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Euro Approaches Resistance Zone

by Arthur Hill

The Euro ETF (FXE) has been red hot with a move from around 125 in early March to 141 in late May. Interestingly, the rise in the Euro coincides with a rise in stock over this same period. FXE is fast approaching a resistance zone around 142.5-145. This zone stems from broken support and the December 2008 high. Read More 

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Natural Gas Surges

by Arthur Hill

While the US Oil Fund ETF (USO) bottomed in February, the US Natural Gas Fund ETF (UNG) continued lower and recorded a new low in late April. There was a big surge in early May and then a deep pullback the last two weeks. Notice that this pullback ended abruptly as UNG held above its April low and surged over 8% today. Read More 

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Asia Leads The Way

by Arthur Hill

While the western stock markets have clawed their way back towards positive territory the last few months, the Hang Seng ($HIS) turned year-to-date positive in early April and now sports a 24.31% gain. Among the six world indices shown, the Nikkei 225 is a distant second with a 6.54% gain year-to-date and the S&P 500 is down for the year. Read More 

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Naz Battles the 200-day

by Arthur Hill

The Nasdaq extended its battle with the 200-day moving average by jumping back above with a big advance on Tuesday. With this latest move, the index has now crossed the 200-day at least five times this month. Notice that today's surge occurred on the second lowest volume of the month. Read More 

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QQQQ Retraces 38.2%

by Arthur Hill

With the March-May advance, QQQQ has now retraced 38.2% of the May-November decline. Where does this number come from? It based on the Golden Ratio Congugate (.618). 1 - .618 = .382 or 38.2%. After a decline, like May to November, the Fibonacci Retracements Tool can be used to measure percentage retracements. Read More 

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AD Volume Line Breaks Trendline

by Arthur Hill

The AD Volume Line for the Nasdaq broke its March trendline and formed a lower high in May. This indicator is a cumulative measure for the volume of advancing stocks less the volume of declining stocks. Notice that recent peaks and troughs in the Nasdaq coicided with peaks and troughs in this indicator (blue arrows). The AD Volume Line is now showing some weakness with a trendline break and lower high. Read More 

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A Head-and-Shoulders for Wal-Mart?

by Arthur Hill

Wal-Mart is tracing out a continuation head-and-shoulders pattern with neckline support around 47.5-48. It is a bit unusual because the neckline is sloping up, which reflects higher lows since early February. A break below support would confirm the pattern and signal a continuation lower. Conversely, a break above the red resistance line would negate the pattern. Read More 

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A High-Volume Harami for SUN

by Arthur Hill

After a decline below 30, Sunoco (SUN) suddenl firmed with a high volume harami on Monday (18-May). These are potentially bullish candlestick reversal patterns that require confirmation with further upside. Look for volume to confirm any breakout. Read More 

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10-Year Treasury Yield Hits Resistance

by Arthur Hill

Broken support turns into resistance. This classic tenet of technical analysis is coming into play for the 10-Year Treasury Yield ($TNX). Notice that the 10-Year Treasury Yield broke support around 33-34 (3.3-3.4%) and this area turned into resistance in early May.  Read More 

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A Massive Bearish Engulfing

by Arthur Hill

Tidewater (TDW) formed a massive bearish engulfing that engulfed the prior five candlesticks. Volume surged to its highest level since January. What's more, this is the second bearish engulfing pattern in two weeks. These patterns reflect a raging battle at resistance from the January-February highs. Read More 

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Best Buy Breaks Support

by Arthur Hill

Best Buy (BBY) broke support and the 50-day moving average with a sharp decline over the last six days. Notice how the Aroon Oscillator turned negative just before this support break. In fact, this Aroon signal would have shown up on the Aroon scan last Thursday. Read More 

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Dow Transports Falls Short of 200-day

by Arthur Hill

After a most impressive rally, the Dow Transports stopped just short of its 200-day simple moving average with a sharp decline the last four days. Also notice that this key average is trading below its prior reaction high (early January). Watch the rising 50-day moving average for potential support on any pullback. Read More 

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Bollinger Bands Narrow for AT&T

by Arthur Hill

With flat trading since late March, a volatility contraction for AT&T (T) is causing the Bollinger Bands to narrow. Bollinger Bands do not provide a directional bias, but last week's high volume decline shows selling pressure picking up steam. Read More 

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Technology Lags on Friday

by Arthur Hill

The S&P Sector Carpet shows a color-coded version of the leading and lagging sectors. Dark green sectors are leading with financial and energy showing the biggest gains on Friday. The technology was conspicuously absent from the leadership board on Friday. In fact, technology was the worst performing sector on Friday. Read More 

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Gamestop Breaks Lower B-Band

by Arthur Hill

Looking through the scans page, I noticed that Game stop broke below its lower Bollinger Band with a high volume decline. Moreover, the stock is showing relative weakness as the price relative broke below its March lows. GME is moving down while the S&P 500 has been moving higher. Read More 

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RSI Breaks 70 for QQQQ

by Arthur Hill

With 14-day RSI moving above 70 this week, the Nasdaq 100 ETF (QQQQ) became the first major-index ETF with an overbought reading. RSI is considered overbought when above 70 and oversold when below 30. For the Russell 2000 ETF (IWM), S&P 500 ETF (SPY) and Dow Industrials ETF (DIA), 14-day RSI has yet to breach this level.  Read More 

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Commodity ETFs Follow SPY

by Arthur Hill

Demand for certain commodity ETFs is moving in the same direction as the stock market: UP. Economic growth translates into more demand for industrial metals (DBB), oil (USO), gasoline (UGA) and agricultural products (UGA). In a bit of a strange twist, natural gas (UNG) and livestock (COW) remain laggards.  Read More 

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Don't Ignore this Cloud!

by Arthur Hill

Check out the ticker cloud to see what's hot every morning. While there will always be the old standby symbols like GLD, DIG, DUG, GOOG, QID and FXI popping up, you are also likely to see some the stars d' jour. For Friday morning, I noticed interest in Alcoa (AA), Alpha Natural Recources (ANR), Barclays PLC (BCS), lululemon (LULU) and Metlife (MET). Read More