Don't Ignore This Chart

February 2013

Don't Ignore This Chart

Sears Holdings Traces out Huge Outside Reversal Day

by Arthur Hill

Sears Holdings (SHLD) started the day strong, but sold off hard to form an outside reversal day. In fact, today’s price action encompassed the high-low range of the last five days. This reversal also occurred on high volume to further reinforce resistance at 49. *LINEBR** Read More 

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Lockheed Martin Crosses the Bullish CCI Scan

by Arthur Hill

Big defense contractors got slammed in late January as the market priced in a worst-case sequester scenario in about seven trading days. LMT firmed after this sharp decline and then surged with a long hollow candlestick on Wednesday. This move was strong enough to push CCI above 100 and trigger a bullish signal on our predefined scans page. Read More 

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Natural Gas Surges off Key Retracement

by Arthur Hill

Don’t look now, but Natural Gas ($NATGAS) held support near the 62% retracement and broken resistance near 3.10 this year. $NATGAS bounced twice off this level with the second surge sending it above 3.40 this week. The US Natural Gas Fund (UNG) also held support from the January low and bounced. Read More 

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February has been Rough for the Consumer Discretionary SPDR

by Arthur Hill

After big gains in January, the market is having a tough time in February with relative weakness coming from the Consumer Discretionary SPDR (XLY) and Technology SPDR (XLK). Also notice that the defensive sectors are starting to outperforming (XLP, XLU and XLV). Read More 

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RSI Hits Support Zone for the Biotech SPDR

by Arthur Hill

XBI surged the first two weeks of January, and then corrected the next six weeks with a falling channel. The fall is ever so slight though. A move above 96.5 would break the channel trend line and signal a continuation of the bigger uptrend. The indicator window shows RSI hitting the 40-50 zone this week. A move above 60 would reverse the downtrend in RSI. *LINEBR** Read More 

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Intel and Facebook Breakdown, but Blackberry Firms at Trend Line

by Arthur Hill

You can see a lot with CandleGlance charts. The 6 charts below come from the Nasdaq most active list today. Intel broke support with a sharp decline the last two days and Facebook broke down in early February. Blackberry is findng a bid as it firms near the three week trend line and last week's low.  Click this image for live charts. Read More 

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MarketVectors Oil Services ETF Stalls with Three Inside Days

by Arthur Hill

OIH surged to a new high with a long white candlestick last week, but suddenly stalled as the next three candlesticks formed inside this long candlestick.  This is basically an extended harami pattern, which is potentially bearish. Also notice that OIH is up over 20% since mid November and a retracement (correction) could be in order. Read More 

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Retail SPDR Leads with a 52-week High

by Arthur Hill

The stock market may be overbought and sentiment may seem overly bullish, but buying pressure continues to outpace selling pressure. Case-in-point: the Retail SPDR (XRT) surged to a fresh 52-week high on Tuesday and the price relative (XRT:SPY ratio) is challenging its November high. Strength in retailers is a positive sign for the economy and the market. *LINEBR** Read More 

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The Large Cap Rally is Impressive but...

by Chip Anderson

If you aren't watching the small and mid-caps, you are missing out.  To wit: (Click here for a live version of this chart.) Everyone is talking about the big rise in the S&P however, since a significant trough last November, the Small Caps have outperformed everything with the Mid-Caps not far behind. - Chip Read More 

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Targeting the Lower Channel Trend Line for the Silver Trust

by Arthur Hill

Gold, oil and silver fell sharply on Friday as the G20 meeting started in Moscow. The chart below shows the Silver Trust (SLV) forming a lower high in late January and plunging to the early January low. The lower trend line of the falling channel marks the next support level in the 27.50 area. Also notice that the Percent Price Oscillator (PPO) turned down again and moved deeper into negative territory. *LINEBR** Read More 

