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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 

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CONSUMER STAPLES WERE MONTH'S TOP SECTOR -- CONSUMER STAPLE LEADERS -- S&P 500 BULLISH PERCENT INDEX TESTS IMPORTANT CHART SUPPORT -- S&P 500 REGAINS ITS 200-DAY LINE -- FINANCIAL REBOUND STILL HAS A LONG WAY TO GO TO REPAIR RECENT CHART DAMAGE

by John Murphy,

Chief Technical Analyst, StockCharts.com

CONSUMER STAPLES MONTH'S TOP SECTOR... As usually happens when the stock market sells off sharply, money tends to flow to stocks with defensive characteristics. These are stocks that usually fall less during a market downturn -- and, hopefully, even gain ground while the rest of the market drops....   READ MORE 

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USING PERFORMANCE CHARTS TO FIND GROUP LEADERS AND LAGGARDS -- WHY RECENT PREFERENCE FOR BLUE CHIPS ISN'T A GOOD SIGN -- WEAK JOBS REPORT PUSHES DOLLAR AND BOND YIELDS LOWER - BONDS AND GOLD ARE DAY'S WINNERS AS STOCKS DROP

by John Murphy,

Chief Technical Analyst, StockCharts.com

JOHN'S LATEST PERFORMANCE CHART... Each week I post a performance chart under the headline shown above. It can be found on the John Murphy page. I usually show which market sectors, or industry group, are doing better than the S&P 500 (which is the industry benchmark...   READ MORE 

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A COMPARISON OF GOLD AND STOCKS -- GOLD HAS BEEN THE STRONGER ASSET SINCE 2000 -- NOT ALL FUNDAMENTALS ARE BULLISH -- SHORT-TERM MARKET REBOUND CONTINUES -- BUT DAILY AND WEEKLY INDICATORS AREN'T IN SYNC

by John Murphy,

Chief Technical Analyst, StockCharts.com

SHORT-TERM VIEW... I've received a large number of questions as to how gold holds up when stocks fall. What makes a firm answer to that difficult is that gold and stocks often trend together over the short run. Gold has also shown a tendency to correct along with...   READ MORE 

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SPY FIRMS AFTER BIG DOWN WEEK -- TECHNOLOGY STILL SHOWING RELATIVE STRENGTH -- CONSUMER DISCRETIONARY BREAKS MARCH LOW -- CISCO MAINTAINS BREAKOUT -- NIKKEI LEADS LOWER -- RISING YEN WEIGHS ON NIKKEI -- OIH TESTS 50-DAY -- VOLUME BASED INDICATORS

by John Murphy,

Chief Technical Analyst, StockCharts.com

SPY BATTLES 40-WEEK MOVING AVERAGE ... Today's Market Message was written by Arthur Hill. John Murphy will be back tomorrow. - Editor The S&P 500 ETF (SPY) is trying to firm this week and find support. The ETF declined sharply last week on record weekly volume (over...   READ MORE 

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AUGUST AND SEPTEMBER ARE USUALLY WEAK MONTHS -- THAT WOULD BE A LOGICAL TIME FOR MARKET CORRECTION TO RESUME -- CLARIFYING MOVING AVERAGE LINES AND SIGNALS-- MARKET RALLY FADES AS 50-DAY AVERAGES BECOME NEW RESISTANCE

by John Murphy,

Chief Technical Analyst, StockCharts.com

AUGUST THROUGH OCTOBER IS MOST DANGEROUS TIME... In my weekend analysis, I closed with the comment that I thought the market could suffer a 10% correction "between now and the autumn". I chose that time period for a very good reason. By the end of July, any summer...   READ MORE 

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REASONS WHY THIS MARKET CORRECTION MAY BE BIGGER THAN PREVIOUS ONES

by John Murphy,

Chief Technical Analyst, StockCharts.com

FIRST A SURVEY OF THE WEEK'S DAMAGE... It was the market's worst week since the bull market began more than four years ago -- both in terms of percentage losses, downside volume, and bad breadth. All market sectors and industry groups fell. Every single market index...   READ MORE 

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MARKET FALLS AGAIN ON FRIDAY -- S&P 500 IS HEADED FOR TEST OF 200-DAY AVERAGE -- VIX HITS HIGHEST LEVEL SINCE BULL MARKET BEGAN IN 2003 -- THAT SUGGESTS THAT THIS CORRECTION COULD BE BIGGER THAN PREVIOUS ONES -- EXPECT SATURDAY MESSAGE

by John Murphy,

Chief Technical Analyst, StockCharts.com

S&P 500 HEADED FOR TEST OF 200-DAY LINE... The stock market had another bad day on Friday as all major stock indexes closed below Thurday's intra-day lows (and again on heavy volume). The first three charts show the week's technical damage done to three...   READ MORE 

