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Shanghai Composite Forms Large Inverse Head-and-Shoulders

by Arthur Hill

The Shanghai Composite ($SSEC) has been drifting lower since July 2009, with a decline that looks like an inverse Head-and-Shoulders pattern. The neckline is sloping down, which affirms the current downtrend. A break above the neckline and the 2011 high is needed to complete the pattern and reverse the two year downtrend. Read More 

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Aussie Dollar Breaks Wedge Trendline

by Arthur Hill

With commodities on the rebound this week, the Australian Dollar Trust (FXA) surged over the last two days and broke the upper trendline of a falling wedge. The Aussie Dollar, Canadian Dollar, New Zealand Dollar and S. African Rand are considered commodity currencies because their economies are dependent on raw materials exports. Read More 

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CIT Group Forms Bullish Engulfing Pattern

by Arthur Hill

With a weak open and strong close in the stock market, quite a few stocks made the Bullish Engulfing and Piercing Pattern scans. In particular, CIT Group (CIT) formed a bullish engulfing within a triangle pattern. A follow through breakout would confirm this bullish candlestick reversal. Read More 

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Intrepid Potash Traces out Volatile Triangle

by Arthur Hill

Intrepid Potash (IPI) formed a volatile triangle within a downtrend. The trendline extending down from the February high and the upper trendline of the triangle converge to mark resistance. There could very well be a failure here. Alternatively, watch this level for a breakout. Read More 

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Big Techs Turn Green with Long White Candlestick

by Arthur Hill

With a weak open and strong close, the Nasdaq 100 ETF (QQQ) formed a long white candlestick that is just as long as Tuesday’s candlestick. Volume surged to its highest level since mid March. The lows of these two candlesticks now mark an important short-term support level. Read More 

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Starbucks Breaks Channel Trendline with Big Surge

by Arthur Hill

Starbucks (SBUX) got a jolt over the last five days with a surge above the upper trendline of a falling channel. Maybe it has something to the grand opening in the Brussels train station! Taking a step back, this pattern looks like a massive flag and the breakout signals a continuation higher. Read More 

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Most Active Techs Lead the Market Higher

by Arthur Hill

From the Free Charts page, we can see that the 10 most active Nasdaq and NYSE stocks are up in early trading on Tuesday. Gains are especially strong on the Nasdaq. The image below comes from the CandleGlance link just under the most active list. Microsoft has been moving higher for four days and Oracle is up the last three days (including today).  Read More 

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Apple Forms Hammer After Support Break

by Arthur Hill

After breaking support with rather high volume the last three days, Apple (AAPL) formed a hammer candlestick that dipped below 315 intraday. The stock still has a gap to contend with and needs to fill this gap to confirm the hammer. You can find more hammers on the predefined scan page.  Read More 

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Finance and Housing Moving Step-for-Step

by Arthur Hill

The Home Construction iShares (ITB) and the Finance SPDR (XLF) have been moving together the entire year. The indicator window shows XLF in black and ITB in red. Not much difference between these two price patterns. In the main window, ITB is testing support from broken resistance and the 50-62% retracement zone.    Read More 

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Dell Shows Relative Strength and a Bear Flag

by Arthur Hill

While the stock market swooned over the last few weeks, Dell Inc (DELL) held its ground and did not break its late May lows. In fact, the stock has been edging higher the last three weeks. The indicator window shows the Price Relative rising to a new high for 2011. Relative strength is bullish, but traders need to watch support from the June low as a rising (bearish) flag could be taking shape. Read More 

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Five Stocks Bucking the Bears on the Market Carpet

by Arthur Hill

Stocks were down rather sharply on Wednesday, but a few were bucking the trend with gains. These can be found by looking for a little green in the Sector Market Carpet. Boston Scientific (BSX), Novellus (NVLS) and Network Appliance (NTAP) are attracting buyers on a big down day.  Read More 

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All Nasdaq Most Active Stocks are Moving Higher

by Arthur Hill

Stocks finally caught a bid with the Nasdaq leading the way higher. The image below comes from the Free Charts Page. All Nasdaq most actives are up. 8 of 10 NYSE most actives are up with Citigroup and Bank of America as the only decliners. Users can click the PerfChart or CandleGlance links at the bottom to see all ten stocks. Read More 

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Commodity Index Fund Hits Price and Momentum Resistance

by Arthur Hill

The Commodity Index Fund ($DBC) surged back above 30 in June, but is near resistance from broken support and the 62% retracement mark. Also notice that RSI is trading in its resistance zone (50-60) after becoming overbought. This is a make-or-break area for DBC.  Read More 

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Predefined Scans Page Shows Surge in Bearish Scan Hits

by Arthur Hill

The Predefined Scans page features color coded bars so users can see when scans are active. Red bars show a decrease in hits. Green bars show an increase in hits. Today’s intraday scan shows a sharp increase in the number of stocks making the cut in bearish scans. Click on the linked numbers to see the results of any scan. Click this image to see the scans page. Read More 

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Internet ETF Forms Spinning Top Near Key Retracement

by Arthur Hill

The FirstTrust Internet ETF (FDN) has been moving lower with the rest of the market, but firmed the last two days. A doji formed on Tuesday and a small spinning top on Wednesday. This firmness is also occurring near the 62% retracement mark and the ETF is short-term oversold.  Read More 

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QQQ Breaks Ichimoku Cloud

by Arthur Hill

With the decline over the last several weeks, the Nasdaq 100 ETF (QQQ) broke below the Ichimoku Cloud for the third time since March. The ETF recovered quickly after the first two breaks. Also notice that the cloud is poised to turn red, which happens when the red line is above the green line. You can read more on Ichimoku Clouds in the ChartSchool. Read More 

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Auto Nation Traces out Possible Head-and-Shoulders Reversal

by Arthur Hill

Auto Nation (AN) is tracing out a clear Head-and-Shoulders pattern, but remains short of a confirming support break. The most recent signal was a triangle breakout last week. AN has since moved back into triangle support. A move below 32.5 would break support and argue for a trend reversal. Read More 

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Cornerstone OnDemand Bucks the Market with a Bullish Engulfing

by Arthur Hill

Despite yesterday’s sharp decline, a number of stocks bucked the selling pressure by gaining on the day or forming bullish candlestick patterns. Cornerstone OnDemand ($CSOD), which debuted on March 17th, formed a bullish engulfing and gained on Wednesday. Follow through above resistance would confirm this pattern. Read More 

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Bearish Engulfing Scan Fills up as Stocks Decline Sharply

by Arthur Hill

There are over 200 stocks across the various exchanges on Wednesday’s bearish engulfing scan. From the NYSE, FedEx (FDX) formed a bearish engulfing on the first day of the month in both May and June. Wednesday's big bearish engulfing occurred on expanding volume. Read More