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DOWNSIDE CORRECTION HAS STARTED AS OVERBOUGHT MARKET PULLS BACK FROM JANUARY PEAK AND 200-DAY AVERAGE -- SHORT-TERM MCCLELLAN BREADTH OSCILLATOR TURNS NEGATIVE -- THE LONGER-RANGE SUMMATION INDEX, HOWEVER, HITS FIVE-YEAR HIGH

by John Murphy,

Chief Technical Analyst, StockCharts.com

MARKET FAILS TEST OF JANUARY HIGH ... I started the week on Monday with the headline that "Upside price and time targets had been hit" and added that overbought readings suggested that the market was vulnerable to profit-taking. The NYSE Composite Index had just reached overhead resistance at its...   READ MORE 

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BREADTH INDICATORS REFLECT BROAD SELLING DOWNSIDE VOLUME PICKS UP PACE A LOOK AT THE PRIOR BEAR MARKET HOW THE CURRENT RALLY STACKS UP LOOKING AHEAD SEVEN MONTHS

by John Murphy,

Chief Technical Analyst, StockCharts.com

NASDAQ DECLINES ON HIGH VOLUME ... Breadth indicators are one of my first ports of call after a big market move. With the major indices moving sharply lower on Wednesday, the breadth statistics can tell us if this decline was broad-based or relatively narrow. Charts 1 and 2 show Volume, Net...   READ MORE 

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STOCKS DECLINE WITH BROAD SELLING GAPS REMAIN UNFILLED SMALL AND MID CAPS LEAD LOWER DEFENSIVE SECTORS OUTPERFORM IN MAY DOLLAR HITS SUPPORT AREA BONDS GET OVERSOLD BOUNCE 10-YEAR NOTE YIELD HITS RESISTANCE

by John Murphy,

Chief Technical Analyst, StockCharts.com

BROAD SELLING HITS WALL STREET ... The market declined sharply on Wednesday with broad selling pressure. All of the major indices were sharply lower. All nine sectors were lower with five declining over 3%. Chart 1 shows the S&P 500 hitting resistance at its January high last week and...   READ MORE 

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COMMODITY RALLY MAY BE TIRING NEAR JANUARY HIGH -- COPPER BACKS OFF FROM 200-DAY AVERAGE -- HOMEBUILDERS STALL NEAR JANUARY HIGH -- SO DO EAFE ISHARES -- EMERGING MARKETS ARE OVERBOUGHT -- MONEY IS MOVING BACK INTO PRECIOUS METALS

by John Murphy,

Chief Technical Analyst, StockCharts.com

CRB INDEX TESTS JANUARY HIGH ... On Friday May 1, I wrote a message headlined: "The S&P 500 and CRB Index appear to be forming head and shoulder bottoms". A test of that bottoming theory would be a rally to their January highs followed by a pullback...   READ MORE 

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UPSIDE PRICE AND TIME TARGETS HAVE BEEN REACHED -- OVERBOUGHT READINGS ALSO SUGGEST THAT MARKET IS VULNERABLE TO SOME PROFIT-TAKING

by John Murphy,

Chief Technical Analyst, StockCharts.com

MAJOR INDEXES REACH JANUARY HIGH ... When this rally first started during March, I suggested that it could reach the January peak which would also bring some of the major stock indexes closer to their 200-day moving averages. On April 3, I added a time target into early May. That was...   READ MORE 

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LIST OF CYCLICAL STOCK LEADERS -- NATURAL GAS STOCKS LEAD ENERGY COMPLEX HIGHER AS THE COMMODITY BOTTOMS -- MARKET MAY BE LOSING SEMICONDUCTOR LEADERSHIP BUT BENEFITS FROM BANK REBOUND -- TUMBLING DOLLAR GIVES BOOST TO COMMOTIES

by John Murphy,

Chief Technical Analyst, StockCharts.com

LIST OF CYCLICAL STOCKS ... On Monday, I wrote an article showing that the Morgan Stanley Cyclical Index (CYC) had led the stock rally since March, and suggested that was a good sign for the market and the economy. One reader asked what stocks were included in the index. Chart 1...   READ MORE 

