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EMERGING MARKETS LEAD DECLINE IN GLOBAL STOCKS AND COMMODITIES -- S&P 500 IS RETESTING ITS 200-DAY AVERAGE --TRANSPORTS, REITS, AND CHIPS HAVE BROKEN 50-DAY LINES AS DOWNSIDE CORRECTION DEEPENS -- BONDS AND DOLLAR BOUNCE

by John Murphy,

Chief Technical Analyst, StockCharts.com

S&P 500 RETESTS 200-DAY AVERAGE ... My final chart on Friday showed hourly bars for the S&P 500 SPDRs starting to back off from overhead resistance starting at 92.76 which translated into 927 for the S&P 500. I suggested that a failure at that...   READ MORE 

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NYSE BULLISH PERCENT INDEX TURNS DOWN -- 13 AND 34 WEEK EMAS HAVEN'T CROSSED -- DON'T CONFUSE SHORT- AND LONG-TERM VIEWS -- THE 200-DAY AVERAGE HOLDS THE KEY TO SHORT-TERM MARKET DIRECTION

by John Murphy,

Chief Technical Analyst, StockCharts.com

BPNYA TURNS DOWN FROM OVERBOUGHT TERRITORY ... I recently showed the NYSE Bullish Percent Index (BPNYA) having reached overbought territory over 70. the BPNYA is the percent of NYSE stocks that are in point & figure uptrends. I suggested that a drop below the May trough at 68 could signal a...   READ MORE 

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SPY HITS RESISTANCE ZONE - MEDIUM-TERM MOMENTUM REMAINS BULLISH FOR SPY - QQQQ STALLS NEAR BROKEN RESISTANCE - BREADTH CONTINUES TO WEAKEN - AD VOLUME LINE FORMS NEGATIVE DIVERGENCE - VIX NEARS DOWNTREND RESISTANCE

by John Murphy,

Chief Technical Analyst, StockCharts.com

SPY HITS RESISTANCE ON WEEKLY CHART... There is still a compelling case for a stock market correction or decline from current levels. Chart 1 show the S&P 500 ETF (SPY) surging over 40% from its March low without a correction. Even though the spring uptrend remains in place,...   READ MORE 

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SEMICONDUCTORS STAY STRONG - HEALTHCARE REBOUNDS - BMY AND PFE PACE HEALTHCARE - BIOTECHS SURGE - AMGN AND GILD LEAD BIOTECHS HIGHER - INTERMARKET PICTURE FLIPS IN JUNE - TECHNOLOGY REMAINS A STRONG SECTOR

by John Murphy,

Chief Technical Analyst, StockCharts.com

SEMIS HOLD THE UPTREND... Link for todays video. The Semiconductors HOLDRS (SMH) remains in an uptrend that has yet to reverse. Chart 1 shows SMH with Andrews Pitchfork (blue lines). The indicators icon is shown at the top of the price chart. After selecting the indicator, users then choose (click)...   READ MORE 

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RESPONSES TO QUESTIONS ON MCCLELLANN OSCILLATORS, DOW THEORY WEEKLY SIGNALS, AND GOLDEN CROSSES -- THE BOTTOM LINE IS THAT GLOBAL STOCKS APPEAR TO BE ENTERING A DOWNSIDE CORRECTION -- TECHNICAL SIGNS SUGGEST THE SPRING RALLY HAS PROBABLY ENDED

by John Murphy,

Chief Technical Analyst, StockCharts.com

MCCLELLAN OSCILLATORS ARE NEGATIVE ... One of our readers points out that the McClellan Oscillators for the NYSE (NYMO) and the Nasdaq (NAMO) are both in negative territory and are showing negative divergence from their price indexes. The reader is right on both counts. On May 16, I pointed out the...   READ MORE 

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GLOBAL STOCKS AND COMMODITIES SLIDE AS DOLLAR REBOUNDS -- RAILS LEAD TRANSPORTS LOWER -- MAJOR INDEXES MAY RETEST 200-DAY MOVING AVERAGE LINES

by John Murphy,

Chief Technical Analyst, StockCharts.com

DOLLAR CONTINUES BOUNCE OFF DECEMBER LOW ... On Friday June 5, I showed the U.S. Dollar Index starting to bounce off chart support at its December low. I also showed the Euro pulling back from resistance at its December peak. I wrote that a drop in the Euro (dollar rally)...   READ MORE 

