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Electronic Arts Bounces off Support with Bullish Engulfing

by Arthur Hill

Electronic Art (ERTS) declined to the August low in mid January and then firmed the last two weeks. A bullish engulfing formed on Friday as the stock opened weak and closed strong. ERTS follow up on this pattern with a breakout on above average volume. The trend since November remains down and the November trendline marks the next hurdle. Click this chart for a live image Read More 

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Oracle Stalls at Key Retracement

by Arthur Hill

Oracle (ORCL) surged back above 28 this month, but stalled the last few weeks as resistance came into play. First, notice that broken support turns resistance around 28.50. Second, the stock retraced 50-61.80% of the prior decline. A pennant formed the last two weeks and traders should watch these boundaries for the next directional signal. Click this chart for a live image Read More 

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Spot Light Crude Forms Bull Wedge

by Arthur Hill

Spot Light Crude ($WTIC) surged above 100 in the second half of December and then formed a falling wedge in January. A decline in oil is unusual because the Dollar is down over the last few weeks and stocks are up. A move above 102 would break wedge resistance and signal a continuation of the December surge. Click this chart for a live image Read More 

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Regional Bank SPDR Forms Big Bearish Engulfing

by Arthur Hill

With stocks opening strong and then moving sharply lower, the intraday bearish engulfing scan is filling up quite quickly. Of note, the Regional Bank SPDR (KRE) has a bearish engulfing in play on Thursday afternoon. In fact, notice how the ETF pretty much engulfed the last 11 days of trading and broke below its mid January low. Click this chart for a live image Read More 

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Amex Airline Index Forges Quadruple Top Breakout on P&F Chart

by Arthur Hill

The Amex Airline Index ($XAL) lagged the market throughout 2011, but may be poised to lead with a breakout in 2012. The P&F chart below is a classic three box reversal chart with each box representing 50 cents. Notice that the current X-Column broke above the last three to forge a Quadruple Top Breakout with an upside price objective at 47.50. You can read more on P&F patterns and price objectives in our ChartSchool. Click this chart for a live image Read More 

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Quest Diagnostics Breaks Resistance with SCTR Surge

by Arthur Hill

A look at the StockCharts Technical Rank (SCTR) movers shows Quest Diagnostics with a big move (+37) on Tuesday. On the price chart, DGX broke ascending triangle resistance with a surge in volume today. Click this chart for a live image Read More 

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QQQ Forms Long Legged Doji

by Arthur Hill

QQQ opened flat, surged, dipped and then recovered to close basically unchanged on the day. As a result, the ETF formed a long legged doji, which shows indecision on the day. Overall, the trend remains up as the ETF holds above the December trendline. A break below this trendline would be the first sign of weakness. Read More 

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DJ Ireland Index Breaks 2011 Highs

by Arthur Hill

While the German DAX Index ($DAX) and the French CAC Index ($CAC) languish well below their 2011 highs, the DJ Ireland Index ($IEDOW) shows strength with a break above its highs. Ireland was one of the first countries to get into trouble, but it appears that the tough medicine is working as the stock market shows relative strength now. Click this chart for a live image Read More 

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Medical Devices iShares Challenges Late Summer High

by Arthur Hill

The Medical Devices iShares (IHI) has been moving higher since mid December and is now challenging its late summer high. Also notice that upside volume picked up over the last 4-5 weeks. While a breakout would be bullish, the ETF is getting overbought after a 13+ percent advance off its mid December low.  Read More 

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Semis Perk Up to Lead Technology Sector

by Arthur Hill

Stocks were largely higher on Wednesday with the technology sector leading the way. As the Sector Market Carpet shows, three of the top five performers in the technology sector come semiconductor group: Linear Tech (LLTC), Altera (ALTR) and Texas Instruments (TXN). Click this chart for a live image Read More 

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Banks and Biotechs Lead Industry Group PerfChart in 2012

by Arthur Hill

John Murphy’s industry group PerfChart shows the Banking Index ($BKX) and the Biotech Index ($BTK) leading the market higher with the biggest gains. Also note that the Gold and Silver Index ($XAU) and the Broker Dealer Index ($XBD) are strong this year. Click this chart for a live image Read More 

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Gasoline Stalls after Breakout

by Arthur Hill

Spot Unleaded Gasoline ($GASO) found support in the 2.45-2.50 area from September to December and then broke resistance with a surge the last three weeks. The breakout is holding, but $GASO stalled this week and fell rather sharply on Thursday. A move back below 2.62 would negate the breakout. Believe it or note, this breakout is positive for stocks because $GASO and the S&P 500 are positively correlated.  Click this chart for a live image Read More 

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Oil Runs into a Wall of Resistance

by Arthur Hill

The US Oil Fund (USO) started the year strong with a surge above 39, but cannot hold above this level as the ETF plunged over 1.5% on Thursday. USO was also turned back in the 39-40 area in November and December. In the indicator window, note that Spot Light Crude ($WTIC) has had trouble staying above $100 since mid November. Today’s decline in $WTIC is not yet reflected on the chart.  Click this chart for a live image Read More 

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Stocks, Oil and Gold Remain Positively Correlated

by Arthur Hill

The PerfChart below shows six intermarket related ETFs. The S&P 500 ETF (SPY), US Oil Fund (USO) and Gold SPDR (GLD) are positively correlated as all show gains in 2012. In an interesting twist, the Euro Currency Trust (FXE) and the S&P 500 ETF (SPY) are negatively correlated in 2012. SPY is up and FXE is down. Will this negative correlation last? Click this chart for a live image Read More 

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Oil Equipment and Services Stocks Moving Higher

by Arthur Hill

A look through the CandleGlance groups shows stocks in the oil equipment and services group moving higher on Tuesday. The image below shows four of the six stocks along with the DJ Oil Equipment & Services Index ($DJUSOI). Most of the stocks are up more than 2% with giant Schlumberger up over 3%. Read More 

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Urban Outfitters Advances towards Triangle Trendline

by Arthur Hill

Urban Outfitters (URBN) is showing signs of life with a move toward the upper trendline of a triangle consolidation. The stock is currently up three of the last five days, but volume is light. A breakout on surging volume would be bullish. Failure and a break below support at 27 would be bearish. Click this chart for a live image Read More 

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Dollar ETF Hits Highest Level since January 2011

by Arthur Hill

The US Dollar Fund (UUP) broke above its October high and is closing in on a 52-week high this month. With higher highs in September, December and January, the trend here is clearly up. The Commodity Index Fund ($DBC) is not happy though. Notice that this ETF peaked in May and moved lower the last 7-8 months. Click this chart for a live image Read More 

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Regions Financial Challenges Resistance on High Volume

by Arthur Hill

Regions Financial (RF), which is part of the regional banking group, is showing strength with a break above the November-December highs on surging volume. Prior to today’s breakout, the stock consolidated with a seven day pennant. Watch support in the 4-4.20 area for signs of failure. Click this chart for a live image Read More 

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A Golden Cross for the Dow Industrials

by Arthur Hill

The technical picture for Dow is improving as the 50-day simple moving average crossed above the 200-day simple moving average. Note that the 50-day SMA has not been above the 200-day SMA since August. Also notice that the senior average is trading at its highest level since late July. Click this chart for a live image Read More 

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Apollo Bucks the Market with Bearish Engulfing

by Arthur Hill

Apollo (APOL) opened strong and moved lower to trace out a bearish engulfing during the day on Tuesday. It is interesting that APOL is not moving higher with the market and that this bearish candlestick pattern formed at resistance. Follow through below Tuesday’s low would confirm the pattern. Click this chart for a live image Read More