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RELATIVE STRENGTH IN LARGE CAPS -- S&P 500 EQUAL WEIGHT ETF LAGGING -- S&P 100 ETF STALLS AT RESISTANCE -- RSP HITS KEY RETRACEMENT -- IDENTIFYING CORRECTIONS -- USING OSCILLATORS FOR OVERSOLD BOUNCES -- FINDING MORE SIGNALS

by John Murphy,

Chief Technical Analyst, StockCharts.com

LARGE CAPS CONTINUE TO LEAD... Today's Market Message was written by Arthur Hill. John Murphy will be back tomorrow. - Editor Bigger is better when it comes to relative strength in the current market environment. John Murphy has been talking about leadership in large technology stocks and the...   READ MORE 

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NASDAQ 100 HITS NEW HIGH -- ADD SOFTWARE TO THE MARKET LEADER LIST -- ORACLE BREAKS OUT -- MICROSOFT IS PLAYING CATCH UP

by John Murphy,

Chief Technical Analyst, StockCharts.com

NASDAQ 100 IS FIRST INDEX TO HIT NEW HIGH ... To no one's surprise, the Nasdaq 100 was the day's biggest percentage gainer and the first of the major market indexes to overcome its summer high. The NDX is now trading at the highest level in six...   READ MORE 

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MY REPLY TO SOME RECENT FEEDBACK -- ANOTHER LOOK AT GROUP LEADERS INCLUDING INTERNET AND TELECOM HOLDERS -- FINANCIALS AND RETAILERS STILL LOOK WEAK -- BIOTECH AND HIGH TECH STOCKS PUSH NASDAQ 100 TOWARD NEW 2007 HIGH

by John Murphy,

Chief Technical Analyst, StockCharts.com

PLEASE DON'T TAKE THINGS OUT OF CONTEXT... I always enjoy reading the "feedback" comments that I receive from my Market Messages. While they're not always complimentary, they do raise valid questions that I try to address in subsequent messages. In some instances, however, the...   READ MORE 

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DOLLAR TUMBLE CONTRIBUTES TO BULLISH BREAKOUTS IN GOLD AND OTHER COMMODITIES -- CANADA AND LATIN AMERICA BENEFIT FROM RISING COMMODITIES AND FALLING DOLLAR -- A FALLING DOLLAR FUND RISES AS DOLLAR FALLS -- INVERSE MARKET FUNDS SHOULD BE SOLD

by John Murphy,

Chief Technical Analyst, StockCharts.com

FOREIGN CURRENCIES HIT NEW HIGHS AS DOLLAR PLUMMETS ... The last chart I showed on Tuesday was the US Dollar Index hitting a new low. In fact, it's now trading at the lowest level in fifteen years (since 1992). That was a direct side-effect of the Fed's...   READ MORE 

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NASDAQ 100 ETF STALLS NEAR JULY HIGH -- MICROSOFT SHOWS RELATIVE WEAKNESS -- UTILITIES SURGE WITH FED RATE CUT -- PG&E AND EXEL LEAD UTILITIES HIGHER -- HEALTHCARE SPDR RECAPTURES 200-DAY -- MERCK AND SCHERING LEAD HEALTHCARE

by John Murphy,

Chief Technical Analyst, StockCharts.com

QQQQ HITS RESISTANCE AT 50... Today's Market Message was written by Arthur Hill. John Murphy will be back tomorrow. - Editor The Nasdaq 100 ETF (QQQQ) surged with the rest of the market on Tuesday and then stalled around resistance at 50 on Wednesday. Resistance in this area...   READ MORE 

