Don't Ignore This Chart

Oil Service HOLDRS Runs into Resistance after Gap

by Arthur Hill

The Oil Service HOLDRS (OIH) surged over 30% in October and hit resistance in the 137 area. Resistance here stems from broken support and the August highs.  This level also marks a 61.80% retracement of the prior decline and the ETF is quite overbought after the October run. Click this chart for a live image. Read More 

Don't Ignore This Chart

October is Clearly Risk-On Month with SPY and USO Leading

by Arthur Hill

Chartists can measure the market’s risk tolerance by comparing the simple line charts for four ETFs. The S&P 500 ETF (SPY) and US Oil Fund (USO) rise when risk is “on”, while the 20+ year Bond ETF (TLT) and US Dollar Fund (UUP) rise when risk is “off”, Notice how the market moved from risk-off in September to risk on in October. SPY and USO bottomed and surged as TLT and UUP peaked and plunged. Read More 

Don't Ignore This Chart

Indecision Creeps into the Steel ETF

by Arthur Hill

The Steel ETF (SLX) surged above its mid October high with a big move on Monday, but turned indecisive on Tuesday and Wednesday. Notice how Tuesday’s candlestick was completely within the range of Monday’s. The pattern here is a Harami. This indecision extended as Wednesday’s range was again contained within Monday’s range. Consider it a double Harami. This is currently indecision within an uptrend. Watch support at 48 a change of mind. Read More 

Don't Ignore This Chart

Retail HOLDRS Forms Evening Doji Star Reversal

by Arthur Hill

After a surge to the early July high, the Retail HOLDRS (RTH) formed a rare evening doji star. This bearish candlestick reversal pattern features a white candlestick, a doji and a long black candlestick. There are gaps on either side of the doji. This doji has a long upper shadow, but it is still a doji. Also notice that RTH was overbought as CCI was above +100 for an extended period. Read More 

Don't Ignore This Chart

Ciena Fails to Hold Breakout

by Arthur Hill

Sometimes a failed signal is as good as a signal. Ciena (CIEN) broke resistance with a surge above 12.50 on Friday-Monday, but failed to hold this breakout after Tuesday’s high-volume decline. A long black candlestick formed as the stock opened slightly lower, moved down throughout the day and closed weak. Read More 

Don't Ignore This Chart

Eaton Corp Breaks Pennant Resistance with Volume

by Arthur Hill

There were a lot of consolidation breakouts the last two days. After a surge the first week and a half of October, many stocks and ETFs consolidated for a week or so. With strength the last two days, these same stocks and ETFs are breaking consolidation resistance. The chart below shows Eaton Corp (ETN) breaking pennant resistance with big volume. Read More 

Don't Ignore This Chart

Sector Rotations Show a Split Market Since July

by Arthur Hill

The Sector PerfChart below shows the performance for four sectors relative to the S&P 500. The Technology ETF (XLK) and the Consumer Discretionary SPDR (XLY) have been outperforming the S&P 500 since July 11th, while the Industrials SPDR (XLI) and Finance SPDR (XLF) have been underperforming. S&P 500 performance has been stymied by the finance and industrials sectors. Read More 

Don't Ignore This Chart

Market Carpet Highlights Leaders in the Finance Sector

by Arthur Hill

The Finance SPDR (XLF) was leading the market higher late Thursday afternoon. Chartists can check in on the Sector Market Carpet to find the leaders within a particular sector. First, click on the sector heading to isolate the sector. Second, right click with the mouse and choose “Show Ticker Symbol”. Fifth Third (FITB) and Keycorp (KEY) have the greenest boxes and are leading today. Read More 

Don't Ignore This Chart

Broadcom Triggers Triple Top Breakout on P&F Chart

by Arthur Hill

Broadcom (BRCM) triggered a Triple Top Breakout with a move above the September highs on the P&F chart. The stock shows two resistance levels with two X-Columns peaking in the 37 box. The break above the 38 box also broke the Bearish Resistance Line. More P&F signals can be found near the bottom of the predefined scans page. Read More 

Don't Ignore This Chart

Regional Bank SPDR Challenges Resistance with Big Move

by Arthur Hill

A day after failing at resistance just a day ago, the Regional Bank SPDR (KRE) is right back challenging the late summer highs. KRE dropped below 21 with a sharp decline on Monday, but surged back above 21.50 with an even bigger move on Tuesday. Volume also expanded and resistance is under siege. Read More 

