Don't Ignore This Chart

Linear Tech Leads Semis with Triangle Breakout

by Arthur Hill

Linear Tech (LLTC) formed a large triangle over the last three months and broke resistance with a surge this week. Also notice that the stock broke above its September highs. Semis are showing upside leadership and this is positive for the tech sector. Read More 

Don't Ignore This Chart

A head-and-shoulders pattern for Greek equities

by Arthur Hill

The DJ Greece Index ($GRDOW) shows a potential head-and-shoulders pattern evolving over the last five months. This version is a continuation pattern. A move below the October low would confirm the pattern and target lower prices. Read More 

Don't Ignore This Chart

An ascending triangle for Vertex

by Arthur Hill

After a trendline breakout in August, Vertex Pharma (VRTX) traced out a potentially bullish ascending triangle. Notice the higher low in early October and the equal highs in August and September. A break above the September high on good volume would confirm this bullish pattern. Read More 

Don't Ignore This Chart

Oil Services and Internet Lead the Market

by Arthur Hill

John Murphy’s industry group perfchart shows oil services and internet stocks leading the market since August 27th. It's a rather motly pair. Banks are the biggest laggards. In a bit of a surprise, gold and silver stocks ($XAU) are also lagging the broader market. Read More 

Don't Ignore This Chart

Energy Fund ETF backs off range resistance

by Arthur Hill

The Multisector Energy Fund (DBE) has been stuck in a trading range since late May. Range support is set near 25 and range resistance near 22. With the October pullback, the ETF has failed at resistance and showed weakness. Look for a break above this week’s high to reverse the slide.  Read More 

Don't Ignore This Chart

Russell 2000 ETF forms bearish engulfing as MACD turns down

by Arthur Hill

With a strong open Thursday morning and a sharp move lower in the afternoon, the Russell 2000 ETF has a bearish engulfing pattern working on the day. The bulls started in control, but the bears clearly took control in the afternoon. Also notice that the MACD-Histogram turned negative three days ago, indicating that MACD moved below its signal line. Read More 

Don't Ignore This Chart

Nasdaq %Above 50-day SMA reaches overbought levels $NAA50R

by Arthur Hill

The Nasdaq %Above 50-day SMA ($NAA50R) is trading near the prior 2010 highs. This indicator surged to the mid 70s in January and again in April. Prior moves to this area signaled overbought conditions that led to a pullback. Read More 

Don't Ignore This Chart

Homebuilder ETF fails at resistance $XHB

by Arthur Hill

The Homebuilders SPDR (XHB) surged to resistance at the end of Septmeber, but failed to follow through with a breakout in October. After trading flat for two weeks, the ETF is starting to move lower and showing relative weakness. Again. Read More 

Don't Ignore This Chart

German DAX breaks ascending triangle resistance

by Arthur Hill

The German DAX Index ($DAX) continues to lead the world with an ascending triangle breakout. These are bullish continuation patterns. The height of the pattern (±700) is added to the resistance breakout for an upside target. With resistance at 6350, this targets a move to around 7000. Read More 

Don't Ignore This Chart

Google powers Nasdaq 100 above April high

by Arthur Hill

With a little help from Google (and Apple), the Nasdaq 100 surged above the April high this week to record a new 52-week high. Large techs are showing relative strength as one of the first groups to break this high. Google broke out of a long channel in mid September and the January high marks the next resistance area. Read More 

Don't Ignore This Chart

Finance and consumer discretionary sectors bloody the market carpet $XLK $XLY

by Arthur Hill

The sector market carpet shows lots of red in the consumer discretionary and finance sectors. Four of the five biggest losers come from the consumer discretionary sector. The finance sector also has quite a few dark red squares, indicating stocks with relative weakness. Technology remains a bright spot with three of the top five gainers (green). Read More 

Don't Ignore This Chart

Noble Drilling appears in bullish engulfing scan $NE

by Arthur Hill

With a weak open and strong close in stock market, 70 securities appears on the bullish engulfing scan for the Nasdaq and NYSE. The chart below shows Noble Drilling (NE) surging in early September, correcting into early October and then forming a bullish engulfing on Tuesday. Read More 

Don't Ignore This Chart

SMH challenges summer highs

by Arthur Hill

The Semiconductor HOLDRS (SMH) continues to show relative strength as it surges to its summer highs. Reaction highs in June-July mark a resistance zone around 28.7. The indicator window shows the price relative (SMH:SPY ratio) bottoming in early September and moving higher the last 4-5 weeks. Read More 

Don't Ignore This Chart

XLK challenges head-and-shoulders resistance

by Arthur Hill

The Technology ETF (XLK) has been consolidating the last two weeks with a small inverse head-and-shoulders pattern. This pattern is best viewed using intraday charts. Neckline resistance resides around 23.3-23.5 and the ETF is testing this area for the fourth time since 27-Oct. A breakout would signal a continuation higher. The right shoulder lows mark support at 23. Read More 

Don't Ignore This Chart

Alcoa breaks September highs

by Arthur Hill

Alcoa is showing upside leadership with a surge and break above short-term resistance the last few days. Upside volume has also been impressive. The charts below come from the Dow CandleGlance page, which shows small candlestick charts for all 30 Dow components. Read More 

Don't Ignore This Chart

AMAT stalls with two inside days - harami

by Arthur Hill

After a surge on Tuesday, Applied Materials (AMAT) stalled on Wednesday to firm an inside day and harami. This pattern extended on Thursday as the stock again traded within Tuesday’s range. A consolidation within an 5-week uptrend is forming. Watch the boundaries for the next signal. Read More 

Don't Ignore This Chart

Intermarket Perfchart Reflects Risk-on Trade

by Arthur Hill

The risk-on trade remains alive and well in October. As the Perfchart below shows, stocks, oil and gold are strong, while bonds and the Dollar are weak. The relationships reflect a market that is embracing risk. Strength in the Dollar and bonds would start to suggest otherwise. Read More 

Don't Ignore This Chart

Weak Dollar is bullish for stocks

by Arthur Hill

When it comes to stocks, it’s all about the Dollar the last four weeks. The chart below shows the Euro Currency Trust (FXE) rising along side the S&P 500 ETF (SPY). The bottom window shows the Dollar Bullish ETF (UUP) falling. A weak Dollar makes US exports more competitive and acts as a economic stimulus. Read More 

Don't Ignore This Chart

StochRSI becomes oversold for $QQQQ

by Arthur Hill

With a move below last week’s lows, the Nasdaq 100 ETF (QQQQ) broke below consolidation support and StochRSI became oversold for the first time since late August. This oversold reading looks like a sign of weakness because it is occurring along side the support break. Read More 

Don't Ignore This Chart

$EBAY appears on bearish engulfing scan

by Arthur Hill

The bearish engulfing scan on the pre-defined scans page at StockCharts.com featured 105 Nasdaq stocks and 177 NYSE stocks. The chart below shows EBAY with a rather large bearish engulfing pattern on Thursday. Trendline support is set at 24. Follow through below this level would confirm the bearish engulfing. You can read more about candlestick reversal patterns in our ChartSchool. Read More