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Oil & Gas Equipment/Services SPDR Surges to 52-week High

by Arthur Hill

Oil related stocks remain red hot as the Oil & Gas Equipment/Services SPDR (XES) surged over 2% on Thursday and exceeded its 2012 high. The uptrend just gets steeper as the advance accelerated the last five weeks. XES is overbought like the rest of the market, but showing no signs of weakness as it outperforms oil. *LINEBR** Read More 

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Cheesecake Factory Forms Lower High on Big Volume

by Arthur Hill

Even though exchange volume remains relatively light, Cheesecake Factory (CAKE) is trading above average volume and falling sharply. Notice that CAKE formed a lower high in early February and the next support zone resides in the 32.25-32.5 area. Read More 

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Utilities SPDR Quietly Challenges October High

by Arthur Hill

The Utilities SPDR (XLU) bottomed along with the broader market in mid November and advanced the last three months, but the advance has lagged in more ways than one. XLU is up less than SPY and SPY is already above its October high. Nevertheless, XLU is in a clear uptrend and poised to break the October high. The Aroon oscillator turned bullish back in mid December and remains strong. *LINEBR** Read More 

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Bearish Candlestick Reversal Patterns Increase on Predefined Scans Page

by Arthur Hill

There was an uptick in the number of bearish candlestick reversals on Monday afternoon. As the screen shot below shows, there were 67 bearish engulfing patterns as of 1:51PM ET.  There were also 13 dark cloud patterns and over 100 harami, which are like inside days. Chartists can click on the number to see a list of stocks with these patterns.        Click this image for a live table.       Read More 

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Watch the Rising Trend Line on the NYSE McClellan Summation Index

by Arthur Hill

The NYSE Summation Index ($NYSI) has been rising since the latter part of November and recently exceeded its September high. The trend here is clearly up with the November trend line marking first support. Even though the summation index flattened over the past week, it has yet to break this trend line and reverse the medium-term uptrend. You can read more on the McClellan Summation Index in our ChartSchool. *LINEBR** Read More 

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Technical Alerts from StockCharts Remain Positive in February

by Arthur Hill

The predefined technical alerts at StockCharts.com have been decidedly positive since January 2nd. You can view the history on the summary page. February continues to be a good month with eleven positive alerts and zero negative alerts. These realtime alerts are color coded for an easy assessment. You can follow us on twitter as well (stockchartscom).    Click this image for a live page. Read More 

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Intel Traces out Bear Flag after Gap

by Arthur Hill

Intel (INTC) recorded a 52-week low in mid November and bounced with the rest of the market over the next two months. This bounce abruptly ended with a gap down to the mid November trend line. With a feeble rise the last few weeks, Intel formed a bear flag and a break below flag support would signal a continuation lower. Notice that Aroon already crossed bearish and this could foreshadow a test of the mid November low. *LINEBR** Read More 

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Nasdaq Parties Like its 1999 - MSFT, DELL, INTC and CSCO Lead

by Arthur Hill

A look at the ten most active stocks shows four old school tech stocks leading the charge. Microsoft, Dell, Intel and Cisco are all up and active. This table comes from the FreeCharts page. Chartists can see small candlestick charts for all ten by clicking the CandleGlance link or a performance chart by clicking the PerfChart link. Read More 

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Dollar and Gold Surge along with Treasuries

by Arthur Hill

Some fears in Spain and Italy triggered a move away from risk as the US Dollar Fund (UUP) and the 20+ Year T-Bond ETF (TLT) surged on Monday. Even though the Dollar is up sharply, also note that the Gold SPDR (GLD) is up and gold is attracting money. Read More 

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This is What Risk-On Looks Like

by Arthur Hill

The markets are clearly in the mood to embrace risk. The S&P 500 and Spot Light Crude ($WTIC) are up over 10% since mid November, and the Euro Index ($XEU) is up over 6%. In contrast, the 30-Year US Treasury ($USB) and the US Dollar Index ($USD) are down. Spot Gold ($GOLD) is the odd asset because it is down along with the Dollar. Click this image for a live table Read More