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Broken Resistance Turns Support for GDX

by Arthur Hill

The Gold Miners ETF (GDX) is in for a big test as broken resistance turns into support. GDX broke resistance around 41-42 with a big surge in September. This level turned into support, and held, in early October. After a sharp decline the last two weeks, GDX is once again testing this important level.  Click this chart for details. Read More 

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Bond Funds Outperform

by Arthur Hill

Even if you do not trade Fidelity Funds, the Fidelity Funds Carpet can be useful for providing an overview of market action. All stock index funds, domestic equity funds and international funds are down over the last 10 days (lots of red). The only green (gains) can be found in the bond funds.  Click this image for more details. Read More 

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Small-caps Lead Decline

by Arthur Hill

The Major US Markets Perfchart shows the Russell 2000 ($RUT) leading the way lower over the last two weeks. Notice that the Russell 2000 has not even been positive (above 0%) over the last 10 days. In contrast, the other major indices were in positive territory at some point over the last 10 days.  Click this image for more details. Read More 

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Bearish Engulfings Mark Resistance for JNPR

by Arthur Hill

Two big bearish engulfing patterns solidify resistance around 28-28.5 for Juniper Networks (JNPR). JNPR first established resistance at 28 with a doji. A few weeks later, the stock opened strong and closed weak to form its first high-volume bearish engulfing. After a pullback and second attempt at 28.5, the stock again formed a bearish engulfing with even higher volume. This shows lots of supply around 28-28.5. Read more on candlestick reversals in the chart school. Click this chart for details.    Read More 

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Intel Hits Support Zone

by Arthur Hill

After a decline the last eight days, Intel (INTC) is showing signs of firmness near a support zone. First, notice that the decline retraced 62% of the prior advance. Second, notice that broken resistance turns into support. Third, notice that MACD has a bullish divergence working. A break above 20.5 would reverse the eight day downtrend.  Click this chart for details. Read More 

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Bollinger Band Contraction for PAYX

by Arthur Hill

The Bollinger Bands are contracting as Paychex (PAYX) trades within a narrow range this month. First, you can see the bands narrowing significantly this week (blue arrows). Second, the Bollinger Band Width indicator is trading at its lowest level in over four months. A volatility expansion often follows a volatility contraction. Click this chart for details. Read More 

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LMT Breaks Support on P&F Chart

by Arthur Hill

Looking across the P&F scan page on Thursday, I came across Lockheed Martin (LMT) with a quadruple bottom breakdown. Actually, this is a quintuple bottom break down. After four bounces off support, LMT broke through on the fifth try. Based on traditional P&F targeting, the downside projection is to around 62. Click this image for more details. Read More 

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Negative Money Flow for XLB

by Arthur Hill

Even though the Materials SPDR (XLB) is challenging resistance from the September highs, Chaikin Money Flow remains in negative territory. In fact, CMF has been negative throughout October. This shows underlying weakness in the current advance. With XLB stalling near its September highs the last five days, a break below Tuesday’s low would argue for a pullback. Click this image for more details. Read More 

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A big Support Test for KB Home

by Arthur Hill

A number of chart features are coming together to mark support around 15 for KB Home (KBH). First, the decline retraced 62% of the prior advance. Second, broken resistance turns into support. Third, the stock firmed the last three weeks. The only remaining wild card is the direction of the triangle break. Click this chart for details. Read More 

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Volume By Price Resistance for the Dow

by Arthur Hill

Much has been make about Dow 10,000 this week, but technicians may want to focus about 500 points higher instead. The chart below shows Volume-by-Price for the Dow Industrials. Notice that the longest bar is around 10500-11000. This represents a potential resistance zone in the coming weeks or months. Click this chart for details. Read More 

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Best Buy Hits a Ceiling

by Arthur Hill

Point&Figure charts are great for showing support and resistance. Best Buy (BBY) hit a ceiling at 42 over the last five months. A breakout above resistance (another “X”) would trigger a bullish signal and target further strength towards the next resistance level at 48. Click this chart for details. Read More 

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Inter-market Leaders for 2009

by Arthur Hill

With the Dow hitting 10,000 on Wednesday, it is a good time to check the intermarket PerfChart for 2009. West Texas Intermediate ($WTIC) is by far the biggest winner this year with a gain around 55%. Gold-Continuous Futures ($GOLD) is up around 24% and the Dow is up 11.87%. Bonds and the Dollar are in negative territory for the year. Click this image for more details. Read More 

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Net Highs Outpacing New Lows

by Arthur Hill

The top of the predefined scan page says it all. New 52-week highs are outpacing new 52-week lows, by a wide margin. In fact, new 52-week lows are in the single digits for all four exchanges shown on the table. No sign of weakness here. Click this image for more details. Read More 

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Retail HOLDRS Forge New High

by Arthur Hill

The Retail HOLDRS (RTH) continues its up trend with another 52-week high on Tuesday. The chart below shows prices over the last 12 months and Tuesday's close in the highest. In the indicator window, notice that RTH is keeping pace with the S&P 500 (red line). Click this chart to see details. Read More 

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Bonds Drop Sharply

by Arthur Hill

The intermarket chart below shows bonds (blue line) taking a hit last week. The 30-year Treasury Bond ($USB) fell back toward support from its September lows. Weakness in bonds is understandable with West Texas Intermediate ($WTIC) challenging its summer highs. Click here for John Murphy’s Intermarket Perfchart. Click this chart for details. Read More 

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Materials and Energy Score Big

by Arthur Hill

The Energy SPDR (XLE) and the Materials SPDR (XLB) started October with a bang. Over the last five days, XLE is up over 8% and XLB is up over 6%. The Financials SPDR (XLF) comes in a close second with a 5.74% gain. All three easily outperformed the S&P 500. Click this chart for details. Read More 

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SPY Gaps Higher

by Arthur Hill

SPY is at it again with its second gap this week. The ETF gapped higher on Tuesday and held the gap zone. After a triangle consolidation, SPY gapped above 106 this morning to create another gap zone that marks first support. Click this image for more details. Read More 

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XLE Zigzags Higher

by Arthur Hill

The chart below shows the Energy SPDR (XLE) with a 5% Zigzag. This indicator filters out smaller fluctuations by only identifying moves of at least 5%. XLE is currently zigzagging up with higher highs and higher lows. A break below the October low would reverse this uptrend. Click this image for more details. Read More 

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Yield Curve Remains Positive

by Arthur Hill

With short-term rates near zero and long-term rates around 4%, the yield curve is clearly positive. This sharply positive slope reflects loose monetary policy at the Fed that is designed to stimulate the economy. For reference, the yield curve was flat in October 2007 as short-term rates were near 4%. Click this chart for details. Read More 

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Financials Light up Market Carpet

by Arthur Hill

The Financial sector lit up the Market Carpet on Monday with the most green. Three of the top five gainers came from the Financial sector. The consumer discretionary sector was second with two of the top five gainers on Monday. Click this chart for more details. Read More 

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Dow Tests 50-day Moving Average

by Arthur Hill

With a sharp decline the last seven days, the Dow Industrials is testing is 50-day moving average, which is currently at 9457. This is the first test of the moving average since the Dow surged in mid July. Click this chart for details. Read More 

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BAC Tests Support

by Arthur Hill

Bank of America (BAC) is testing support around 16.5 as the stock starts showing relative weakness. Support around 16.5 stems from the mid September lows and triangle trendline. BAC shows relative weakness because the stock failed to exceed its August high, but the S&P 500 formed a higher high in September. Click this image for more details. Read More