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A Triple Bottom Breakdown for Sherwin Williams

by Arthur Hill

From the PnF scans comes Sherwin Williams (SHW) with a clear break below the May lows. On the PnF chart, you can see the number 5 to denote the start of May and then two reaction lows. After the number 6 (June), SHW formed another column of O’s that broke below the prior two lows. Also notice that SHW broke the bull support line. Read More 

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FedEx Hits Channel Resistance

by Arthur Hill

After surging on good volume, FedEx (FDX) hit channel resistance around 57. Notice that FDX peaked in early May and then worked its way lower the last eight weeks. This series of lower lows and lower highs defines the channel, which is also an 8-week downtrend. Look for a breakout to reverse this trend.  Click the image to see the SharpChart. Read More 

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Dow Bullish Percent Gets Frothy

by Arthur Hill

The DJIA Bullish Percent Index ($BPINDU) moved above 70% in June and remains at lofty levels. Mid December and early January were the last two occasions above 70%. Currently, 73% of the Dow stocks (30) are on Point & Figure buy signals. Even though this is technically bullish, an advance is usually getting overbought when this indicator exceeds 70%. Read More 

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HP Holds the Breakout

by Arthur Hill

While the S&P 500 took a hit in June, Hewlett-Packard (HPQ) managed to hold its breakout and stay relatively strong. HP broke triangle resistance in early June. Broken resistance then turned into support the last three weeks. Also notice that the price relative moved higher throughout June. Read More 

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Yield Curve Remains Steep

by Arthur Hill

A static shot of the dynamic yield curve reveals a curve steep enough to temp a skateboarder. As this curve shows, interest rates start low at the short end and rise as the maturities lengthen. Typically, a steep yield curve reflects loose monetary policy designed to stimulate the economy and help banks. Read More 

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Dow Tests Support

by Arthur Hill

The Dow Industrials is testing support around 8200. A key tenet of technical analysis is that broken resistance turns into support. After breaking 8200 in early May and this level turned into support twice in May. With a sharp decline in June, the Dow is once again poised for a test of this level. Read More 

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Watching for Tech Leadership

by Tom Bowley

The tech-laden NASDAQ 100 showed considerable relative strength prior to the market bottom in March 2009.  Should the NDX:SPX relative ratio break above 1.625, I believe it could lead to additional market strength. -Tom Bowley Join Tom and the Invested Central Team at www.investedcentral.com.  Invested Central is an education-first stock trading service that provides its members with their flagship product - the Daily Market Report, intraday stock and ETF alerts, and LIVE chats 4 times a week, among other features. Read More 

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UPS Leads the Market

by Arthur Hill

UPS is a key part of the Dow Transports and perhaps a leading indicator for the stock market. Notice how the price relative (UPS:$SPX ratio) bottomed ahead of the stock market in March. UPS started showing relative strength before the actual market bottom. Most recently, the price relative peaked in April and UPS has been showing relative weakness the last two months. Read More 

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Volume Picks Up for SW Airlines

by Arthur Hill

After surging in March-April, SW Airlines (LUV) went into corrective mode with a falling wedge in May-June. This wedge is still falling, but volume on up days is starting to increase. The bounce in early June occurred on above average volume and Wednesday’s volume was the third highest of the month. Read More 

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QQQQ Turns Indecisive

by Arthur Hill

The Nasdaq 100 ETF (QQQQ) formed a doji on Thursday to signal indecision at support. Doji look like plus signs because there is little change from open to close. In addition, notice that QQQQ closed in the middle of its high-low range. The candlestick looks like a small plus sign (+).  Read More 

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Euro and Gold Dancing Together

by Arthur Hill

The Euro ETF (FXE) and the Gold ETF (GLD) have been moving step-for-step over the last three months. In broad terms, both declined into mid April, advanced into early June and declined over the last two weeks. Read More 

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Triple Bottom Breakdown For CCL

by Arthur Hill

Carnival Corp (CCL) came up on the Triple Bottom Breakdown scan. After failing to hold its May breakout (blue arrow), the stock broke support with a sharp decline in June. You can probably see some other patterns at work here as well. Think Fibonacci, wedge and broken support. Read More 

