Don't Ignore This Chart

September 2010

Don't Ignore This Chart

Nasdaq Bullish% Index remains stuck

by Arthur Hill

Despite the sharp September rally, the Nasdaq Bullish% Index ($BPCOMPQ) remains stuck in a consolidation and has yet to break its summer highs. The Bullish Percent Index broke support with the May decline and needs to break above current resistance to negate the current P&F sell signal. Click the imaqe below to see 16 sector and index Bullish Percent charts. Click this image for live charts Read More 

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Doji signals indecision for DIA

by Arthur Hill

The Dow Industrials SPDR(DIA) signaled indecision on Wednesday with a small doji. Wednesday marks the fourth straight close in the 108-109 area. Doji can sometimes foreshadow a reversal, such as in early August. Alternatively, doji can simply mark a rest in the uptrend, such as mid September. Read More 

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Energy edges towards resistance $XLE

by Arthur Hill

The Finance SPDR (XLF) and the Energy SPDR (XLE) are the only two sectors that have yet to break their summer highs. XLE is close as it works its way higher after a pennant breakout seven days ago. With this advance, the ETF is now trading at the upper trendline of a large triangle formation. Read More 

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Techs and healthcare lead the September surge $XLK $XLV

by Arthur Hill

The S&P Sector PerfChart shows the percentage change for the nine sectors and the S&P 500. Those up more than the S&P 500 are leading. Those up less are lagging. In a surprising twist, both the technology and healthcare sectors are leading the S&P 500 higher. Also notice that the consumer discretionary is leading. Relative strength in technology and consumer discretionary bodes well for the market overall. Read More 

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Point & Figure breakout for QQQQ

by Arthur Hill

After consolidating for a few days, the Nasdaq 100 ETF (QQQQ) broke resistance with a surge on Friday. In fact, the 30-minute PnF chart shows an ascending triangle taking shape this week. These are bullish continuation patterns. Read More 

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Finance SPDR fails at resistance $XLF

by Arthur Hill

With a sharp decline the last three days, the Finance SPDR (XLF) failed at resistance for the fifth time since late May. In addition, the chart below shows the ETF breaking short-term support with a gap down. Deja vu? The price relative moved to a new low as finance continues to shows relative weakness. *LINEBR** Read More 

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Consumer discretionary SPDR hits channel resistance $XLY

by Arthur Hill

The Consumer Discretionary SPDR (XLY) is one of the leaders in September, but the ETF is now stalling near the upper trendline of a rising price channel. The lower trendline was drawn first and the upper trendline is parallel from the late July high. This trendline extension coincides with the 62% retracement as well. Read More 

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Google breaks Volume by Price resistance

by Arthur Hill

With a high volume surge the last three days, Google (GOOG) broke above Volume by Price resistance around 500. The stock also broke above its summer highs and has shown relative strength in September. Read More 

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Up, Up and Away? $XAL

by Chip Anderson

via stockcharts.com Airline stocks have been in the new recently and here's why. They are very close to punching through the recent resistance zone around 42. The expanding Bollinger Bands reflect the recent volatility in the sector, but a close above 42 would go a long way towards legitimizing this move. Read More 

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Midcap SPDR also forms inverse head-and-shoulders $MID

by Arthur Hill

In addition to the S&P 500 ($SPX), the S&P MidCap 400 ($MID) formed an inverse head-and-shoulders pattern over the last four months and broke neckline resistance with a surge on Monday. MACD also remains in bull mode as it remains in positive territory and above its signal line. See our chart school articles on chart patterns for more details. Read More 

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Large techs leading the large-caps

by Arthur Hill

The Nasdaq 100 ($NDX) represents large-cap tech stocks and the S&P 100 ($OEX) represents large-cap everything. We can compare these two with the price relative or $NDX:$OEX ratio. With this ratio plot breaking to new highs, it is clear that $NDX is leaving $OEX in the dust.  Read More 

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Schwab stalls at trendline resistance

by Arthur Hill

After a high volume surge at the start of September, Charles Schwab (SCHW) moved into a trading range the last two weeks. The pattern this month looks like a flat flag with resistance at the May trendline. A move above 14.10 would break flag resistance and expanding volume would confirm the breakout. Read More 

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Info Tech Bullish Percent Index remains below 50% $XLK

by Arthur Hill

Since moving below 50% in June, the Info Tech Bullish% ($BPTECH) has been oscillating above/below the 50% line the last three months. This reflects indecision and a tug-of-war between bulls and bears. The overall trend is down for BPI, which gives the current edge to the bears. Look for a break above 55% to turn this indicator bullish. You can read more on BPI in our chart school article. *LINEBR** Read More 

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A flag breakout for the Bovespa

by Arthur Hill

The Brazilian Bovespa Index ($BVSP) is one of the best performing markets since late May. After surging in July, the index formed a large falling flag in August and broke above flag resistance the last few days. This calls for a continuation of the uptrend with the April high marking next resistance. Read More 

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$GDX forms exhaustion gap at resistance

by Arthur Hill

The Gold Miners ETF (GDX) surged to resistance at the end of August and then formed a big bearish engulfing the first trading day of September. After stalling on Thursday-Friday last week, the stock gapped up on Tuesday and then came down hard Wednesday-Thursday this week. The gap failed and it is looking like an exhaustion gap at resistance. Read More 

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Small-caps show relative weakness

by Arthur Hill

Even though the market as a whole was up on Thursday afternoon, a quick look at the intraday market summary reveals some relative weakness in small-caps. Of the 10 major indices shown, the Russell 2000 ($RUT) and the S&P 600 SmallCap Index ($SML) are the only two losers. Large-caps (S&P 100) and techs (Nasdaq) are relatively strong. Read More 

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Net New Highs surge on TSX

by Arthur Hill

With a big move in the TSX Composite ($TSX) over the last two weeks, Net New Highs surged to their highest level since April. Notice that Net New Highs turned positive in early July, strengthened in August and then broke above +50 in late August. Read More 

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China leads the summer rally $SSEC

by Arthur Hill

It has been quite a roller coaster the last two months. The S&P 500 (red) surged in July, fell sharply in August and surged over the last few days. While the S&P 500 went on its roller coaster ride, the Shanghai Composite (black) surged in July and consolidated in August. After relative weakness at the beginning of summer, China is showing relative strength in late summer. Read More 

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A sea of green as Rowan leads

by Arthur Hill

The S&P Sector Market Carpet shows a sea of green on Monday. All sectors were up sharply with consumer discretionary (+1.7) and technology (+1.6) showing the biggest average gains. Keep in mind that these numbers represent the average gain or loss for all stocks in the sector, not the gain or loss for the SPDR (XLY or XLK). Rowan (RDC) shows the biggest gain of all. Read More