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About this blog: is our free newsletter for individuals interested in technical trading and chart analysis. It is sent out twice a month via email. This blog contains early-access, preview versions of the articles that later appear in the official newsletter.

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ChartWatchers

Breadth Indicators Dive To 2 Year Lows

by Greg Schnell

Before heading off on my vacation, I mentioned the breadth indicators for the major exchanges were getting weak, but the breadth for the $SPX was still very bullish. This week the main exchanges saw the breadth crash to twenty-four month lows. The Bullish percent index for the NASDAQ is now below 50% but more importantly it has declining tops since the beginning of the year. Notice the series of lower highs on the BPI compared to the higher highs on the $COMPQ. This divergence is huge and meaningful. It is very important that the market bounce from here. Notice at the other major Read More 

ChartWatchers

Utilities Shine as Market Takes a Turn

by Arthur Hill

Utilities are not the most exciting stocks in the world, but the Utilities SPDR (XLU) is the third best performing sector since February and the second best performing sector last week. The could have further to run. Let's look at the charts. The first chart shows weekly bars over the last ten years. Prices are moving from the lower left to the upper right and there is clearly a long-term uptrend at work. The red lines show pullbacks within this uptrend, the longest of which was 32 weeks in 2015.    The top window shows XLU without the dividend adjustments Read More 

ChartWatchers

NIFTY breaks trend. Pharma and IT show relative strength

by Julius de Kempenaer

The Indian $NIFTY Index dropped out of an almost three-year uptrend at the close of last week. The rising support line that started at the low in early 2016 did not manage to hold up and was clearly broken during last week's market action. This move changes the dynamics of the Indian stock market. On the weekly chart above a new series of lower highs and lower lows has not (yet) begun. So technically it is not a downtrend yet. On the daily chart, however, a series of lower highs and lower lows is visible already since the first week of September. Relative Rotation Read More 

ChartWatchers

Russell 2000 Is Now Retesting Its 200-Day Average

by John Murphy

Editor's Note: This article was originally published in John Murphy's Market Message on Friday, October 5th at 2:02pm ET. Tuesday's message showed the Russell 2000 Small Cap Index being the first of the major market indexes to fall below its 50-day line, and warned that the selloff in small cap stocks might be a warning that the stock uptrend is losing momentum. Small caps continue to lead large cap stocks lower. Chart 5 shows the RUT falling today to its lowest level in four months and sitting right on its 200-day average. That's an important test for small cap stocks, and possibly for Read More 

ChartWatchers

A Warm Welcome To Our Newest Contributing Author, David Keller, CMT

by Grayson Roze

Okay, I’ll admit, this was just about the worst-kept secret of the year. That said, it doesn’t detract from the good news. Last week, we launched an expanded partnership with David Keller and officially introduced his new blog, The Mindful Investor. As many of you know, David was one of our new faces at ChartCon 2018. His presentation was a tremendous hit, and after a flood of positive responses, it was clear that we needed to bring more of his commentary onto the site. David's passion for the markets and his extensive industry experience will allow him to Read More 

ChartWatchers

Health Care Has Become the New Market Leader

by John Murphy

Editor's Note: This article was originally published in John Murphy's Market Message on Friday, September 28th at 12:29pm ET. The three strongest sector leaders since the start of this year have been consumer cyclicals, technology, and healthcare (in that order). But those numbers don't reflect the fact that healthcare has become the strongest market sector over the past three and six month periods. In other words, healthcare is the new market leader. The three relative strength lines in Chart 1 represent consumer cyclicals (blue line), technology (red line), and healthcare (green line) Read More 

ChartWatchers

Aerospace Starts A Launch Sequence

by Greg Schnell

With another SpaceX launch and more news this week about delivering multiple cargos on one delivery rocket, the Aerospace industry continues to accelerate. This week, the group of public aerospace companies all sported nice chart setups heading into the fourth quarter. I have circled the SCTR rankings. I did a review of UTX on a Don't Ignore This Chart article titled United Technologies UTX Pushed The Penthouse Button. Let's look at a few more below. TransDigm is flying. While Boeing gets all the love, this chart has just had a nice reset and looks ready to make Read More 

ChartWatchers

Three Great Stocks And An Offer To Download My Strong Earnings ChartList

by Tom Bowley

Special Offer If you would like a copy of my Strong Earnings ChartList, simply follow these steps and I'll send it to you: 1.  You MUST be a paid Extra or Pro member of StockCharts.com as that's the only way you can download my ChartList.  If you're unsure of your account service level, click on the "Your Account" tab in the upper right hand corner when you're on the SC.com home page.  At the very top of the Your Account page under Membership Details, you'll find your service level.  That must say either Extra or Pro.  If it says Basic, you will need to Read More 

ChartWatchers

XLE Gains PMO BUY Signal - Still Too Many Negatives in Intermediate Term

by Erin Swenlin

If you look at our DecisionPoint Sector Scoreboard below you'll see that the Energy is the only sector carrying an Intermediate-Term Trend Model Neutral signal. All other sectors have BUY signals in both the intermediate term and long term. While Energy did log a new Price Momentum Oscillator (PMO) BUY signal today, the negatives on the daily and weekly charts outweigh the positives. I've annotated the new PMO BUY signal on the daily chart below. Energy hasn't been performing well since peaking in May. It spent most of the summer months traveling sideways within a trading channel Read More 

ChartWatchers

Equities (SPY) is the only asset class inside the leading quadrant AND it is at a positive RRG Heading

by Julius de Kempenaer

The Relative Rotation Graph shows the relative positions of various asset classes (ETFs) against VBINX, a Vanguard balanced index fund, as the benchmark. The long tails for Real Estate and Commodities stand out, as well as the cluster of fixed income related asset classes inside the red oval. The strongest clue, on this RRG chart, however, is coming from SPY which is the only asset class inside the leading quadrant AND the only asset class moving at a positive RRG-Heading. The weak rotation for the US dollar index theoretically suggests that Read More 

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