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QQQQ DECLINES AFTER STRONG OPEN MONEY ROTATES INTO DEFENSIVE SECTORS THREE HEALTHCARE LEADERS NASDAQ IS LAGGING THE NY COMPOSITE SMALL-CAPS ARE LAGGING LARGE-CAPS NET NEW HIGHS FAIL TO IMPRESS

by John Murphy,

Chief Technical Analyst, StockCharts.com

SELLERS GREET STRONG OPEN... The Nasdaq 100 ETF (QQQQ) signaled that something was amiss when it opened strong and immediately moved lower for the second day running. Chart 1 shows the Nasdaq 100 ETF (QQQQ) with 15 minute candlesticks over the last four days. QQQQ opened strong with a gap...   READ MORE 

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FINANCIALS LEAD MARKET HIGHER OIL AND GASOLINE BREAK CONSOLIDATION PATTERNS XLE AND OIH FOLLOW ENERGY PRICES HIGHER GOLD CHALLENGES RESISTANCE AGAIN USING RSI TO IDENTIFY PULLBACKS

by John Murphy,

Chief Technical Analyst, StockCharts.com

BANKS SURGE AHEAD OF STRESS TEST... With news leaking out all over the place, financials were sharply higher ahead of Thursday's stress test results. Officially, the results of the stress test are to be announced on Thursday. Unofficially, Bloomberg and other outlets have been reporting preliminary results over...   READ MORE 

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SECTOR CHARTS DON'T HAVE TO LOOK ALIKE -- USING WEEKLY AND MONTHLY MACD SIGNALS -- NYSE ADVANCE DECLINE LINE BREAKS OUT BUT DOESN'T RULE OUT RIGHT SHOULDER PULLBACK -- WHATEVER YOU DO, DO IT SLOWLY

by John Murphy,

Chief Technical Analyst, StockCharts.com

SECTORS CHARTS DON'T HAVE TO LOOK ALIKE... One of our readers asked if the sectors that make up the S&P 500 need to be forming the same price pattern. The answer is no they don't. Some sectors usually rise faster than the S&...   READ MORE 

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MARKET STARTS THE WEEK ON A STRONG NOTE -- THE FACT THAT ECONOMICALLY-SENSITIVE CYCLICAL STOCKS HAVE LED THE RALLY SINCE MARCH IS A POSITIVE SIGN FOR THE MARKET AND THE ECONOMY

by John Murphy,

Chief Technical Analyst, StockCharts.com

CYCLICALS LEAD S&P 500 HIGHER... The stock market is starting the week on a strong note. Chart 1 shows the S&P 500 trading 2% higher and reaching the highest level in four months. Even more impressive is the action in the Morgan Stanley Cyclicals Index (CYC)...   READ MORE 

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THE S&P 500 AND THE CRB INDEX APPEAR TO BE FORMING HEAD AND SHOULDERS BOTTOMS -- A PULLBACK INTO A RIGHT SHOULDER COULD START DURING MAY -- THE NASDAQ COMPOSITE INDEX TESTS ITS 200-DAY LINE

by John Murphy,

Chief Technical Analyst, StockCharts.com

FIRST THE S&P 500... On Friday April 17, I wrote about the possibility that the S&P 500 could be forming a "head and shoulders" bottom. I based that bullish view on the shape of its pattern since last November. Chart 1 shows the potential...   READ MORE 

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SEMI HOLDRS SURGE TO 200-DAY INTEL, TEXAS INSTRUMENT AND APPLIED MATERIALS CHALLENGE 200-DAY TOO UTILITIES CONTINUE TO SHOW RELATIVE WEAKNESS CAREFUL WITH OSCILLATORS IN A STRONG TREND TREND FOLLOWING WITH MOVING AVERAGE ENVELOPES

by John Murphy,

Chief Technical Analyst, StockCharts.com

SEMIS SURGE TOWARDS 200-DAY ... Chart 1 shows the Semiconductor HOLDRS (SMH) challenging its 200-day moving average with a move above 20 today. On the price chart, SMH broke above resistance from the December-February highs and then started working its way higher. The magenta trendlines show a channel of sorts taking...   READ MORE 

