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Sector Performance Outside of Energy Remains Mixed in 2011

by Arthur Hill

The sector PerfChart shows the relative performance of the nine sectors. Relative performance equals the sector gain less the gain in the S&P 500. Year-to-date, the energy sector is the only standout performer. Of the other eight, seven are relatively weak and only the industrials sector is outperforming the S&P 500. Read More 

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Bombay Sensex Index Celebrates Semi-Final Win $BSE

by Arthur Hill

The India Sensex Index ($BSE) is celebrating India’s semi-final win in the Cricket World Cup with a breakout over the last few days. Actually, the breakout occurred before the win. Stocks tend to lead major sporting events by a few days (joke). Read More 

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Russell 2000 ETF Forges Quadruple Top Breakout

by Arthur Hill

On the P&F chart, the Russell 2000 ETF affirmed support around 77 with a sharp reversal the last two weeks. This reversal was strong enough to forge a Quadruple Top Breakout as the current X-Column broke above the equal highs of the prior three X-Columns. Read More 

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Volatility Contracts as Bollinger Bands Narrow for Garmin

by Arthur Hill

After surging above its October high, Garmin moved into a consolidation and volatility contracted. Notice how Bollinger Band Width moved below the January low and to its lowest level in months. This volatility contraction could foreshadow a volatility expansion. Watch support and resistance for the first direction clue. Read More 

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2011 Commodities: Oil and Silver Lead as Gold and Copper Lag

by Arthur Hill

The year-to-date commodity PerfChart shows Silver and Oil as the big winners. Both are up more than 15%. Gold is also up, but barely as it finished 2010 near $1420. A surge over the last two weeks brought Copper back to its 2010 high. Read More 

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Stocks and Bonds Go Their Separate Ways

by Arthur Hill

After a gap down and weak open on Wednesday, the stock bulls found their wind and pushed stocks higher. At the same time, the bond bulls lost their wind as the 20+ year Bond ETF (TLT) moved sharply lower. Read More 

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Comparing Candlesticks for SPY and $SPX - SPY Reflects a True Open

by Arthur Hill

Even though the S&P 500 and the S&P 500 ETF (SPY) track quite well over the medium-term and long-term, daily candlestick action can be quite different. The S&P 500 is an index that prints a price seconds after the market open. More often than not, the S&P 500 prints a price **before all of its components have opened** for trading. This first price does not always reflect market realities, especially when a big gap is expected. Candlesticks on Friday and Monday are quite different for SPY and $SPX. The S&P 500 formed a small white candlestick with a long upper shadow on Read More 

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Retail SPDR Holds Support with Bullish Wedge $XRT

by Arthur Hill

The Retail SPDR (XRT) held up quite well in March as broken resistance turned into support at 47.5 the last few weeks. After a surge in early February, a falling wedge evolved and the ETF established resistance at 49.10 this week. A move above this level would break wedge resistance and argue for higher prices. Read More 

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CAKE Meets Resistance at the 50-day SMA

by Arthur Hill

Sometimes the 50-day SMA works like a charm for support/resistance and other times not. Cheesecake Factory (CAKE) appears to be in the former category. The stock formed a rising wedge in March, met resistance at the 50-day last week and turned lower the last four days.   Read More 

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Intuit Forges Higher Low with High Volume Gap Up

by Arthur Hill

Intuit (INTU) surged on Friday with a nice gap on the highest volume of the month. With a higher low forming around 48, the overall uptrend remains in place. As they say on the London Tube: mind the gap. This gap is bullish as long as it holds. A move back below 49 would call for a reassessment. Read More 

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DJ Stoxx 50 Index Hits Support from Key Retracement

by Arthur Hill

After falling off the cliff the last few weeks, the DJ Stoxx 50 Index hit support from a familiar retracement. The decline to around 2460 retraced 62% of the prior advance. There is also support in this area from the October-November lows. The European stock index bounced off support on Thursday and added to gains on Friday. Note: this is an end-of-day (EOD) index, which means its price will be updated after the close. Read More 

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Retail SPDR Tests Resistance Breakout with Falling Wedge

by Arthur Hill

After breaking resistance with a surge in early February, the Retail SPDR (XRT) returned to the breakout with a decline the last few weeks. This decline is tracing out a falling wedge pattern. Support is at hand from broken resistance, but a move above wedge resistance is needed to reverse the four week slide. Read More 

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Bonds Benefit from Weakness in Stocks and Commodities

by Arthur Hill

John Murphy’s Intermarket Study PerfChart shows money moving out of stocks and commodities over the last two weeks. Weakness in the CRB Index gave a little lift to the Dollar and a flight-to-safety provided a serious lift for bonds. Read More 

