Here are the top 10 technical charting developments that happened during 2010 as selected by our crack staff of technical analysts. See if you agree...
10. Apple surpassed Microsoft in market capitalization on May 26th and gained over 50% on the year.
Apple is currently valued around $298 billion, while Microsoft’s market cap is around $239 billion. Both recorded around $65 billion in sales for the prior year. No prizes for guessing which is growing the fastest.
9. Shanghai Composite continues to show relative weakness.
8. Nikkei 225 ($NIKK) perked up with a November breakout.
The index broke neckline resistance from an inverse head-and-shoulders pattern and held this breakout as prices continued higher in December. The relative strength comparative, which compares Nikkei performance to the S&P 500, turned up sharply in November and pulled back in December. Will outperformance continue in 2011?
7. Dow Theory remains on a buy signal.
6. Small-caps continue to lead large-caps and show no signs of relative weakness.
5. Resurgent finance sector takes over market leadership.
The PerfChart below shows the S&P 500 with the nine sector SPDRs over the last five weeks. Industrials, materials, energy and finance are leading the way. It is a strange group, but relative strength in finance is positive for the market overall. It is also strange that technology and consumer discretionary are lagging.
4. Bonds decline as stocks move higher.
3. Agriculture prices breakout of a two year consolidation.
2. Oil breaks diamond resistance and exceeds $90 for the first time since the Lehman Brothers collapse.
1. Long-term rates are poised to challenge resistance from a 20+ year downtrend.
So there is our recap of 2010 from a Technical charting perspective. Do you agree? What were your top 10 technical developments of 2010?
****** Happy New Year! ******