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HOMEBUILDING CHARTS SUGGESTS HOUSING SITUATION IS GOING TO GET A LOT WORSE -- DR HORTON AND LENNAR BREAK NECKLINES IN MAJOR HEAD AND SHOULDER TOPS -- VIX HITS NEW 2007 HIGH -- RISING YEN THREATENS GLOBAL RALLY

by John Murphy,

Chief Technical Analyst, StockCharts.com

HOUSING SECTOR CONTINUES TO WEAKEN ... I've suggested for some time that those calling for a housing bottom look at the long-term chart of homebuilders. If they had, they wouldn't be as surprised as they seem to be. [That includes the heads of the Fed and the...   READ MORE 

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MARKET CONTINUES TO FALL ON BAD BREADTH -- NYSE INDEX BREAKS JUNE LOW -- DOW AND NASDAQ UNDERCUT 50-DAY AVERAGES -- RUSSELL 2000 SMALL CAP INDEX TRADES BELOW 200-DAY LINE -- WEAKEST GROUPS ARE AIRLINES BROKERS, AND HOMEBUILDERS

by John Murphy,

Chief Technical Analyst, StockCharts.com

SUPPORT LEVELS ARE BEING BROKEN... The market continues to drop on very bad breadth. Losers on the big board are swamping gainers by a 10 to 1 ratio. The same is true of downside volume versus upside volume. [The NYSE AD line hit a three-month low on Tuesday]. The charts...   READ MORE 

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VALUE STOCKS DRAG DOWN RUSSELL 2000 -- XLU BREAKS FLAG SUPPORT-- NEW LOWS EXPAND ON NYSE AND NASDAQ -- US DOLLAR INDEX HAS A BIG DAY -- GOLD DECLINES ON DOLLAR STRENGTH -- APPLIED MATERIALS REMAINS STRONG -- RF MICRO DEVICES GAPS HIGHER

by John Murphy,

Chief Technical Analyst, StockCharts.com

VALUE LEADING THE WAY DOWN... Today's Market Message was written by Arthur Hill. John Murphy will be back tomorrow. - Editor The Russell 2000 broke below its June lows this week and this break can be attributed to the "value" components. The Russell 2000 can be...   READ MORE 

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MARKET FALLS HARD ON BAD BREADTH AND HEAVY VOLUME -- NYSE ADVANCE-LINE TURNS DOWN -- FINANCIALS AND SMALL CAPS LEAD THE WAY -- THE S&P 500 BREAKS ITS 50-DAY AVERAGE

by John Murphy,

Chief Technical Analyst, StockCharts.com

FINANCIALS AND SMALL CAPS LED THE WAY ... Earlier today I showed heavy selling in the Russell 2000 iShares (IWM) and the Financials Select Sector SPDR (XLF). [Please see Market Message posted earlier today]. Unfortunately, things got worse as the day progressed. Chart 1 shows the IWM closing 2.8% lower...   READ MORE 

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FINANCIAL STOCKS APPROACH TEST OF MAJOR SUPPORT -- SMALL CAPS CONTINUE TO WEAKEN ALONG WITH MARKET BREADTH -- THE 13-AND 34-DAY EMA COMBINATION SHOWS S&P TREND STILL UP BUT STARTING TO WEAKEN

by John Murphy,

Chief Technical Analyst, StockCharts.com

FINANCIAL SPDR NEARS TEST OF SPRING LOW ... One of our readers asked me recently if the daily chart of the Financials SPDR looked like a bullish "triangle" or a bearish "double top". This week's downside action has pretty much ruled out the "triangle&...   READ MORE 

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NYSE BULLISH PERCENT INDEX SHOWS NEGATIVE DIVERGENCE -- BREADTH DETERIORATION IS SEEN IN FINANCIALS, HOUSING, REITS, AND SMALL CAPS -- BONDS JUMP AS STOCKS FALL -- GOLD JUMPS ON WEAK DOLLAR -- RISING YEN MAY WEAKEN CARRY TRADE

by John Murphy,

Chief Technical Analyst, StockCharts.com

NYSE BULLISH PERCENT INDEX ... I wrote yesterday about some short-term negative divergences appearing on some of our market breadth indicators. Here's another one. But first an explanation of what it is. The NYSE Bullish Percent Index ($BPNYA) is the percent of stocks in an index that are in...   READ MORE 