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FED'S BOLD MOVE PUSHES MARKET INDEXES THROUGH RESISTANCE BARRIERS -- DAY'S LEADERS ARE BASIC MATERIALS (INCLUDING GOLD), FINANCIALS, RETAILERS, SMALL CAPS-- LATIN AMERICA LEADS GLOBAL RALLY -- DOLLAR DROPS TO NEW LOW

by John Murphy,

Chief Technical Analyst, StockCharts.com

FINANCIALS SPDR CLEARS 50-DAY LINE ... Yesterday I wrote that one of the things the market needed to regain its footing was for the Financials SPDR (XLF) to clear its 50-day moving average. It did that today in pretty decisive fashion as shown in Chart 1. Equally impressive was the jump...   READ MORE 

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FED CUTS FED FUNDS AND DISCOUNT RATES BY 50 BASIS POINTS -- FINANCIALS LEAD MARKET RALLY -- WEAK DOLLAR PUSHES GOLD TO RECORD HIGH

by John Murphy,

Chief Technical Analyst, StockCharts.com

FED ALSO LOWERS THE DISCOUNT RATE... The Fed gave the market all it wanted and more. Not only did it lower the Fed funds rate by 50 basis points, it lowered the discount rate a similar amount. Not surprisingly, the stock market is reacting very favorably. The Dow is surging...   READ MORE 

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TELECOM HOLDER SHOWS GOOD RELATIVE STRENGTH -- AT&T AND VERIZON ARE THE MAIN HOLDINGS -- ALTHOUGH BOTH HAVE STRONG CHART PATTERNS, VERIZON MAY OFFER THE BETTER VALUE

by John Murphy,

Chief Technical Analyst, StockCharts.com

TELECOM HOLDERS ... In some of my recent messages, I've been highlighting defensive groups like consumer staples, healthcare, energy, and gold. Telecom should also be included in that group. I've written several positive articles on the telecom group over the past two years, with the most recent...   READ MORE 

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COMMODITIES ARE WEEK'S TOP PERFORMER -- NATURAL GAS JOINS ENERGY RALLY -- XTO, APACHE, DEVON, AND NOBLE ARE GAS LEADERS -- EBAY POWERS INTERNET HOLDERS -- WATCHING P&F CHARTS AND MOVING AVERAGES FOR SIGNS OF IMPROVEMENT

by John Murphy,

Chief Technical Analyst, StockCharts.com

COMMODITY ETF TESTING OLD HIGH ... Commodities were the weak's strongest asset class through Thursday. Not surpisingly, the U.S. Dollar was the weakest. That commodity strength is displayed in Chart 1, which shows the DB Commodities Tracking Index Fund (DBC) moving up to challenge its summer highs. The...   READ MORE 

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MUTUAL FUND LEADERS OVER LAST TWO MONTHS ARE ENERGY, GOLD, HEALTHCARE, AND CONSUMER STAPLES -- PROCTER & GAMBLE AND PEPSI HIT NEW HIGHS -- COKE NEARS SIX-YEAR HIGH -- FINANCIAL BOUNCE HELPS MARKET GAIN MORE GROUND

by John Murphy,

Chief Technical Analyst, StockCharts.com

FIDELITY RANKINGS ... Using the Fidelity Carpet, I looked at the rankings of sector mutual funds over the last two months. Not surprisingly, two of the top sectors were energy and gold which reflected strong action in their respective commodities. Arthur Hill and I have been writing a lot of bullish...   READ MORE 

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RISING OIL WEIGHS ON DOLLAR AND AIRLINES -- BEARISH PATTERNS FOR SMH -- A TALE OF TWO GAPS -- IWM REMAINS STYMIED AT 80 -- BIOTECH HOLDRS SURGE -- DNA AND AMGN PUSH BBH HIGHER -- GILEAD BOUNCES OFF 200-DAY

by John Murphy,

Chief Technical Analyst, StockCharts.com

OIL SURGES TO NEW HIGHS ... Today's Market Message was written by Arthur Hill. John Murphy will be back tomorrow. - Editor The U.S. Energy department reported a drop in crude oil supplies and this sparked a rally in black gold. West Texas Intermediate Crude ($WTIC) moved above...   READ MORE 