Don't Ignore This Chart

Caterpillar Forms Bearish Engulfing at Key Retracement

by Arthur Hill

Caterpillar came across the Predefined Scans page with a Bearish Engulfing pattern. This page is updated throughout the day so chartists can find patterns as they happen. CAT formed a Bearish Engulfing with an open above 84 and close below 82. Notice that this intraday reversal formed at a key retracement and at resistance from the triangle apex. Read More 

Don't Ignore This Chart

XLY and XLK Lead with Move above September High

by Arthur Hill

As of Thursday’s close, the Technology ETF (XLK), Consumer Discretionary SPDR (XLY) and Utilities SPDR (XLU) were the only sectors SPDRs trading above their September 15th closing high. The S&P 500 was still just below, while the Finance SPDR (XLF) was well below (3.26%). This means the technology and consumer discretionary sectors are showing relative strength since September 15th. Read More 

Don't Ignore This Chart

JP Morgan Leads Finance Sector Lower with Gap Down

by Arthur Hill

JP Morgan kicked off earnings season for the finance sector with a failure at resistance. After a 10+ percent surge the prior seven days, the stock hit resistance in the 33-34 area and gapped down on Wednesday. The big trend is clearly down and a break above 34 is needed to think otherwise. Read More 

Don't Ignore This Chart

QQQ Gets Cold Feet at Resistance

by Arthur Hill

The Nasdaq 100 ETF (QQQ) surged all the way to its September high and formed a small black candlestick with a modest upper shadow on Wednesday. This shows that the ETF moved above 57 intraday, but failed to hold these gains and closed near the low for the day. The 57 area marks resistance and 5-period RSI is overbought for the third time since late August. Read More 

Don't Ignore This Chart

Dow Industrials SPDR Moves into the Red Cloud

by Arthur Hill

With a big surge the last 5-6 days, the Dow Industrials SPDR (DIA) moved into the red cloud. This chart shows DIA breaking below the cloud in early August. This cloud now turns into a resistance zone that holds the key to the current downtrend. You can read more on Ichimoku Clouds in our ChartSchool. Read More 

Don't Ignore This Chart

Exxon Mobil Breaks Above Resistance

by Arthur Hill

After at least four attempts, Exxon Mobil (XOM) finally broke above 75 and exceeded resistance. This level held from mid August until today. The breakout zone around 74-75 becomes first support. A below 74 would question the validity of this breakout. Read More 

Don't Ignore This Chart

The Battle Lines are Drawn as the Gold SPDR Consolidates

by Arthur Hill

After a sharp decline in September, the Gold SPDR (GLD) moved into a consolidation the last two weeks. Support resides at 155 and resistance 162.50. Traders should watch these levels for the next direction clue. Also watch the Dollar. Gold bounced this week as the Dollar declined, but a bounce in the Dollar would be negative for bullion. Read More 

Don't Ignore This Chart

Gold Miners ETF Fills Gap with Bounce off Support

by Arthur Hill

The Gold Miners ETF (GDX) is making waves with an oversold bounce off support the last two days. The ETF briefly broke below its June low on Tuesday, but recovered with the rest of the market and filled the gap with a strong close. Also notice that RSI moved below 30 (oversold) and bounced. Read More 

Don't Ignore This Chart

F5 Networks Surges off Support with Big Volume

by Arthur Hill

F5 Networks (FFIV) formed a doji near the August low and then surged off this support level with two long white candlesticks. Volume was also above average both days. In the indicator window, the Accumulation Distribution Line bottomed in August and formed a higher low in early October. Money appears to be moving into FFIV. Read More 

Don't Ignore This Chart

QQQ Forms Bullish Engulfing At Support

by Arthur Hill

With a lower open and sharp advance in the final hour, the Nasdaq 100 ETF (QQQ) formed a large bullish engulfing on high volume. Also note that this pattern comes with a successful, for now, test of the August lows. Now let’s see if the bulls can follow through on this one day reversal. Read More 

Don't Ignore This Chart

Campbell Soupd and Newmont Show Gains on the Market Carpet

by Arthur Hill

It was a sea of red on Monday as stocks declined sharply. All sectors were down, but there were a few isolated gainers. These can be found on the Sector Market Carpet. Two come from the consumer staples sector (Campbell Soup and Lorillard). One comes from the precious metals group (Newmont) Read More