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BREADTH MEASURES SHOW SHORT-TERM DIVERGENCE -- IBM CONTINUES TO REFLECT NEW TECHNOLOGY BLUE CHIP DOMINANCE -- MICROSOFT HITS NEW 52-WEEK HIGH -- MORE PRECIOUS METAL INDEXES NEAR BULLISH BREAKOUTS -- BARRICK GOLD NEARS RECORD

by John Murphy,

Chief Technical Analyst, StockCharts.com

NYSE ADVANCE-DECLINE LINE SHOWS MINOR DIVERGENCE ... One of our readers asked me to comment on short-term negative divergences showing up on some of our market breadth measures. The main one, of course, is the NYSE Advance-Decline line ($NYAD). Chart 1 shows the divergence referred to. While the NYSE Composite Index...   READ MORE 

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FINANCE SECTOR DRAGS THE MARKET LOWER -- USING RSI TO DETERMINE THE TREND -- BANKS AND BROKERS REMAIN LAGGARDS -- MERRILL AND JP MORGAN GAP DOWN -- GOLD AND SILVER ATTRACT BUYERS -- ST JUDE MEDICAL HITS 52-WEEK HIGH

by John Murphy,

Chief Technical Analyst, StockCharts.com

FINANCE LEADS THE WAY LOWER... Today's Market Message was written by Arthur Hill. John Murphy will be back tomorrow. - Editor Of the nine sector SPDRs, the Finance SPDR (XLF) lost the most on Wednesday and dragged the market lower. Continuing problems with sub-prime loans were to blame...   READ MORE 

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CHEMICALS AND SEMICONDUCTORS LEAD MARKET HIGHER -- TAIWAN SEMICONDUCTOR KEEPS TAIWAN ETF IN NEW LEADERSHIP ROLE -- MICROSOFT CLEARS ITS 50-DAY AVERAGE

by John Murphy,

Chief Technical Analyst, StockCharts.com

CHEMICALS BOOST BASIC MATERIALS ... Basic materials have been one of the market's strongest groups this year. A lot of the reason for that has to go to strong buying in the chemical group. Chart 1 shows the Dow Jones US Chemicals Index ($DJUSCH) climbing 1.7% and hitting...   READ MORE 

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GENERAL ELECTRIC SHOWS NEW LEADERSHIP -- FEDEX AND ALEXANDER & BALDWIN LEAD TRANSPORTS HIGHER -- PAYCHEX ACHIEVES BULLISH BREAKOUT ON NASDAQ -- US DOLLAR IS CLOSE TO A RECORD LOW -- THE PROFUNDS FALLING DOLLAR FUND EXCEEDS 2005 HIGHS

by John Murphy,

Chief Technical Analyst, StockCharts.com

GENERAL ELECTRIC IS STARTING TO LEAD ... Today's 2% jump in General Electric has pushed the stock to a new multi-year high as shown in Chart 1. As good as that "absolute" performance is, a bigger part of the GE story is the recent upturn in its...   READ MORE 

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ALCOA LEADS DOW TO NEW RECORD -- BARRICK GOLD HELPS XAU INDEX BREAK OUT -- CISCO AND INTEL LEAD TECHS HIGHER -- SEMICONDUCTOR HOLDERS ACHIEVE BULLISH BREAKOUT

by John Murphy,

Chief Technical Analyst, StockCharts.com

ALCOA BREAKS OUT TO A NEW RECORD ... Not only did the Dow Industrials hit a new record today, it was the biggest percentage gainer of the major market indexes. A big reason for that was a 6% gain in Alcoa. The monthly bars in Chart 2 show the aluminum giant...   READ MORE 

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S&P 100 REMAINS RANGE BOUND -- RUSSELL 2000 FAILS AT RESISTANCE -- BROKERS SHOW RELATIVE WEAKNESS -- MERRILL LEADS BROKERS LOWER -- COAL STOCKS VERSUS CRUDE OIL -- CRB INDEX BREAKS RESISTANCE

by John Murphy,

Chief Technical Analyst, StockCharts.com

SMALL-CAPS AND LARGE-CAPS LAGGING... Today's Market Message was written by Arthur Hill. - Editor While the Nasdaq ($COMPQ) and Nasdaq 100 ($NDX) moved to new highs in early July, the S&P 100 ($OEX) and Russell 2000 ($RUT) met resistance from their June highs and stalled over...   READ MORE 