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NYSE BULLISH PERCENT AND SUMMATION INDEXES ARE STILL IN BEAR TERRITORY -- THREE HEALTHCARE LEADERS WITH GOOD CHART PATTERNS -- CELGENE HITS RECORD HIGH -- STRYKER NEARS 2007 HIGHS -- MEDTRONIC ON VERGE OF BULLISH BREAKOUT

by John Murphy,

Chief Technical Analyst, StockCharts.com

ANOTHER LOOK AT BULLISH PERCENT INDEX ... One of our readers asked me to take a fresh look at the NYSE Bullish Percent Index (BPNYA). The BPNYA is the percent of NYSE stocks that are in point & figure uptrends. I wrote recently that moves below 50% are indicative of a...   READ MORE 

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US DOLLAR IS THREATENING LONG-TERM SUPPORT WHILE XAU INDEX IS CHALLENGING ITS OLD HIGH -- GOLD NEARS TEST OF 2006 HIGH

by John Murphy,

Chief Technical Analyst, StockCharts.com

DOLLAR IS SITTING ON BIG PRECIPICE ... The U.S. Dollar has been weighed down recently by the sharp drop in U.S. interest rates and the near certainty that the Fed will lower the Fed funds rate next week. That puts the greenback at a very dangerous point. Yesterday'...   READ MORE 

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RISING YEN AND VIX STILL THREATEN GLOBAL BULL MARKET -- BREAKDOWN IN BOND YIELDS IS VOTE OF NO CONFIDENCE IN ECONOMY -- INVERSE FUNDS APPEAR TO BE FORMING BOTTOMS -- CHART REASONS WHY THE MARKET BOUNCE HAS PROBABLY ENDED

by John Murphy,

Chief Technical Analyst, StockCharts.com

SIGNS OF YEN BOTTOM THREATEN CARRY TRADE... In times of financial turmoil, we have to stand back and try to determine if major trend changes are taking place. That prevents us from losing our way with short-term market swings. I'm starting off today with a longer-range look at...   READ MORE 

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TERRIBLE JOB NUMBER SINKS STOCKS -- THE OTHER SHOE MAY BE ABOUT TO DROP -- BOND YIELDS PLUNGE AS PRICES RISE -- FALLING DOLLAR KEEPS GOLD STRONG -- WORST GROUPS ARE BROKERS, HOMEBUILDERS, REITS, CHIPS, AND TRANSPORTS

by John Murphy,

Chief Technical Analyst, StockCharts.com

WEAK AUGUST JOBS REPORT IS A STUNNER ... Economists were expecting nonfarm payroll jobs to expand by 110,000 during August. Instead, jobs dropped by 4,000. That's the first monthly loss of jobs in four years. June and July job increases were also reduced. According to Bloomberg, not...   READ MORE 

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GOLD CLOSES BACK OVER $700 AS PRECIOUS METAL STOCKS SURGE -- BARRICK GOLD HITS NEW RECORD -- VOLUME REMAINS LOW AS MARKET WAITS FOR FRIDAY JOB REPORT -- GOOD NEWS FAILS TO BOOST RETAIL STOCKS -- BIOTECHS CONTINUE TO GAIN GROUND

by John Murphy,

Chief Technical Analyst, StockCharts.com

GOLD SURGES ABOVE $700... There are a couple of reasons why gold may have staged a strong rally today. One is a weaker dollar. The dollar fell against most major currencies today. Another is rising energy prices. Gold often follows energy higher since both imply higher commodity inflation. Another factor...   READ MORE 

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GOLD ETF BREAKS OUT TO THE UPSIDE -- GOLD STOCKS ARE FOLLOWING -- BARRICK HITS NEW RECORD -- NEWMONT HITS NEW SUMMER HIGH

by John Murphy,

Chief Technical Analyst, StockCharts.com

GOLD ETF HITS NEW 16-MONTH HIGH ... Earlier in the week I pointed out the the streetTracks Gold Trust (GLD) was nearing a test of its summer high. In today's strong trading, the GLD has not only exceeded its July high but its spring 2007 highs as well. That...   READ MORE 