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SMALL-CAPS LEAD BROAD ADVANCE BONDS BREAK SUPPORT RATES BREAK RESISTANCE DOLLAR INDEX FORMS RISING FLAG EURO ETF BREAKS WEDGE TRENDLINE COMMODITY ETFS BOUNCE GOLD HITS TRENDLINE RESISTANCE

by John Murphy,

Chief Technical Analyst, StockCharts.com

SMALL-CAPS LEAD BROAD ADVANCE... Stocks surged ahead of today's Fed meeting and held their gains after the policy statement. There were no surprises from of the Fed as the FOMC left the Fed Funds target at 0-.25%. Small-caps led the advance with the Russell 2000 ETF (IWM)...   READ MORE 

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PERCENT OF NYSE STOCKS ABOVE THEIR 200-DAY AVERAGE IS TESTING MAJOR DOWN TRENDLINE -- THE PERCENT OF NYSE STOCKS ABOVE THEIR 50-DAY LINES IS OVERBOUGHT -- ROTATION OUT OF TREASURY BONDS AND INTO HIGH YIELD CORPORATE BONDS IS A SIGN OF CONFIDENCE

by John Murphy,

Chief Technical Analyst, StockCharts.com

% NYSE STOCKS ABOVE 200 DAY MA TESTS DOWN TRENDLINE ... On April 16, I charted showed the improvement in the percent of NYSE stocks trading over their 200-day moving averages. Chart 1 shows that measure bottoming during the fourth quarter and recently moving up to the highest level in six months....   READ MORE 

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FOREIGN STOCKS BACK OFF FROM MAJOR RESISTANCE BARRIERS WHICH MAY CAP SPRING RALLY -- OVERSOLD VIX MAY START BOUNCING FROM CHART SUPPORT -- BOLLINGER BANDS HINT AT STOCK WEAKNESS

by John Murphy,

Chief Technical Analyst, StockCharts.com

EMERGING MARKETS BACK OFF FROM 200-DAY AVERAGE... One of the ways to help determine the staying power of the current global rebound is to track the performance of the world's strongest markets. That happens to be in the emerging market area. Judging from the fact that several of...   READ MORE 

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MARKET UPTREND STILL INTACT -- NASDAQ IS CLOSEST TO ITS 200-DAY AVERAGE -- HOUSING STOCKS ARE LEADING THE WAY HIGHER -- REFLATION TRADE FAVORS COMMODITY ASSETS -- SOME BOND PRICES ARE RISING

by John Murphy,

Chief Technical Analyst, StockCharts.com

NASDAQ NEARS 200-DAY LINE ... The market bounce that started on March 9 remains intact. As has been the case all year, the technology-dominated Nasdaq market is leading the market higher. Chart 1 shows the Nasdaq Composite Index having cleared its January high and nearing a test of its 200-day moving...   READ MORE 

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QQQQ HOLDS BREAKOUT DEFENSIVE SECTORS LAGGING GOLD BOUNCES OFF SUPPORT GOLD MINERS SETS TESTS 200-DAY - GOLD ADVANCES AS DOLLAR FALLS UUP FORMS RISING WEDGE FXE FORMS FALLING WEDGE DOLLAR STILL UP FOR THE YEAR

by John Murphy,

Chief Technical Analyst, StockCharts.com

A TALE OF TWO MARKETS... Life revolves around the January highs for many stocks, indices and ETFs. Those trading above their January highs are leaders showing relative strength. Those trading below their January highs are the laggards showing less strength. Chart 2 shows the Nasdaq 100 ETF (QQQQ) trading above...   READ MORE 