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HOUSING AND FINANCIAL PROBLEMS TAKE CENTER STAGE -- EURO HITS NEW RECORD AGAINST THE DOLLAR -- MARKET INDEXES PULL BACK FROM TOP OF RECENT TRADING RANGE

by John Murphy,

Chief Technical Analyst, StockCharts.com

EURO HITS NEW RECORD VERSUS THE DOLLAR ... A sharp drop in U.S. bond yields today is causing heavy selling of the U.S. Dollar. Most of the major foreign currencies are gaining ground (including the yen). The most notable move, however, is in the Euro. The daily bars in...   READ MORE 

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RISING TECHNOLOGY APPEARS TO BE WINNING BATTLE WITH WEAK FINANCIALS -- ALTERA IS ANOTHER SOX LEADER NEARING BULLISH BREAKOUT -- GOLD SHARES ARE STARTING TO PULL BULLION HIGHER -- FALLING DOLLAR BOOSTS COMMODITIES AND FOREIGN SHARES

by John Murphy,

Chief Technical Analyst, StockCharts.com

TECHNOLOGY OVERCOMES FINANCIAL WEAKNESS ... On Friday June 29, I wrote about a tug-of-war going on between a strong technology sector (which is good for the market) versus a weak financial sector (which is bad). So far, it looks like technology is winning the battle. The three lines in Chart 1...   READ MORE 

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NASDAQ HITS 52-WEEK HIGH -- NYSE COMPOSITE RECAPTURES 10K -- A 10 YEAR LOOK AT THE NASDAQ -- AIRLINES TAKE OFF -- CONTINENTAL LEADS AIRLINES HIGHER -- APPLE BREAKS TRIANGLE RESISTANCE -- THE APPLE AFFECT -- GOLD MINERS ETF BOUNCES OFF RANGE SUPPORT

by John Murphy,

Chief Technical Analyst, StockCharts.com

STOCKS END HIGHER IN SHORT SESSION... Today's Market Message was written by Arthur Hill. - Editor The stock exchanges closed early on Tuesday (1PM), but that did not deter the bulls and the major indices notched another gain before the 4th of July holiday. The gains across the...   READ MORE 

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STOCKS START THE SECOND HALF STRONG -- TECHS CONTINUE TO LEAD - GM AND FORD HIT 52-WEEK HIGHS -- US DOLLAR TUMBLES -- GOLD BOUNCES ON DOLLAR WEAKNESS

by John Murphy,

Chief Technical Analyst, StockCharts.com

GOOD NEWS BOOSTS STOCKS... Today's Market Message was written by Arthur Hill. - Editor Good news brought out the bulls and stocks started the second half of the year on a strong note. The Institute for Supply Management (ISM) got things started with a report that their June...   READ MORE 

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MARKET TREND MAY DEPEND ON WHETHER TECHNOLOGY STRENGTH CAN OVERCOME FINANCIAL WEAKNESS -- SOME RECENT NASDAQ LEADERS -- DELL BREAKS OUT -- SHORT-TERM S&P 500 TREND CONTINUES TO WEAKEN

by John Murphy,

Chief Technical Analyst, StockCharts.com

TUG OF WAR GOING ON ... It seems to me that a tug of war is going on in the market between two opposing forces. On the positive side is the recent resurgence in technology shares. That's usually good for the market. On the negative side is recent selling...   READ MORE 

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S&P 500 AND RUSSELL 2000 BOUNCE OFF SUPPORT -- NASDAQ SHOWS RELATIVE STRENGTH -- SEMIS LEAD TECHS HIGHER -- MXIM AND AMAT POWER THE SEMIS -- BIOGEN JOINS BUYBACK FEVER -- USING PRICE CHANNELS

by John Murphy,

Chief Technical Analyst, StockCharts.com

TESTING KEY SUPPORT AHEAD OF THE FED... Today's Market Message was written by Arthur Hill. John Murphy will be back tomorrow. - Editor The Fed started its two day meeting today and an announcement is expected tomorrow afternoon. Stocks were weak leading up to the meeting, but managed...   READ MORE 