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RUSSELL 2000 SHOWS RELATIVE WEAKNESS -- FINANCE STILL LAGGING -- DOUBLE TOPS WORKING FOR XLF AND XLY -- WALMART AND KOHLS WEIGH ON RETAIL ETF -- SURGING OIL WEIGHS ON DOW TRANSPORTS -- COMPARING BIOTECH ETFS

by John Murphy,

Chief Technical Analyst, StockCharts.com

SMALL-CAPS AND FINANCE STILL LAGGING... Recent strength in the Nasdaq Composite and the Technology sector has been quite impressive over the last three weeks. However, this strength continues to be overshadowed by relative weakness in the Russell 2000 and the Finance sector. The Russell 2000 represents small-caps, which are the...   READ MORE 

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ENERGY AND TECHS CONTINUE TO LEAD MARKET HIGHER -- NASDAQ COMPOSITE CLEARS ITS 50-DAY AVERAGE -- YAHOO POWERS INTERNET SURGE -- -- TOP ETF GAINERS ARE INTERNET AND OIL SERVICE HOLDERS --GOLD JUMPS $10 AS MOST COMMODITIES RALLY WITH STOCKS

by John Murphy,

Chief Technical Analyst, StockCharts.com

INTERNET HOLDERS JUMP NEAR 4%... Energy and technology led the market higher again today. In fact, the day's strongest ETF was the Internet Holders (HHH) which jumped 3.8%. Chart 1 shows the HHH jumping impressively over its 50-day moving average today. The other three charts show strong...   READ MORE 

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OIL SERVICE STOCKS ARE STRONGEST ENERGY PLAY -- USING A MARKET CARPET TO FIND ENERGY LEADERS -- EARLIER MONTHLY SELL SIGNAL HAS BEEN ERASED -- S&P 500 NEARS TEST OF 50-DAY AVERAGE -- NASDAQ 100 HAS ALREADY CLEARED THAT BARRIER

by John Murphy,

Chief Technical Analyst, StockCharts.com

OIL SERVICE LEADS ENERGY SECTOR... Energy stocks have resumed their role as one of the market's strongest sectors. But there's more to it than that. We can break the energy sector down into three groups to see where the real energy leaders lie. All three lines...   READ MORE 

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NASDAQ 100 IS STILL THE STRONGEST MARKET INDEX -- SOME MORE RECENT QQQQ LEADERS ARE ADOBE, CISCO, AND DELL -- NASDAQ BIOTECH LEADERS INCLUDE BIOGEN IDEC AND CELGENE

by John Murphy,

Chief Technical Analyst, StockCharts.com

NASDAQ 100 IS YEAR'S AND SUMMER'S TOP INDEX... Arthur Hill wrote yesterday about leadership in the Nasdaq 100. Today's first two charts show the same thing, but in a different way. Chart 1 compares the performance of the six major market indexes since the...   READ MORE 

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QQQQ LEADS MARKET REBOUND -- APPLE AND INTEL POWER BIG TECHS -- NOKIA HITS 52-WEEK HIGH -- SEAGATE BREAKS RESISTANCE -- OIL SURGES ON INVENTORY NUMBERS -- BULLISH PERCENT INDICES FOR NDX AND THE DOW

by John Murphy,

Chief Technical Analyst, StockCharts.com

NASDAQ 100 LEADS REBOUND... Today's Market Message was written by Arthur Hill. John Murphy will be back tomorrow. - Editor Large-cap tech stocks led the market higher on Wednesday as the Nasdaq 100 ETF (QQQQ) recovered after Tuesday's drubbing. The ETF surged almost 3% and filled...   READ MORE 

