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S&P 500 tests 12-month moving average

by Arthur Hill

With the May decline, the S&P 500 tested the rising 12-month moving average for the first time since breaking above in July. Also notice that MACD (5,35,5) turned positive for the first time since the first half of 2008. The bulls are in good shape as long as MACD is rising and SPX holds its 12-month SMA. Click this image for details Read More 

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$SPX is stuck in the middle

by Arthur Hill

Talk about the lost decade. With the May decline, the S&P 500 is trading in the middle of its 10 year range. Note that this is a semi-log scale that reflects percentage change. We are looking at the mother of all consolidations. Click this image for details Read More 

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Retail SPDR establishes clear resistance

by Arthur Hill

The Retail SPDR (XRT) is finding support just above the rising 150-day EMA with two white candlesticks in the last four days. There was a follow through attempt on Wednesday, but the ETF closed weak to establish resistance instead. Look for a move above Wednesday’s high to reverse the five week slide. Click this image for details Read More 

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Elder's Weekly New Highs - New Lows

by Chip Anderson

Here's a 8 year look at a new market indicator that we just added to the website - the "Weekly New High - New Low Index" popularized by Dr. Alexander Elder in his books. Click here for a live version of this chart. The index (in yellow and red) has the S&P 500 overlaid on top of it for context. The index is computed by counting up all of the US stocks (on any of the three major exchanges) that are making new 52-week highs and subtracting all of the US stocks that are making new 52-week lows.  That gets you the "Daily" version of this index ($USHL).  To Read More 

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Garmin forms triangle consolidation

by Arthur Hill

After a gap down and sharp decline in early May, Garmin (GRMN) formed a triangle consolidation the last few weeks. The gap and support break around 36 are bearish. A break below triangle support would signal a continuation of this decline. Click this image for details Read More 

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A double top for the BRIC ETF ($BKF)

by Arthur Hill

The BRIC ETF (BKF) has a large double top working over the last 6-9 months. With the April-May decline, the ETF broke support from the February low to confirm this pattern. Based on traditional technical analysis, the projected decline is to the low 30s. The height of the pattern is subtracted from the support break. Click this image for details Read More 

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Apollo bucks the trend

by Arthur Hill

With the stock market down sharply in early trading on Thursday, Apollo Group (APOL) sticks out a like a sore thumb with a 2+ percent gain. The stock appeared to break support last week, but recovered with a high volume surge on Monday. Today’s gain in the face of market weakness shows relative strength. Click this image for details Read More 

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Finance sector ekes out a gain

by Arthur Hill

Stocks were mostly lower on Wednesday, but the Financials SPDR (XLF) managed a small gain. A snapshot from the Market Summary page shows the nine sector SPDRs. XLF is the only gainer as the ETF test the early May lows.  Click this image for details Read More 

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Market Summary Carpet reflects recent rotations

by Arthur Hill

The Market Summary can be viewed as a web page or as a Market Carpet. The snapshot below shows the Market Summary Carpet over the last 22 days (one month). There are a few green spots and lots of red. US Treasuries, the Dollar, Gold and Miners are the only gainers in the past month. Consumer staples, utilities and REITs held up the best among the losers.  Click this image for details Read More 

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An evening star for Netflix

by Arthur Hill

Netflix (NFLX) is up over 100% from its January lows, which makes it one of the top performers this year. However, signs of selling pressure are starting to creep in. First, the stock formed a bearish harami in late April and declined to 90. Second, a bearish evening star formed last week. Watch support at 100. Click this image for details Read More 

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Cumulative Net New Highs flatten out

by Arthur Hill

From the breadth charts page, users can get a glimpse of the AD Lines and cumulative Net New Highs lines for the NYSE, Nasdaq and Amex. The image below shows the cumulative Net New Highs lines for the NYSE and Nasdaq. Both flatted over the last two weeks, but have yet to turn down. This shows a standoff between new 52-week highs and new 52-week lows. A downturn in these lines would reflect an uptick in new 52-week lows. Click this image for details Read More 

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Markets returns to risk

by Arthur Hill

Last week was all about safety. This week is all about risk. The Sector PerfChart shows the offensive sectors outperforming the defensive sectors over the last four trading days. All sectors are up on an absolute basis. However, the consumer discretionary, technology, industrials and finance are up the most on a relative basis - relative to the S&P 500 that is. Click this image for details Read More 

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Bovespa Index tests support

by Arthur Hill

The Brazilian Bovespa Index ($BVSP) is testing support in the 62,000 area. There is a support zone from 60,000 to 61,300 that extends back to the late October low. The index has been swinging from this support zone to a resistance zone in the low 70,000 area. Brazil is part of the BRIC ETF (BKF). Click this image for details Read More 

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Dr. Elder's Take on Last Week's Volatility

by Chip Anderson

Alexander Elder and his partner Kerry Lovvorn put together this chart analysis of last week's market action: Click here for a live version of this chart. The chart uses our new version of Dr. Elder's Impulse Trading System to color the bars. "FI" refers to the "Force Index" which is the lowest indicator on the chart.  You can see more of their work at SpikeTrade.com. Read More 

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Financial SPDR enters retracement zone

by Arthur Hill

With a sharp decline the last four days, the Financials SPDR (XLF) entered a key retracement zone that may offer support. The area around 14.86-15.29 marks a 50-62% of the February-April rally. XLF is also oversold after a 12% decline in four weeks. Click this image for details Read More 

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$VIX Spikes Up Above 35 - What Does That Mean For the Market?

by Chip Anderson

Today's wild day cause the Volatility Index ($VIX) to spike up above 35 for the first time during the current market uptrend.  The follow chart shows what the market has done in the past when that signal has occurred: Click here for a live version of this chart. In the late 90's the market ignored the signal and kept climbing until May of 2000 when $VIX gave the signal a third time (or came really close to giving it, we only have close data for $VIX at that time). In 2007, the same signal occurred twice just before and after the market topped. Today Read More 

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QQQQ returns to broken resistance

by Arthur Hill

The Nasdaq 100 ETF (QQQQ) is gearing up for the first test since the support break at 49. With a decline back to 46.70, the ETF is now back to broken resistance from the January highs. This area now becomes a possible support level to watch in the coming days. Read More 

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Wal-mart surges off support

by Arthur Hill

Despite a sharp decline in the stock market on Tuesday, Wal-mart managed a small gain near support and then surged on Wednesday with pretty good volume. This stock is a big part of the consumer staples sector. Click this image for details Read More 

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CandleGlance of the most active

by Arthur Hill

The most active lists for Monday show 9-1 winners-losers for the NYSE and 8-2 for the Nasdaq. This table is updated throughout the day on the Free Charts page. Users can even click the CandleGlance link to see 10 small charts of these most active stocks. The image below shows 4 of the 10 NYSE most active. Click this image for details Read More 

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An evening doji star for Home Depot

by Arthur Hill

Home Depot formed a rare evening doji star last week. Note the long white candlestick and surge above 36, the gravestone doji with the gap up and the long red candlestick last Monday. Also note the gaps on either side of the gravestone doji. Click this image for details Read More