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A P&F triple bottom break for Whirlpool

by Arthur Hill

Whirlpool (WHR) came across the triple bottom break scan. The stock is in a clear downtrend with lower lows and lower highs since May. WHR broke triple bottom support twice in the next few days and the downside price objective is 74. This objected is based on traditional P&F counts. Click this image for details Read More 

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Akamai gaps down from resistance

by Arthur Hill

For the second time in two months, Akamai (AKAM) gapped down from resistance at 46. The stock first hit resistance here in mid June and gapped down in late June. AKAM moved back to resistance in July, but failed again with another gap and high-volume decline. Click this image for details Read More 

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Flowserve with P&F triangle breakout

by Arthur Hill

Flowserve (FLS) came across the bullish triangle alert page from the P&F pattern scans. On the P&F chart, notice how the stock broke above the bearish resistance line with a surge above 98. As far as Point & Figure is concerned, this chart remains bullish as long as the blue bullish support line holds. Click this image for details Read More 

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Apple stalls with 3 inside days

by Arthur Hill

While the market continued higher the last three days, Apple (AAPL) stalled with three inside days. This stall comes after last week’s wedge breakout, which is still holding. A move below last week’s gap (252) would negate the breakout. Click this image for details Read More 

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Dollar Index becomes oversold

by Arthur Hill

The US Dollar Index ($USD) became oversold as RSI moved below 30 last week. In addition, notice that the index has retraced just over 62% of the March-June advance. A channel has taken shape since early June and traders should watch for a channel breakout to reverse this downtrend. Click this image for details Read More 

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DAX has yet to break down

by Arthur Hill

Despite all the troubles in Europe, the German DAX ($DAX) remains in a uptrend since March 2009 and has yet to roll over. The index is above its 12-month moving average and MACD(5,35,5) is positive. However, notice that index retraced 50-62% of its prior decline and is starting to stall. This is a critical area to watch. Click this image for details Read More 

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Bonds remain in long-term uptrend

by Arthur Hill

The 20+ Year T-Bond ETF (TLT) continues to trend higher within a large rising price channel. The ETF surged above the channel during the finance crisis of 2008, but returned to this channel in 2009 and resumed its rise in 2010. Long-term support is set at 85. Click this image for details Read More 

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S&P 500 breaks 12-month moving average

by Arthur Hill

The monthly chart below shows the S&P 500 holding its 12-month moving average throughout long-term moves over the last 9 years. A decisive close above or below this 12-month moving average has been indicative of a long-term trend change, which occurred last month. Also notice that MACD(5,35,5) moved below its signal line and into negative territory. Click this image for details Read More 

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XLK outperforms SPY in July

by Arthur Hill

Believe it or not, the Technology SPDR (XLK) is outperforming the S&P 500 ETF (SPY) in July. The chart below shows four price relatives comparing the performance of the Technology SPDR (XLK), Industrials SPDR (XLI), Financials SPDR (XLF) and Consumer Discretionary SPDR (XLY) to the S&P 500 ETF (SPY). The XLK:SPY ratio (pink) moved sharply higher in July, but the other three moved lower. Techs cannot do it alone. Click this image for details Read More 

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Finance leads the way lower

by Arthur Hill

The PerfChart below shows the percentage change for the nine sector SPDRs over the last five days (last week). Stocks were holding up well until Friday. With Friday’s sharp decline, finance is now showing relative weakness because it declined more than the S&P 500 and more than any other sector. Click this image for details Read More 

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Cummins forms bearish engulfing near resistance

by Arthur Hill

Cummins Engine came across the bearish engulfing scan as it opened strong and closed weak near resistance. The stock failed in the 74-76 area in April, May and June. July marks the fourth attempt. A move above resistance would break resistance from a rather large symmetrical triangle. Click this image for details Read More 

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Euro-SPY connection remains

by Arthur Hill

There was a little delay, but the positive correlation between the Euro the US stocks remains in place. The Euro ETF (FXE) bottomed on June 29 and SPY bottomed two days later. FXE surged in early July and SPY followed the Euro high the second week of July. Click this image for details Read More 

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Selling Pressue in OBV for Apple

by Arthur Hill

The Apple chart shows signs of increased selling pressure with a steady decline in On Balance Volume (OBV) the last 2-3 months. OBV peaked in mid April, formed a lower high in late June and moved to new lows in July. With Apple (AAPL) hitting a new high in late June, a large bearish divergence is taking shape in OBV. Also notice the volume on down days is consistently higher than volume on up days. Click this image for details Read More 

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Nasdaq P&F chart shows downtrend

by Arthur Hill

The Nasdaq Point & Figure chart sports a clear downtrend with a bearish resistance line and a downside price objective around 1900. According to this chart, the trend will remain down until there is a break above the bearish resistance line, which is currently around 2345. Click this image for details Read More 

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Fidelity Funds carpet view

by Arthur Hill

Even if you do not invest in Fidelity Funds, the Fidelity Funds Carpet can be used to find outperforming and underperforming groups. Over the last 6 days, bond funds have been lagging and international funds have been leading. Within the US, Energy Services are leading and Gold is lagging. Click this image for details Read More 

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Relative strength in XLU

by Arthur Hill

Over the last 10 trading days, the Utilities SPDR (XLU) is the only sector sporting a gain. Utilities show both absolute and relative strength. Click this image for details Read More 

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IWM closes weak and leads lower

by Arthur Hill

The Russell 2000 ETF (IWM) surged above 61 intraday, but gave up sizable gains and closed near 59. The ETF even closed below last week’s low. The indicator window shows the IWM:SPY ratio, which compares small-caps to large-caps. This ratio is moving lower as small-caps lead lower. Click this image for details Read More 

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SPX declines 9 out of 10 days

by Arthur Hill

The S&P 500 is now down nine of the last 10 days. Notice the nine red candlesticks and the lone black candlestick. In addition, the Commodity Channel Index (CCI) has been oversold since the decline below 1040. Click this image for details Read More 

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China leads lower in 2010

by Arthur Hill

Of the six equity indices shown below, the Shanghai Composite ($SSEC) is the weakest in 2010 with a 27.56% loss (year-to-date). The Nikkei 225 ($NIKK), French CAC 40 ($CAC) and London FTSE ($FTSE) are all down double digits. The S&P 500 is holding up relatively well with a 7.87% loss. In a big of a surprise, the German DAX ($DAX) is holding up the best with a 1.68% loss. Click this image for details Read More 

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Nasdaq new 52-week lows expanding

by Arthur Hill

New 52-week lows are expanding on the Nasdaq and new 52-week highs are drying up. Net New Highs (new 52-week highs less new 52-week lows) is an easy way to assess the battle for new 52-week extremes. Net New Highs first dipped below -100 in early May and has dipped below this level four more times since then. An uptrend is pretty much impossible as long as Net New Highs remain negative. Click this image for details Read More