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RECORD DROP IN HOME PRICES AND PLUNGE IN CONSUMER CONFIDENCE SINK STOCKS -- HOMEBUILDERS, FINANCIALS, AND SMALL CAPS LEAD DECLINE -- BOND YIELDS FALL AS VOLATILITY AND THE YEN JUMP

by John Murphy,

Chief Technical Analyst, StockCharts.com

FINANCIALS AND SMALL CAPS FALL THE HARDEST... Tonight's message is largely a repeat of the message I sent this morning. Except that things got even worse as the day wore on. I wrote last week that one of the ways to tell if the market rebound had any...   READ MORE 

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MORE BAD NEWS ON HOUSING MAY HAVE ENDED RALLY ATTEMPT AS FINANCIALS, HOMEBUILDERS, AND SMALL CAPS LEAD MARKET LOWER -- S&P 500 IS IN DANGER OF SLIPPING BACK BELOW ITS 200-DAY AVERAGE

by John Murphy,

Chief Technical Analyst, StockCharts.com

RECORD DROP IN HOME PRICES... The housing situation just keeps getting worse. The market lost some ground yesterday on news that the unsold inventory of homes was at a sixteen year high. Today's news that the price of homes fell by a record amount in the second quarter...   READ MORE 

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MARKET RALLY CONTINUES, BUT ON LOW VOLUME -- BOND YIELDS STAY FLAT WHILE T-BILL RATE JUMPS

by John Murphy,

Chief Technical Analyst, StockCharts.com

WHERE'S THE VOLUME... Friday's higher prices continued the market rally that started the previous Thursday. The three charts below show major market ETFs all back above their 200-day moving averages, which removes any immediate threat of a bear market. All have recovered more than half of...   READ MORE 

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GRAIN MARKETS LEAD AGRICULATURAL GROUP HIGHER -- GOLD HOLDS UP AS WELL -- OIL SERVICE HOLDERS LEAD ENERGY SECTOR HIGHER -- PULLBACK IN YEN HELPS MARKET -- BUT WHERE'S THE VOLUME

by John Murphy,

Chief Technical Analyst, StockCharts.com

AGRICULATURALS ARE STRONGEST OF COMMODITIES... Commodity markets have come under pressure along with stocks over the past month -- but not by equal amounts. The CRB Index lost -7% during the liquidity crisis. The hardest hit group was the economically-sensitive industrial metals which fell -15%. The energy group lost -8%...   READ MORE 

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PULLBACK IN VOLATILITY INDEX SUPPORTS SHORT-TERM MARKET BOUNCE -- S&P 500 CLOSES BACK ABOVE 200-DAY AVERAGE, BUT VOLUME IS LIGHT -- FINANCIALS AND SMALL CAPS STILL NEED TO CLEAR THEIR AUGUST HIGHS

by John Murphy,

Chief Technical Analyst, StockCharts.com

VIX INDEX IS PULLING BACK... True to its history of trending in the opposite direction of stocks, the CBOE Volatility (VIX) Index continues to weaken after hitting a four-year high last Thursday (when the market bottomed). Chart 1 shows the VIX falling back to 23 and testing a short-term trendline...   READ MORE 

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INTEREST RATES FELL WITH STOCKS IN 1998 AND 1987, BUT THEN BOTTOMED WITH THEM AS WELL -- THE INABILITY OF BOND YIELDS TO BOUNCE IN 2000 LED TO MUCH BIGGER STOCK LOSSES -- RIGHT NOW, BOND YIELDS AREN'T BOUNCING WITH STOCKS

by John Murphy,

Chief Technical Analyst, StockCharts.com

POSSIBLE LINK BETWEEN RATES AND STOCKS ... When volatility rises, asset classes become highly correlated. That's especially true with bonds and stocks. I'm referring here to bond "yields" instead of prices. Chart 1 shows that the 10-year T-Note yield (green line) and the S&...   READ MORE 