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DOW GIVES UP EARLY GAINS AND ESTABLISHES RESISTANCE AT 8000 DIA LOSES MOMENTUM OIL SERVICE HOLDRS CHALLENGE RESISTANCE NABORS AND BJ SERVICES SURGE ON BIG VOLUME SEMI HOLDRS HITS THE 200-DAY INTEL AND KLA-TENCOR MOVE HIGHER ON GOOD VOLUME

by John Murphy,

Chief Technical Analyst, StockCharts.com

DOW FALLS SHARPLY IN FINAL HOUR... Led by weakness in financials, the Dow Industrials gave up its afternoon gains to close with a modest loss on the Wednesday. Chart 1 shows the Average trading at around 8040 in the late afternoon before plunging below 7900 in the final hour of...   READ MORE 

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DOWNSIDE BREADTH HITS AN EXTREME - QQQQ FORMS RISING WEDGE ON 30-MINUTE CHART IWM RETRACES 62% OF MONDAY'S DECLINE QQQQ REMAINS OVERBOUGHT ON DAILY CHART IWM HITS CHANNEL TRENDLINE

by John Murphy,

Chief Technical Analyst, StockCharts.com

SELLING PRESSURE INTENSIFIES... Even though the major-index ETFs (QQQQ,SPY,IWM, DIA) are in clear uptrends, they are also overbought and ripe for a correction or a consolidation. As noted on Monday, prior pullbacks were limited to two days as stocks recovered quite quickly. Monday's decline was sharp,...   READ MORE 

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S&P 500 REMAINS ABOVE ITS 20-DAY AVERAGE KEEPING THE SHORT-TERM UPTREND INTACT -- THREE WAYS TO USE BOLLINGER BANDS ON DAILY CHARTS

by John Murphy,

Chief Technical Analyst, StockCharts.com

USING BOLLINGER BANDS ON DAILY CHARTS... Stocks bounced back from Monday's selloff. As a result, it's difficult to decide if the rally off the March 9 bottom is over or just pulling back a bit. If it does pullback, how far? One valuable tool to help...   READ MORE 

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SPY VOLUME SHRINKS AN EXTREME FOR STOCKS ABOVE THEIR 50-DAY GLD BOUNCES OFF THE 200-DAY MOVING AVERAGE OIL AND ENERGY STOCKS LAG THE BROADER MARKET DOLLAR ETF RECAPTURES THE 50-DAY

by John Murphy,

Chief Technical Analyst, StockCharts.com

SPY EXTENDS HIGHER ON LOWER VOLUME... Despite a clear uptrend since early March, the current rally in SPY is getting stretched as volume declines and overbought conditions extend. Chart 1 shows the S&P 500 ETF (SPY) with a 28-day rally since early March. All told, SPY is up...   READ MORE 

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MCCLELLAN SUMMATION INDEX IS A LONG-TERM BREATH MOMENTUM INDICATOR THAT HAS REACHED A TWO-YEAR HIGH -- WHY THE MARKET COULD BE FORMING A BULLISH HEAD AND SHOULDERS BOTTOM

by John Murphy,

Chief Technical Analyst, StockCharts.com

MCCLELLAN OSCILLATOR IS STILL POSITIVE ... The McClellan Oscillator is a short- to intermediate-term momentum breadth indicator. It's calculated each day by taking the difference between the 39-day and 19-day exponential moving averages of the number of net advances on the NYSE (see Chart School for a more in-depth...   READ MORE 

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LONG-TERM INDICATORS SUGGEST THAT A BOTTOM MAY BE FORMING -- OVER THE SHORT-RUN, HOWEVER, A LOT OF MARKET MEASURES AND STOCKS ARE UP AGAINST 200-DAY AVERAGES WHERE THEY MAY RUN INTO RESISTANCE

by John Murphy,

Chief Technical Analyst, StockCharts.com

A MARKET BOTTOM IS A PROCESS, NOT AN EVENT... Global stock markets have enjoyed a nice rally since mid-March. Most U.S. stock indexes have rallied more than 20%. Some foreign stock indexes (like China) have done even better. Certain commodities (like copper) have also enjoyed a strong runup on...   READ MORE 