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DOW THEORY UPDATE -- DOW TRANSPORTS FAIL TO CONFIRM LAST UPMOVE IN DOW INDUSTRIALS -- DOW THEORY OVERLAPS WITH ELLIOTT WAVES -- MAJOR DOWNSIDE OBJECTIVES WERE COMPLETED IN MARCH -- THE KEY NOW LIES WITH THE S&P 500 EXCEEDING ITS JANUARY HIGH

by John Murphy,

Chief Technical Analyst, StockCharts.com

JANUARY HIGHS ARE THE KEY ... One of our readers asked for an update on Dow Theory. For those of you not familiar with it, Dow Theory requires that the Dow Industrials and Transports must both exceed a previous peak to signal that a "confirmed" uptrend exists. The key...   READ MORE 

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ENERGY STOCKS LEAD - BASE METALS SURGE - OIL CONTINUES ITS ADVANCE - GOLD MEETS RESISTANCE - DOLLAR ATTEMPTS TO FIRM AT SUPPORT - CONSUMER DISCRETIONARY SECTOR LAGS BROADER MARKET

by John Murphy,

Chief Technical Analyst, StockCharts.com

ENERGY STOCKS LEAD THE MARKET... The Energy SPDR (XLE) led the market higher with a surge above resistance on Thursday. Chart 1 shows XLE breaking above resistance from the November-January highs. Prior to this breakout, XLE broke triangle resistance in late April and again in late May. The energy SPDR...   READ MORE 

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ANALYZING DIVERGENCES - PPO DIVERGENCES FORM IN IWM AND SPY - RSI BECOMES OVERBOUGHT FOR QQQQ - GAS AND INTEREST RATES CONTINUE TO RISE - REGIONAL BANK ETF SHOWS RELATIVE WEAKNESS

by John Murphy,

Chief Technical Analyst, StockCharts.com

DISSECTING DIVERGENCES ... There are some negative divergences to report, but first lets review the definition and look at some prior signals. A negative divergence occurs when the underlying security moves to a new high, but the indicator fails to exceed its prior high. This lower high in the indicator signals...   READ MORE 

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POINT & FIGURE CHARTS OFFER EASILY SPOTTED BUY AND SELL SIGNALS -- USING STOCK SCAN P&F ALERTS -- NYSE BULLISH PERCENT INDEX IS IN UPTREND BUT OVERBOUGHT

by John Murphy,

Chief Technical Analyst, StockCharts.com

POINT & FIGURE CHARTING... Although most of the charts shown in our Market Messages are bar and candlesticks, you should be aware of a third type of chart that can be extremely helpful in spotting market signals -- the point and figure chart. In my view, the main value of...   READ MORE 

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SPIKE IN 2-YEAR TREASURY YIELD SUPPORTS DOLLAR BUT CAUSES PROFIT-TAKING IN STOCKS AND COMMODITIES -- S&P 500 MANAGES TO HOLD ABOVE INITIAL CHART SUPPORT AT 925 AND ITS 200-DAY MOVING AVERAGE

by John Murphy,

Chief Technical Analyst, StockCharts.com

2-YEAR TREASURY YIELD SPIKES ... On Friday, I showed the U.S. Dollar Index bouncing from chart support at its December low, and suggested that a dollar bounce could cause short-term profit-taking in stocks and commodities. We saw some of that on Monday morning as stocks and commodities started the week...   READ MORE 

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DOLLAR INDEX REACHES CHART SUPPORT AT ITS DECEMBER LOW -- DROP IN EURO MAY PUT SOME SHORT-TERM DOWNSIDE PRESSURE ON STOCKS AND COMMODITIES -- TWO-THIRDS OF NYSE STOCKS ARE ABOVE 200-DAY AVERAGES WHICH IS BULLISH

by John Murphy,

Chief Technical Analyst, StockCharts.com

DOLLAR INDEX BOUNCES OFF DECEMBER LOW... The US Dollar Index peaked in March and has since fallen to the lowest level in six months. The falling dollar has coincided with rallies in stocks and commodities over the last three months. That's why it's worth noting that...   READ MORE 

