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LUV Forges Bear Trap with Failed Support Break

by Arthur Hill

Southwest Airlines (LUV) broke support with high volume in late April, but quickly recovered this support break with a surge back above 11.60 the last few days. Despite this quick recovery, signs of indecision are showing with the upper shadows in the candlesticks. There is a resistance zone around 11.8-12 and follow through above this level would be most positive. Read More 

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All Four Dow Averages Hit New Highs

by Arthur Hill

The Dow Industrials, Dow Transports, Dow Utilities and Dow Composite all broke above their March-April highs and recorded 52-week highs this week. From a Dow Theory stand point, the new highs in the Industrials and Transports are especially promising because they affirm the uptrend. Read More 

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Semiconductor HOLDRS Challenges 2011 Highs SMH

by Arthur Hill

It all started with the Intel earnings effect five days ago as the Semiconductor HOLDRS (SMH) gapped above 35. After stalling for two days, the ETF continued hiher and is now challenging the February-March highs. Semis are starting to show relative strength again and this bodes well for techs. Read More 

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Airline Index Bounces of Key Retracement and Breaks Trendline

by Arthur Hill

Is this bounce for real or just another dead-cat bounce? The Amex Airline Index ($XAL) hit the 62% retracement area in mid April and surged above the wedge trendline on Tuesday. Also notice that MACD formed a bullish divergence and moved above its signal line. Things are looking up for the airlines. Read More 

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Healtcare and Staples Show Relative Strength

by Arthur Hill

Even though stocks are up over the last 30 trading days, sector leadership leaves something to be desired. The Finance is badly lagging, while the materials and energy sectors are leading. Also notice that the healthcare and consumer staples show relative strength. Read More 

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Intraday Gap Scan Shows Early Movers

by Arthur Hill

The predefined scans page at StockCharts.com is updated throughout the day. Checking just after the open is an easy way to spot early movers, both up and down. The runaway gap-up scan featured over 5 NYSE stocks and 16 Nasdaq stocks at 10:14AM ET. Among these runaway gaps, the chart below shows Yum Brands ($YUM) gapping up over 5% on Thursday’s open. Read More 

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A Hammer and Gap Lead to Breakout at Qlogic

by Arthur Hill

The hammer and gap play is everywhere this week. It started with an intraday recovery on Monday and continued with a gap-surge on Wednesday. QLGC formed such a combo over the last three days and broke above the early April trendline. Read More 

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Materials Sector Remains Strong in Market Carpet

by Arthur Hill

The S&P Sector Market Carpet provides a colorful snapshot of sector performance over a given timeframe. The screen grab below shows a 5-day Price Performance Market Carpet. Stocks in the materials sector are up an average of 1.7% the last five days (leading). Stocks in the technology are down an average of .8% (lagging). Read More 

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Apple Forms Piercing Line in Support Zone

by Arthur Hill

Apple (AAPL) declined into its support zone with a  close below 330 on Friday. After a weak open and further weakness early Monday, the stock moved higher and closed strong to firm a piercing line. This bullish candlestick reversal is featured on the predefined scans page. Also notice that volume was the highest in four weeks. Read More 

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Intuit Hits New High as Tax Day Hits

by Arthur Hill

Intuit (INTU), the maker of Turbo Tax Software, appears to like tax day. The stock broke above wedge resistance with a long white candlestick on Thursday and hit a 52-week high on Friday, April 15th. Read More 

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Time Warner Firms with Hammer at Support

by Arthur Hill

After hitting the bullish engulfing scan on Tuesday, Time Warner is set to appear on the hammer scan for Thursday. The stock surged in February and then retraced around 50% with a decline to the 35 area. The stock has been firming in this area since mid March and a high volume follow through to today’s hammer would be bullish. Click here to see our scan page. Read More 

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Dell Surges off Support with Good Volume

by Arthur Hill

For the second time in three months, Dell Inc (DELL) surged above 15 with big volume. The stock pulled back to broken resistance and bounced off support twice in mid March and early April. Today’s big surge solidifies support and suggests that DELL has begun a bigger uptrend. Read More 

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Semiconductor HOLDRS Fails at Key Retracement

by Arthur Hill

The Semiconductor HOLDRS surged at the beginning of last week, but hit resistance from the same retracement and plunged this week. The 62% retracement marked resistance in late March and again in early April. Today’s gap down and trendline break are negative with a big support test at 33.5 looming. Read More 

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Scan for 3 Black Crows Turns up MDY

by Arthur Hill

Three Black Crows is a bearish candlestick reversal pattern with three black filled candlesticks. A candlestick is filled when the close is below the open. Despite this bearish pattern, volume remains relatively low and support from broken resistance is at hand. Click here to see our scan page with candlestick patterns. Read More 

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Intermarket PerfChart Shows Commodities Surging as Dollar Plunges

by Arthur Hill

Some key intermarket relationships remain alive and well in 2011. First, commodities have been moving higher as the Dollar weakens. Second, bonds have been moving lower as commodities advance. Rising commodity prices increase inflationary pressures and this in turn puts pressure on bonds. Read More 

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Netflix Forms Outside Reversal at Resistance

by Arthur Hill

Bearish candlestick patterns marked the prior two reaction highs in Netflix and the stock formed an outside reversal on Wednesday. Strictly speaking, this is not bearish engulfing because Tuesday’s candlestick is actually black. A bearish engulfing requires a white candlestick to be engulfed by a black candlestick. Therefore, I will be safe and just call it an outside reversal. The consequences are the same. Read More 

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Microsoft Springs to Life with a Gap

by Arthur Hill

After a dismal February and early March, Microsoft is making up for some lost ground with a surge over the last three weeks. The stock gapped up on Tuesday with above average volume and followed through above its late March high with a good gain on Wednesday. Read More 

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Retail Apparel Group Leads Market Higher

by Arthur Hill

The Retail SPDR (XRT) surged to another 52-week high today with strength coming from the retail apparel group. Candleglance chart groups for over 50 industries can be found at the top of the third column on the FreeCharts page. This snapshot from the Retail-Apparel group shows Abercrombie & Fitch (ANF) leading today’s charge.  Read More 

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A Momentum and Price Breakout for Quadra Mining

by Arthur Hill

After a rough start at the beginning of the year, Quadra Mining (QUX.TO) may be finding its feet with a high volume breakout. The stock surged to a 4-week high on the highest volume in four weeks. The indicator window shows RSI also breaking out to its highest level since mid January. Read More 

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Stocks Surge, but Intel Breaks Flag Support

by Arthur Hill

Despite a rather broad market rally early Friday, Intel ($INTC) was under pressure with a sharp decline that broke flag support. The mid March gap proved too tough and this flag break signals a continuation lower.   Read More