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A LOT OF LEADING GROUPS HAVE REACHED OVERHEAD RESISTANCE BARRIERS INCLUDING THE NASDAQ, SEMICONDUCTORS, BASIC MATERIALS, AND CONSUMER DISCRETIONARY -- THAT SUGGESTS THAT SPRING RALLY MAY BE NEAR COMPLETION

by John Murphy,

Chief Technical Analyst, StockCharts.com

NASDAQ AND CHIPS UP AGAINST RESISTANCE ... The rally from March 9 has reached a phase where further advances are going to be more difficult. That's because a number of groups that have led the spring rally have reached overhead resistance barriers. Technology is a good example. I'...   READ MORE 

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AUSTRALIAN DOLLAR, COPPER, AND CHINA ARE RALLYING TOGETHER -- SO IS PLATINUM -- DOLLAR BEAR FUND IS RISING

by John Murphy,

Chief Technical Analyst, StockCharts.com

CHINA ISHARES AND AUSSIE DOLLAR TEST 200-DAY AVERAGES... A week ago Friday I showed China iShares testing important resistance barriers. That's still the case. Chart 1 shows China iShares (FXI) testing not only its 200-day average, but its January high around 32. That's an important test...   READ MORE 

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BANKS LEAD MARKET HIGHER - REIT ETF BREAKS 50-DAY - PUBLIC STORAGE AND DUKE REALTY BREAK MARCH HIGHS - LEADING AND LAGGING SECTORS - BULLISH PERCENT INDEX LEADERS - DIA CHALLENGES BROKEN SUPPORT

by John Murphy,

Chief Technical Analyst, StockCharts.com

FINANCIALS LEAD THE CHARGE... Stocks opened strong this morning with financials leading the way higher. Chart 1 shows 60-minute bars for the Financials SPDR (XLF) over the last 6-7 weeks. Notice that XLF surged above 9.5 in mid March and then consolidated for around three weeks. As the red...   READ MORE 

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SPY HITS RESISTANCE AS MACD RISES IWM AND QQQQ HOLD THEIR GAPS BBBY SURGES ON HUGE VOLUME RETAIL SPDR HITS 200-DAY TECHS AND SMALL-CAPS SHOW LEADERSHIP STOCKS TO WATCH (AGILENT, FLOUR, KING PHARMA AND APPLIED MATERIALS)

by John Murphy,

Chief Technical Analyst, StockCharts.com

RESISTANCE COMING INTO PLAY... While this rally may have further room to run, a breather may be in order as resistance levels come into play on a number of charts. As noted last week, stocks became overbought after big advances in March. There are two ways to alleviate overbought conditions:...   READ MORE 

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MARKET PULLS BACK FROM SHORT-TERM OVERBOUGHT CONDITION -WEEKLY AND MONTHLY INDICATORS, HOWEVER, SUGGEST THERE'S MORE UPSIDE TO COME -- THAT'S ALSO TRUE OF THE NASDAQ AND FINANCIALS

by John Murphy,

Chief Technical Analyst, StockCharts.com

CCI IN OVERBOUGHT TERRITORY ... The stock market is undergoing its second straight day of selling. One of the reasons for the pullback is short-term overbought readings in some of our more sensitive momentum indicators. Chart 1, for example, shows the Commodity Channel Index (CCI) reaching overbought territory above 100 and...   READ MORE 

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REVIEW OF 13-34 EMA COMBINATION -- DAILY COMBO TURNS POSITIVE -- WEEKLIES ALSO IMPROVE -- MONTHLY MACD HISTOGRAM SHOWS IMPROVEMENT -- UPSIDE TARGET IS A TEST OF 2009 HIGH BY MAY -- AUSTRALIAN DOLLAR RALLIES WITH COMMODITIES

by John Murphy,

Chief Technical Analyst, StockCharts.com

DAILY EMA COMBO TURNS POSITIVE... I've received a number of requests to review the current position of the 13-34 exponential moving averages (EMAs). As you probably know, I place a lot of importance on that combination because of its strong track record over the years. I apply the...   READ MORE 