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FINANCE SECTOR SHOWS RELATIVE STRENGTH FOR A DAY - OIL LEADS ENERGY SECTOR REBOUND - RETAILERS KEEP MARKET ADVANCE IN CHECK - STOCKS BENEFIT FROM WEAKNESS IN BONDS AND DOLLAR - ANALYZING THE AD LINE AND AD VOLUME LINE

by John Murphy,

Chief Technical Analyst, StockCharts.com

FINANCIALS LEAD THE MARKET HIGHER... Link for todays video. After commenting about relative weakness in the finance sector just yesterday, the Financials SPDR (XLF) perked up with a nice bounce on Thursday. This bounce keeps the medium-term uptrend alive and reinforces support from the late May lows (11.5). Despite...   READ MORE 

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CONSOLIDATION BREAKOUTS TURN INTO FIRST SUPPORT LEVELS - FINANCE AND CONSUMER DISCRETIONARY SECTORS START TO LAG - BIOTECHS BUCK THE SELLING PRESSURE - AMGEN AND GENZYME BREAK RESISTANCE - VIX CONTINUES TO TREND LOWER - NET NEW HIGHS EXPAND

by John Murphy,

Chief Technical Analyst, StockCharts.com

STOCKS PULL BACK ... Link for todays video. After a four day surge that produced consolidation breakouts, the major index ETFs pulled back on Wednesday. Chart 1 shows the S&P 500 ETF (SPY) with a flag/wedge breakout on Monday. With a ~6% surge the prior four days, some...   READ MORE 

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STOCKS AND COMMODITIES CONTINUE THEIR SPRING RUN -- THE S&P 500 TRADES OVER ITS 200-DAY AVERAGE FOR THE FIRST TIME IN A YEAR -- DOW INDUSTRIALS AND TRANSPORTS NEAR TESTS OF THEIR 200-DAY LINES

by John Murphy,

Chief Technical Analyst, StockCharts.com

S&P 500 TRADES OVER 200-DAY AVERAGE ... The market is off to a very strong start and a lot of market indexes and groups are either testing or breaking through their 200-day moving averages. The most important of all is the S&P 500 which is the standard...   READ MORE 

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MONEY ROTATING OUT OF TREASURY BONDS AND THE DOLLAR HAS MOVED INTO STOCKS AND COMMODITIES -- THAT'S A SIGN OF GROWING OPTIMISM -- DON'T ABANDON ALL BOND CATEGORIES -- OUTSIDE OF TREASURIES, MOST FIXED INCOME CATEGORIES ARE RISING

by John Murphy,

Chief Technical Analyst, StockCharts.com

ROTATION INTO RISKIER ASSETS IS A GOOD SIGN... Although it's no surprise to read that some asset class rotations have been going on all spring, it's still helpful to see what's happening graphically. And to try to understand why it's happening. From...   READ MORE 

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SPY STALLS AT RESISTANCE - QQQQ REMAINS ABOVE 40-WEEK AVERAGE - GAS CONTINUES TO RISE - STRENGTH IN OIL BOOSTS ENERGY SECTOR - GOLD AND SILVER MOVE HIGHER - GOLD IS TOP INTER-MARKET PERFORMER FOR 2009

by John Murphy,

Chief Technical Analyst, StockCharts.com

RANGE BOUND MARKET... Link for todays video. May has been the month of churn in the stock market so it seems appropriate to step back and look at the bigger picture. After a huge advance from early March until early May, a little churning is actually quite normal. The bears...   READ MORE 

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DARK CLOUDS AND SHOOTING STARS TAKE SHAPE - REVIEWING TUESDAYS SURGE ON LOW VOLUME - NASDAQ AND NY COMPOSITE BATTLE THEIR 200-DAY AVERAGES - CONSUMER DISCRETIONARY SECTOR SHOWS RELATIVE WEAKNESS - BONDS PLUNGE ON SUPPLY CONCERNS

by John Murphy,

Chief Technical Analyst, StockCharts.com

DARK CLOUDS OVERHEAD... Link for todays video. The S&P 500 ETF (SPY) and the Dow Diamonds (DIA) opened strong and closed weak on Wednesday. Charts 1 and 2 show both giving back more than half of yesterdays big gain with long red candlesticks. In fact, SPY and DIA...   READ MORE 