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Homebuilders Buck the Trend with a Nice Gain

by Arthur Hill

The Home Construction iShares (ITB) opened weak with a gap below 13, but recovered its early losses and closed with a 1.07% gain on the day. Not bad considering the circumstances. The overall trend since mid January remains down, but there is a big support battle raging around 13. A break above the early March high would reverse the two month slide. Read More 

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DOG Breaks Falling Trendline as the Aroon(Up) Surges

by Arthur Hill

Unsurprisingly, the ProShares Short Dow 30 Fund (DOG) moved lower as the market trended higher from September to February. As with November, the ETF is making another reversal attempt as it broke the late August trendline and Aroon(Up) surged above 90. This positive develop remains in force as long as Aroon(Down) remains below 70 and below Aroon(up). Click here too see our predefined Aroon Oscillator scan or our ChartSchool article. Read More 

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Gold Miners ETF Attempts Bullish Engulfing at Key Retracement

by Arthur Hill

After a sharp decline the first four days of the week, the Gold Miners ETF (GDX) quickly firmed on Friday with a bullish engulfing taking shape Friday afternoon (1:18PM). Also note that this pattern formed with a low at the 62% retracement mark. Despite the promise for a bounce, GDX is underperforming bullion over the last few months. Read More 

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Market Carpet Reveals Gainers within a Sea of Red

by Arthur Hill

Stocks are down sharply as of this writing, but there are a few bucking the trend with gains. Chartists can find such rogue stocks with the Sector Market Carpet. The green squares show the gainers and the top five are listed to the right. Starbucks is leading with break above its February highs earlier this week and new 52-week high today. Read More 

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Sector CandleGlance Shows Leading and Lagging Sectors

by Arthur Hill

CandleGlance charts provide a quick group snapshot. The screenshot comes from the S&P Sector SPDR CandleGlance group. Only four of the nine are shown. Click the image to see all. The Utilities SPDR (XLU) and the Healthcare SPDR (XLV) are clearly showing relative strength with a surge the last 2-3 weeks. Conversely, the Basic Materials SPDR (XLB) shows relative weakness with a decline over the same period. Read More 

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Bullish P&F Scan Results Still Outpacing Bearish Results

by Arthur Hill

There are 17 P&F related scans on the pre-defined scans page. Of the major patterns shown below, the first four patterns are bullish and the second four are bearish. Currently, there are over 250 stocks with bullish Triple Top Alerts and over 550 stocks with bullish Ascending Triple Top alerts. Conversely, there are less than 100 stocks with Triple Bottom alerts and less than 150 stocks with Descending Triple Bottom alerts. The bulls still have an edge in P&F land. Read More 

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Iron Mountain Bucks the Market with a Gain on Good Volume

by Arthur Hill

Stocks were broadly lower on Monday, but a few bucked the trend with gains. Simply scanning for stocks that gained on a day like today will reveal those showing some relative strength. The chart below shows Iron Mountain (IRM) hitting support from the October trendline and broken resistance zone. The stock edged higher on above averge volume on Monday. Follow through is needed for a breakout. Read More 

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Gap Continues to Mark Resistance for QQQQ

by Arthur Hill

For the second time in two weeks, the Nasdaq 100 ETF (QQQQ) surged and met resistance from the 22-Feb gap. While failure at the gap is negative, the overall trend remains up as QQQQ battles the lower trendline of a rising price channel. Also note that Thursday’s gap up is coming into play. A move below this gap zone and this week’s low would be quite negative. Read More 

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Industrials Lead the Way by Lighting up the Market Carpet

by Arthur Hill

The S&P Sector Market Carpet provides an easy visual to identify the leaders and laggards over a given timeframe. Clicking on the sector name puts the focus on that sector. Hover over the squares to see the name, ticker and percent change. Robert Half (RHI), a new-school industrial stock, is leading the way with a 5% gain. Even the worst performer, Quanta (PWR) shows a small gain today. Read More 

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Costco Forms Bearish Engulfing Near Prior High

by Arthur Hill

A bearish engulfing forms when a long black candlestick engulfs the body of the prior white candlestick. This means the open is above the prior close and the close is below the prior open. It is a reversal day that can foreshadow lower prices. Costco formed such a pattern on the highest volume in three weeks. See our pre-defined scans page for many more bearish engulfing patterns. Read More 

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Sector Action Turns Defensive on Market Summary Page

by Arthur Hill

All sectors were down in afternoon trading on Tuesday, but some were down less than others. In particular, the Utilities SPDR (XLU), Consumer Staples SPDR (XLP) and Healthcare SPDR (XLV) were holding up relatively well with modest losses. Money can be seen moving out materials, consumer discretionary, finance, industrials and technology.  Read More