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Nasdaq breadth leads lower

by Arthur Hill

The AD Line and cumulative Net New Highs line shows relative weakness in Nasdaq stocks. From the breadth indicators page at Stockcharts.com, the chart below shows these two Nasdaq indicators moving sharply lower the last three weeks. The cumulative Net New Highs lines for the NYSE and Amex are still holding up. Read More 

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Dow bounces near key retracement

by Arthur Hill

With the close at 10040 on Tuesday, the Dow retraced around 61.8% of its prior advance (Jul-Aug). This Fibonacci retracement sometimes marks a reversal zone. The Dow managed to recover after dip below 10000 on Friday and close above 10100. Resistance might not be far off through. The 50-day and 200-day moving averages are a few hundred points above current levels. Read More 

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Malaysia bucks the world trend

by Arthur Hill

Stocks markets around the world have been moving lower the last few weeks, but there are some pockets of strength to be found in Asia. As this snippet from the CandleGlance International iShares page shows, the Malaysia iShares (EWM) shows relative strength as it trades near its highs for the month. Also note that the Indonesia ETF (IDX) is also near its highs. Read More 

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AAPL dominates Nasdaq 100 and QQQQ

by Arthur Hill

A look at the Market Indices Carpet in market cap mode shows Apple (AAPL) taking up the most real estate with the largest rectangle. This means Apple carries the most weight in the index. Click the “Nasdaq 100” header to focus on the Nasdaq 100. Click the market cap button at the bottom left (middle) to change to market cap mode. Hover over the squares to see each ticker and click the square to see a line chart on the left.  Read More 

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XLU bucks the trend

by Arthur Hill

Stocks were down sharply in afternoon trading on Tuesday, but the Utilities (SPDR) was bucking the trend with a small gain. As this screen grab from the Market Summary page shows, XLU was the only sector in positive territory. Looks like utilities like low interest rates. Read More 

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Sector performance is mixed for 2010

by Arthur Hill

Year-to-date sector performance shows five up and four down. In a rather strange twist, the consumer discretionary and industrial sectors are up, but the technology and finance sectors are down. Performance for the S&P 500 reflects the net result for the nine sectors (down 4.28%). Read More 

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SPY fills gap on volume increase

by Arthur Hill

The S&P 500 ETF (SPY) gapped up on Tuesday and then filled that gap with a long red candlestick on Thursday. The inability to hold the gap is clearly negative. Also notice that volume increased as the ETF declined last week and this week. Read More 

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Financials dominate most active list

by Arthur Hill

Half of the 10 most active NYSE stocks on Wednesday came from the finance sector. The Free Charts page at Stockcharts.com shows the 10 most active for the Nasdaq and NYSE. Even though the market was mixed today, nine were up and only one was down. All five financials were up. Users can click on the candleglance link to see small candlestick charts for all ten stocks. Click this image for the charts Read More 

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China and XLB moving together

by Arthur Hill

The Shanghai Composite ($SSEC) and the Materials SPDR (XLB) have been moving together in 2010. The moves in XLB are a little more exaggerated, but the positive correlation is clear. Most recently, both bottomed in early July and moved higher the last six weeks. Read More 

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Gold shines in August

by Arthur Hill

Outside of gold, August has been a tough month for commodities. The PerfChart below shows performance for six commodity related ETFs. Only one is up. Metals, Oil and Natural Gas are down rather sharply. Gold, in contrast is up over 2%. In an interesting twist, notice that gold is up and silver is down. Read More 

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"Hindenburg Omen" Tracking Chart

by Chip Anderson

The "Hindenburg Omen" has been getting lots of press this week so I thought I'd put up a chart that people can use to track this elusive prophet of doom.  All the different factors that go into the Omen's signal can be found in this article.  This chart can be used to follow along and see if another "Unconfirmed Omen signal" occurs like it did on Thursday.   Here's how the chart looked after Thursday's close when the latest signal happened:  (Click here for a live version of this chart.) The Omen signal looks at the ratio of NYSE New Read More 

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Bonds go parabolic - $UST

by Arthur Hill

Bonds have been on a tear since April with the 10-Year US Treasury Note ($UST) advancing some 8% in three months. The DJ Corporate Bond Index ($DJCBP) is not far behind with a 4.4% gain since early June. The advances over the last two months are exceptional sharp and look parabolic in nature. Read More 

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Five stocks bucking the decline

by Arthur Hill

Stocks were down sharply with a broad based decline on Wednesday, but there were a few stocks swimming against the tide. The S&P Sector Market Carpet provides an easy means to visual scan for green stocks in a sea of red. Carefusion (CFN), Macy’s (M), Western Digital (WDC), CF Industries and Metro PCS (PCS) clearly stood out on Wednesday. Read More 

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An island reversal for the Industrials SPDR

by Arthur Hill

With a gap up eight days ago and a gap down on Wednesday, the Industrials SPDR (XLI) formed an island reversal. Notice how the ETF gapped above 30.5 and largely held above this level for seven days. That ended with a large gap down that signals a reversal. MACD moved below its signal line as well. Click this image for details Read More 

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Bollinger Bands narrow for Apple

by Arthur Hill

Apple (AAPL) continues to consolidation within a relatively narrow range. The stock has traded between 266 and 254.90 for the last 13 days. Falling volatility is confirmed with the Bollinger BandWidth indicator, which shows the bands at their tightest in over five months. The direction of the consolidation break holds the next clue. Click this image for details Read More 

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Broken resistance turns support for IWM

by Arthur Hill

A classic tenet of technical analysis is that broken resistance turns into support (and visa versa). The Russell 2000 ETF (IWM) broke the April trendline and resistance from its mid July high with a surge above 64.5 in late July. This broken resistance zone (63.8-64.5) now turns into a key support zone to watch this week. Click this image for details Read More 

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Risk-on trade favors stocks and oil

by Arthur Hill

The intermarket relationships over the last five weeks show stocks and oil rising together. On the other side, bonds, the Dollar and gold are down since early July. This looks like the classic “risk-on” trade. Strength in stocks and oil reflects an increased appetite for risk. Click this image for details Read More 

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Bonds test support ahead of employment report

by Arthur Hill

The 20+ Year T-Bond ETF (TLT) is at a make-or-break level with two key employment related releases over the next two days. An improving employment picture would likely lead to a support break, but further weakness in the employment numbers could keep bonds buoyant. Click this image for details Read More 

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Nasdaq underperforming the NY Composite

by Arthur Hill

Ratio charts allow chartists to compare the performance of one security against another. The chart below plots the ratio of the Nasdaq and the NY Composite. The Nasdaq is underperforming because this ratio ($COMPQ:$NYA) has been falling since June.  Click this image for details Read More 

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Nikkei remains short of breakout

by Arthur Hill

While the S&P 500 moved above its mid July high, the Nikkei 225 ($NIKK) remains short of a breakout and within a downtrend still. $NIKK surged to resistance last week, but fell just short of 9800 and pullback on Friday. A break above this resistance level is needed to reverse the downtrend. Click this image for details Read More