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SURGE IN CONSUMER CONFIDENCE KEEPS SPRING UPTREND INTACT -- FOREIGN STOCKS ARE LEADING US HIGHER BECAUSE OF THE FALLING DOLLAR -- THAT'S ESPECIALLY HELPFUL FOR FOR FOREIGN ETFS LIKE CANADA

by John Murphy,

Chief Technical Analyst, StockCharts.com

SHORT-TERM STOCK SUPPORT HOLDS... A big surge in consumer confidence has gotten stocks off to a strong start in the holiday-shortened week. Charts 1 and 2 show the Dow Industrials and the S&P 500 trading more than 2% higher in early afternoon trading. Today's bounce has...   READ MORE 

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PRICE CHANNELS ARE BEARISH FOR BONDS AND THE DOLLAR, BUT ARE BULLISH FOR PRECIOUS METALS -- FOR A BULL MARKET IN STOCKS TO OCCUR, THE 40-WEEK MOVING AVERAGE NEEDS TO TURN UP -- THE 40-WEEK PRICE CHANNEL IS TOO HIGH FOR THAT TO HAPPEN IN THE NEAR FUTURE

by John Murphy,

Chief Technical Analyst, StockCharts.com

50-DAY PRICE CHANNEL IS BEARISH FOR BONDS ... On Tuesday, I wrote about using 20-day price channels (or four weeks) for short-term trading purposes. I also suggested that price channels could be used in any market. Take bonds for example. Chart 1 applies 20-day channels to the 20- Year Treasury Bond...   READ MORE 

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STOCKS MOVE LOWER XLE FAILS AT RESISTACNE OIH GAPS DOWN BONDS DECLINE ON SUPPLY CONCERNS RATES SURGE XHB TURNS UNDERPERFORMER DOLLAR GETS WHACKED AGAIN GOLD AND SILVER SHINE

by John Murphy,

Chief Technical Analyst, StockCharts.com

BROAD DECLINE ON WALL STREET... Link for todays video. Stocks moved lower on Thursday after S&P warned that they may cut their outlook for the United Kingdoms sovereign debt. While it is certainly a plausible excuse, I have my doubts. As a credit rating agency, S&P...   READ MORE 

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NASDAQ BOUNCES ON LOW VOLUME AN OUTSIDE REVERSAL DAY FOR RETAIL HOLDRS DOLLAR AND VIX FALL TOGETHER INFLATION PROTECTED BONDS HINT AT INFLATION GOLD ETF TRACES OUT LARGE INVERSE HEAD-AND-SHOULDERS PATTERN

by John Murphy,

Chief Technical Analyst, StockCharts.com

LOW VOLUME BOUNCE ... Stocks surged on Monday and recorded small gains on Tuesday to start the week with two up days. Despite these gains, Charts 1 and 2 show Nasdaq and NYSE volume below average on both days. Keep in mind that this weeks bounce was in response to the...   READ MORE 

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HOW TO USE THE 20-DAY PRICE CHANNEL FOR SHORT-TERM TRADING -- S&P 500 REMAINS BELOW 200-DAY AVERAGE

by John Murphy,

Chief Technical Analyst, StockCharts.com

20-DAY PRICE CHANNELS... Here's a simple trading tool that you might want to incorporate into your work. It's called the "Price Channel" and you'll find it under the Overlays list below moving averages and Bollinger bands. One of the most popular versions...   READ MORE 

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HOME DEPOT REVERSES YESTERDAY'S GAINS ON BAD HOUSING NEWS -- STOCKS TRY TO CONTINUE BOUNCE -- S&P 500 TRADING BETWEEN 20-AND 200-DAY MOVING AVERAGES

by John Murphy,

Chief Technical Analyst, StockCharts.com

SELLS OFF ON BAD HOUSING DATA... An good earnings report in Home Depot was quickly erased by some negative news on housing. The 15-minute bars in Chart 1 show the schizophrenic action over the last two days. The nation's largest home improvement stock has fallen 5% to make...   READ MORE