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DRUGS AND TOBACCO ATTRACT NEW BUYING -- COCA COLA ENTERPRISES ACHIEVES BULLISH BREAKOUT -- RISING BOND YIELDS MAY BE HURTING PRECIOUS METALS -- MARKET RALLY FADES AS VIX JUMPS TO THREE-MONTH HIGH

by John Murphy,

Chief Technical Analyst, StockCharts.com

OVERSOLD HEALTHCARE SECTOR BOUNCES ... It may be a sign that investors are turning a little more defensive, but some of this week's strongest groups have been in defensive areas like consumer staples and healthcare. Today's market reports show a housing sector that's continuing to...   READ MORE 

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WEAK FINANCIALS PULL MARKET LOWER -- S&P 500 CLOSES BELOW 5O-DAY LINE FOR SECOND DAY -- JUNE LOW MAY BE RETESTED --BONDS BOUNCE ON FLIGHT TO QUALITY BUYING -- RISING VIX NEARS QUARTERLY HIGH

by John Murphy,

Chief Technical Analyst, StockCharts.com

FINANCIALS SPDR FALLS BELOW 200-DAY LINE ... A mid-day market rally fell apart on more mortgage concerns and another sharp drop in financial shares. Chart 1 shows the Financials Select SPDR (XLF) ending the day beneath its 200-day moving average. Downside volume has been especially heavy over the last two trading...   READ MORE 

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FINANCIAL STOCKS LEAD MARKET DECLINE -- SO DO UTILITIES -- RISING RATES ARE PART OF THE PROBLEM -- S&P 500 CLOSES BELOW 50-DAY AVERAGE ON HEAVY VOLUME

by John Murphy,

Chief Technical Analyst, StockCharts.com

SUBPRIME CONCERNS HURT BANKS AND BROKERS ... Growing concerns about the fallout in the subprime mortgage market caused heavy selling in banks and brokers today. Today's selling more than wiped out yesterday's rebound in the financial group. Chart 1 shows the Financials Sector SPDR (XLF) undercutting yesterday&...   READ MORE 

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FINANCIAL SHARES RECOVER FROM EARLY SELLOFF WHILE SOX INDEX HITS 52-WEEK HIGH -- THOSE TWO FACTORS KEPT S&P 500 OVER ITS 50-DAY AVERAGE -- NASDAQ SHOWS NEW UPSIDE LEADERSHIP

by John Murphy,

Chief Technical Analyst, StockCharts.com

FINANCIALS REBOUND ON STRONG VOLUME ... An early selloff in financial stocks today turned into a positive day after all. Chart 1 shows the Financials Sector SPDR (XLF) closing higher. More importantly, volume was unsually heavy. That upside reversal day also kept the XLF above its 200-day moving average. The rebound...   READ MORE 

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SEMICONDUCTOR BUYING MAY BE TIED TO STRONGER ASIA -- TAIWAN SEMICONDUCTOR AND TERADYNE ACHIEVE BULLISH BREAKOUTS -- SO DOES SEMICONDUCTOR HOLDERS -- THAT'S HELPING PUT NASDAQ IN NEW LEADERSHIP ROLE

by John Murphy,

Chief Technical Analyst, StockCharts.com

NEW INTEREST IN CHIPS AND TAIWAN ... My June 14 story on new buying in semiconductors was greeted with some questions and some criticism. One reader suggested that I stop writing about the group because it had disappointed so many times in the past. Another asked how I could be positive...   READ MORE 

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STOCKS REVERSE AFTER EARLY GAINS - ENERGY LEADS THE WAY LOWER - AIRLINES BOUNCE ON FALLING OIL PRICES - SOUTHWEST BREAKS MAY HIGH - RISING RATES HURT UTILITIES - NET NEW HIGHS REMAIN POSITIVE

by John Murphy,

Chief Technical Analyst, StockCharts.com

BEARISH ENGULFING PATTERNS ABOUND... Today's Market Message was written by Arthur Hill. John Murphy will be back tomorrow. - Editor Stocks opened strong this morning, but selling pressure took over and the major indices finished the day weak. As a result, bearish engulfing patterns or outside reversals formed...   READ MORE 

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MORE ON HOW CURRENCIES IMPACT FOREIGN ETFS -- REITS AND HOMEBUILDING STOCKS SHOW NO SIGN OF BOTTOM -- DOW'S POINT & FIGURE TREND IS STILL UP

by John Murphy,

Chief Technical Analyst, StockCharts.com

MORE ON CURRENCY MOVES ... One of our readers complained that Chart 6 in last Friday's update made no sense. It had to do with why a weaker yen hurt the relative performance of Japan iShares (EWJ). I'll take another shot at it because it can be...   READ MORE