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FOREIGN STOCK MARKETS LOOK EVEN WEAKER THAN THE U.S. -- IF THAT'S THE CASE, HOW ARE THEY GOING TO SUPPORT THE U.S. MARKET -- COMPARISON OF 2007 AND 1998 SUMMER PEAKS -- DETERMINING HOW LONG A RIGHT SHOULDER SHOULD LAST

by John Murphy,

Chief Technical Analyst, StockCharts.com

MAYBE GLOBAL GROWTH ISN'T THAT STRONG ... One of the mantras we keep hearing on TV is that strong global markets and economies will prevent the U.S. economy (and stock market) from suffering a serious slowdown. Since I happen to be of the belief that stock markets are...   READ MORE 

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IT'S NOT CLEAR IF THIS WEEK'S BOUNCE IS THE BEGINNING OF THE END OF THE MARKET CORRECTION OR THE END OF THE BEGINNING OF A BEAR MARKET -- WHY THE CURRENT REBOUND COULD BE PART OF A HEAD AND SHOULDERS TOPPING PATTERN

by John Murphy,

Chief Technical Analyst, StockCharts.com

MARKET BOUNCES OFF IMPORTANT CHART SUPPORT ... Yesterday I showed the S&P 500 bouncing off its March low (after correcting 10%) and also the 400-day moving average (green line) which has ended every downside correction since the bull market started more than four years ago. I also pointed out...   READ MORE 

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COMMODITY MARKETS TUMBLE ON GLOBAL STOCK SELLING -- REBOUND IN FINANCIALS, HOWEVER, STEADIES MARKET IN AFTERNOON -- OVERSOLD S&P 500 BOUNCES OFF ITS MARCH LOW SUGGESTING THE WORST MAY BE OVER FOR NOW

by John Murphy,

Chief Technical Analyst, StockCharts.com

CRB INDEX TUMBLES ... The global stock rout spilled over to the commodity pits. The CRB Index fell 10 points to close well under its 200-day average (Chart 1). Several newswires suggested that investors were selling commodities to finance stock losses. Earlier today, I showed sizeable losses in copper and gold...   READ MORE 

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RISING YEN IS ACTUALLY HELPING THE DOLLAR WHILE HURTING FOREIGN CURRENCIES -- AUSTRALIAN DOLLAR PLUNGES 5% -- GOLD AND GOLD SHARES ARE BEING SOLD ALONG WITH OTHER COMMODITIES -- S&P 500 REACHES 10% CORRECTION AND APPEARS HEADED FOR TEST OF MARCH LOW

by John Murphy,

Chief Technical Analyst, StockCharts.com

GOLD SUCCUMBS TO SELLING PRESSURE... My optimism on gold as a potential safe haven is being severely challenged today. Gold shares are being hit especially hard. Chart 1 shows the XAU Index falling more than 5% and falling to a new 2007 low. Earlier in the week I suggested the...   READ MORE 

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DOW TRANSPORTS AND DOW INDUSTRIALS BREAK SUPPORT -- TREND IDENTIFICATION -- PRIOR DOW THEORY BUY SIGNAL -- CURRENT DOW THEORY STATUS -- LOOKING OUTSIDE DOW THEORY FOR CONFIRMATION -- BREADTH REMAINS WEAK

by John Murphy,

Chief Technical Analyst, StockCharts.com

DOW THEORY REVIEW... Today's Market Message was written by Arthur Hill. John Murphy will be back tomorrow. - Editor Today I would like to review Dow Theory and look at the current signal. The "Dow Theory" evolved from the writings of Charles Dow at the turn...   READ MORE 

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MARKET HAS ANOTHER BAD DAY AS 200-DAY AVERAGES ARE BROKEN -- RETAILERS AND HOMEBUILDERS LEAD DAY'S DECLINE -- YEN RALLY THREATENS CARRY TRADE --

by John Murphy,

Chief Technical Analyst, StockCharts.com

RETAILERS LEAD DAY'S DECLINE ... Spooked by tumbles in big retail chains like Wal Mart and Home Depot, retail stocks fell -3.5% today and led the rest of the market lower. Other big losers were homebuilders (-4%) and REITS (-3%). Heavy selling in homebuilders and retailers made Consumer...   READ MORE 