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Consumer Discretionary Lagging in June

by Arthur Hill

The S&P Sector PerfChart from 2-June until 11-June shows the consumer staples, healthcare and consumer discretionary sectors lagging the broader market. Each is down over 2%, while the S&P 500 is up .02% (a fraction) over this timeframe. It is a strange trio, but it is probably most noteworthy that consumer discretionary has gone from a leader to a laggard in the last few weeks. Read More 

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QQQQ Channels Higher

by Arthur Hill

June has been one choppy month, but the Nasdaq 100 ETF (QQQQ) continues to work its way higher within a rising channel. This channel features a series of higher highs and higher lows that define the 9 day uptrend.  Read More 

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Semiconductors Leading The Charge

by Tom Bowley

The semiconductor group has been very influential during the recent rally.  In fact, the SOX has been outperforming the S&P 500 since late in 2008.  A key relative resistance area has been approached, however.  Whether the market can sustain a move higher could hinge significantly on how semiconductors continue to perform on a relative basis. -Tom Bowley Join Tom and the Invested Central Team at www.investedcentral.com.  Invested Central is an education-first stock trading service that provides its members with their flagship product - the Daily Market Read More 

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Over 60% of Nasdaq Stocks above their 200-day

by Arthur Hill

The percentage of Nasdaq stocks that are trading above their 200-day moving average reached its highest level since early 2006. As the chart below shows, fewer than 10% of Nasdaq stocks were trading above their 200-day moving average in March. With the March-June rally, 60.46% of Nasdaq stocks are now trading above their 200-day moving average. Read More 

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Growth Leading Value

by Arthur Hill

As the price relative below shows, the S&P 500 Growth ETF (IVW) is outperforming the S&P 500 Value ETF (IVE). The price relative is simply a plot of the IVW:IVE ratio (enter IVW:IVE for the symbol). The ratio increases when IVW (numerator) rises more than IVE (the denominator). Read More 

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Homebuilders Bounce

by Arthur Hill

Even though the major stock indices were trading sharply lower on Monday afternoon, a few of the homebuilders showed nice gains. The gainers are easy to spot using the S&P Sector Carpet. As the blue arrows show, Lennar (LEN) was the second biggest gainer and DR Horton (DHI) was the fifth highest gainer. Read More 

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Inverse Head-and-shoulders For Ixia

by Arthur Hill

As its name implies, an inverse head-and-shoulders is an upside down version of the normal head-and-shoulders. Ixia (XXIA) has a one such pattern with a neckline breakout this week. Notice that upside volume started increasing as the right shoulder unfolded. Read More 

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Corporate Bonds and Treasuries Diverge

by Arthur Hill

Investors are showing a clear preference for corporate bonds over treasury bonds. The chart below shows the 10-Year US Treasury Note ($UST) and the DJ Corporate Bond Index ($DJCBP) going their separate ways since March. $UST is down around 7% since mid March, but $DJCBP is up around 9%. Read More 

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An Island Top for Barclays

by Arthur Hill

Barclays Plc (BCS) came across the island top scan from Tuesday’s close. Notice how the stock gapped up, held the gap for one day with a doji and then gapped down with high volume on Tuesday. The doji represents an island where buyers are now trapped with a loss. In other words, Monday’s buyers are in the red after Tuesday’s gap down. Read More 

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Net New Highs Remain Flat

by Arthur Hill

Even though stocks have been rising since early March, the cumulative Net New Highs indicator has been flat since early March. This shows a virtual stalemate between new 52-week highs and new 52-week lows. Obviously, the market can rally with a stalemate. Trouble could start if this indicator moves lower again. Read More 

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Airlines Fly High

by Arthur Hill

The Amex Airline Index ($XAL) surged around 5% with a big move off support on Monday. Notice how broken resistance around 16 turned into support in late April and again in May. Today’s bounce reinforces support and makes XAL one of the industry group leaders on Monday. Read More