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QQQQ HITS NEW HIGH FOR 2009 DOW CHALLENGES 8000 DOW TRANSPORTS SHRUG OFF SURGING OIL REIT ISHARES TESTS CONSOLIDATION RESISTANCE

by John Murphy,

Chief Technical Analyst, StockCharts.com

QQQQ BREAKS 2009 HIGHS... News from around the globe brought buyers out in force on Thursday. First, the Financial Accounting Standards Board (FASB) announced new flexibility in mark-to-market accounting. Second, the G20 announced plans worth over $1 trillion to finance global trade and assist troubled countries. Chart 1 shows the...   READ MORE 

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DOLLAR FALLS AS STOCKS RISE EURO SURGES AFTER RATE CUT YEN DECLINES AGAINST THE DOLLAR WEAK DOLLAR DOES NOT HELP GOLD OTHER COMMODITIES RISE ON DOLLAR WEAKNESS BASE METALS ETF CHALLENGES JANUARY HIGHS

by John Murphy,

Chief Technical Analyst, StockCharts.com

DOLLAR FALLS SHARPLY... The Dollar fell sharply as the appetite for risk surged on Thursday. Chart 1 shows the US Dollar Bullish ETF (UUP) in green with the S&P 500 ETF (SPY) in black. Notice how the Dollar advanced as stocks swooned in the first two months of...   READ MORE 

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NET NEW HIGHS APPROACH POSITIVE TERRITORY DIA BATTLES 50-DAY MOVING AVERAGE XLF AND RKH FORM CONSOLIDATIONS GLD PULLS BACK AFTER BIG SURGE VM WARE CHALLENGES RESISTANCE MEMC TESTS BREAKOUT BRISTOL MEYERS SURGES ON BIG VOLUME

by John Murphy,

Chief Technical Analyst, StockCharts.com

NET NEW HIGHS APPROACHING ZERO... Net New Highs can help distinguish between bear market rallies and sustainable advances. First, let's review the Net New Highs indicator. I apply a 10-day simple moving average to smooth the data series. The market has a bullish bias when there are more...   READ MORE 

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AFTER RISING MORE THAN 20% DURING MARCH, MARKET INDEXES ARE ENTITLED TO A PULLBACK -- FIBONACCI RETRACEMENT LINES SHOW POTENTIAL SUPPORT LEVELS

by John Murphy,

Chief Technical Analyst, StockCharts.com

RETRACEMENT SUPPORT LEVELS... The market has risen more than 20% since March 9 and is certainly entitled to a pullback. And it got one today. The good news is that the day's decline occurred on relatively light volume. While most groups fell, the biggest selling was seen in...   READ MORE 

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FINANCIALS LEAD STOCKS LOWER AS 50-DAY AVERAGES ARE BEING BROKEN -- TREASURY BONDS, THE DOLLAR, AND GOLD ARE BOUNCING -- MOST OTHER COMMODITIES ARE DOWN

by John Murphy,

Chief Technical Analyst, StockCharts.com

SUPPORT LEVELS ON HOURLY CHARTS... Global stocks are having a bad day. The S&P 500 is down -3.5% and is trading below its 50-day moving average. A close below that line would be a setback for the March rally . The Dow and the NYSE Composite Index are...   READ MORE 