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WAL MART AND HOME DEPOT PLUNGE ON WEAK HOUSING AND HIGH ENERGY PRICES -- THAT'S WHY IT'S DANGEROUS TO EXCLUDE ENERGY FROM INFLATION -- COLLAPSE IN CONSUMER DISCRETIONARY SECTOR HINTS AT WEAKER CONSUMER SPENDING

by John Murphy,

Chief Technical Analyst, StockCharts.com

PRODUCER INFLATION WAS UP -- NOT DOWN AS REPORTED ... One of the major newswires reported this morning that inflation at the producer level came in lower than expected during July. The article was referring to the "core inflation" number (excluding food and energy) which was 0.1% (lower...   READ MORE 

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SECTOR ROTATION MODEL SHOWS THAT STOCK MARKET IS LEADING INDICATOR FOR THE ECONOMY -- WHY RECENT SECTOR ROTATIONS MAY CARRY A WARNING -- MARKET'S RALLY ATTEMPT FADES AS 200-DAY LINE REMAINS THREATENED

by John Murphy,

Chief Technical Analyst, StockCharts.com

STOCKS LEAD THE ECONOMY... Over the weekend, I explained why we can't use the economy to predict the stock market. Because stocks turn down six to nine months before the economy. That doesn't mean that every market downturn leads to an economic slowdown or recession. That&...   READ MORE 

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SHORT-TERM MARKET TREND MAY BE STABILIZING -- BUT LONG-TERM TREND MAY BE WEAKENING -- WHY ECONOMISTS SHOULDN'T BE ASKED ABOUT THE STOCK MARKET

by John Murphy,

Chief Technical Analyst, StockCharts.com

GLOBAL STOCKS ARE TESTING 200-DAY AVERAGES... With the all recent market turmoil, it's important not to lose sight of the big picture. We all know by now that the stock market has suffered a sharp downturn over the last month on record volume. And we all know where...   READ MORE 

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MARKET BOUNCE ENDS IN DECISIVE FASHION -- NEXT DOWNLEG APPEARS TO HAVE STARTED -- WHY WATCHING CABLE TV ISN'T GOOD FOR YOUR WEALTH

by John Murphy,

Chief Technical Analyst, StockCharts.com

RESISTANCE KICKS IN... Over the past week, I've been plotting Fibonacci retracement lines over the major stock indexes to show where potential resistance levels (renewed selling) could be expected. A normal short-term bounce usually carries anywhere from a third (38%) to half (50%) of the previous downturn. The...   READ MORE 

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FINANCIALS AND RETAILERS LEAD MARKET DECLINE AS MORE SUBPRIME PROBLEMS ARISE

by John Murphy,

Chief Technical Analyst, StockCharts.com

BANKS AND BROKERS ARE BIGGEST LOSERS... More subprime problems emerging from Europe have caused heaving selling in stocks around the world. Most of that scared money is contining to flow into Treasury Bonds which are up today. As has been the case recently on down days, financial stocks are the...   READ MORE 

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SMALL-CAPS VERSUS BIG TECHS -- RUSSELL 2000 GETS OVERSOLD BOUNCE -- NASDAQ 100 MAINTAINS UPTREND -- CISCO POWERS BIG TECHS -- THE SUB-PRIME PROGRESSION -- REITS AND HOMEBUILDERS SURGE -- TARGETS FOR OVERSOLD BOUNCES

by John Murphy,

Chief Technical Analyst, StockCharts.com

A TALE OF TWO MARKETS ... Today's Market Message was written by Arthur Hill. John Murphy will be back tomorrow. - Editor Stocks rebounded over the last three days, but these rebounds need to be considered in the context of prior price action. While the advance in the Russell...   READ MORE