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USING PERFORMANCE CHARTS TO SPOT INDUSTRY GROUP LEADERS -- 2009 LEADERS ARE INTERNET, SEMICONDUCTORS, OIL SERVICE, GOLD & SILVER, RETAIL, AND HOUSING -- ROTATION MODEL SHOWS IMPROVEMENT -- DROP IN EURO CAUSES SOME PROFIT-TAKING IN STOCKS AND COMMODITIES

by John Murphy,

Chief Technical Analyst, StockCharts.com

PERFORMANCE CHARTS... One of our readers asked what tools we use to spot sector and industry group leaders. One of the easiest ways is to use the Performance Charts on our main menu. By clicking on that choice, you can chart group performance for U.S. stock indexes, commodity groups,...   READ MORE 

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CONSUMER DISCRETIONARY LEADS MARKET HIGHER RETAIL SPDR CLOSES IN ON 200-DAY SOFTWARE HOLDRS AND NETWORKING ISHARES TRACE OUT DOUBLE BOTTOMS SEMICONDUCTOR HOLDRS AND INTERNET ETF BREAK TO NEW HIGHS QQQQ TURNS POSITIVE FOR 2009

by John Murphy,

Chief Technical Analyst, StockCharts.com

CONSUMER DISCRETIONARY SPDR SURGES OVER 4% ... Led by strength in retail and transports, the Consumer Discretionary SPDR (XLY) surged 4.61% on Thursday. Chart 1 shows XLY up almost 29% in the last 13 days. This surge compares to the advance from late November until early December - when XLY...   READ MORE 

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FED PUSHES YIELDS LOWER TREASURY NOTE ETF BREAKS RESISTANCE TREASURY BOND ETF REMAINS RANGE BOUND INFLATION-PROTECTED BONDS CONTINUE TO OUTPERFORM - YEN GIVES UP LAST WEEK'S GAINS

by John Murphy,

Chief Technical Analyst, StockCharts.com

QE AND BONDS YIELDS... Bonds surged after the Fed announced its plan to purchase some $300 billion of long-term Treasuries last Wednesday. This quantitative easing (QE) is designed to push Treasuries higher and yields lower. Remember, yields move down as Treasuries move up. Chart 1 shows the relationship between the...   READ MORE 

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STOCKS RIDE THE ROLLERCOASTER SPY STALLS IN RESISTANCE ZONE QQQQ FORMS SPINNING TOP CANDLESTICK FINANCIAL ETFS REMAIN OVERBOUGHT REITS LAG THE MARKET DOLLAR TAKES A PUNCH GOLD BOUNCES ON DOLLAR WEAKNESS

by John Murphy,

Chief Technical Analyst, StockCharts.com

WILD DAY FOR STOCKS... Stocks went on a wild ride Wednesday. The S&P 500 started strong with a 2% surge in the first hour, but weakened and declined sharply into the afternoon. A final-hour surge pushed the index back into positive territory to end with a modest gain...   READ MORE 

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POSITIVE CHART DIVERGENCES SHOW MARKET IMPROVEMENT -- SECTOR ROTATIONS SHOW CONSUMER DISCRETIONARY STOCKS OUTPLACING STAPLES -- STOCKS SEE MINOR PROFIT-TAKING ON LOWER VOLUME

by John Murphy,

Chief Technical Analyst, StockCharts.com

POSITIVE DIVERGENCES... I made mention yesterday of the fact that several of our technical indicators were looking more positive. I'm referring primarily to "positive divergences" that have shown up during the most recent first quarter price drop. Here are two that I've shown before....   READ MORE 

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TREASURY PLAN TO BUY TOXIC ASSETS SPARKS STRONG STOCK DAY LED BY FINANCIALS AND HOMEBUILDERS -- COPPER AND OIL LEAD COMMODITY RALLY EASING DEFLATION FEARS -- CHINA AND EMERGING MARKETS SHOW UPSIDE LEADERSHIP

by John Murphy,

Chief Technical Analyst, StockCharts.com

S&P 500 CLEARS 800 RESISTANCE AND 50-DAY AVERAGE... The Treasury's trillion dollar plan for buying bank toxic assets, combined with a strong February housing figure, sparked a strong day in both stocks and commodity markets. Financials and energy were the two strongest groups. Homebuilders and REITS...   READ MORE