Don't Ignore This Chart

LinkedIn Firms at Key Level as Aroon Indicators Converge

by Arthur Hill

LinkedIn (LNKD) was hit with a high volume decline on Wednesday, but managed to firm near a support zone on Thursday. Support stems from the mid August and early October lows. The indicator window shows the Aroon indicators converging below 30. This convergence suggests little directional movement over the last few weeks. The first to break above 50 will provide the next direction clue. Read More 

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S&P 500 ETF Joins a Crowded Bearish Engulfing Scan

by Arthur Hill

With a strong open and weak close, dozens of stocks and ETFs made the bearish engulfing scan on Wednesday. These patterns form when the current open is above the prior close and the current close is below the prior open. The result is a black candlestick that engulfs the body of the first. These are short-term bearish candlestick patterns that require confirmation with further weakness. On the SPY chart, I would mark first support near broken resistance in the 172-173 area. *LINEBR** Read More 

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Sector Rotation: The "Offense" Takes the Field

by Chip Anderson

We're finally back to seeing an "orderly" sector rotation situation on the 3-month S&P Sector PerfChart: The "offensive sectors" on the left of the chart are all positive while the "defensive sectors" are all now below zero.  Comparing this to the Sector Rotation Model (located at the bottom of the PerfChart page) shows that, if this pattern holds, this configuration is bullish for the market. To recreate this chart, follow these steps: Click on the "S&P Sector PerfChart" link located in the middle of our homepage. Read More 

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BroadCom Rallies Back to Fill the Gap

by Arthur Hill

BroadCom (BRCM) gapped down after an earnings miss and opened near 25 last week. The stock hit its low in the first 30 minutes with a spike in volume (6 million). The stock subsequently rallied and ended the day with over 30 million shares. Moreover, the stock continued higher the last two days and filled the gap. Read More 

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Hershey and Avon Lead Consumer Staples SPDR to New High

by Arthur Hill

The Consumer Staples SPDR (XLP) surged above its May-September highs and recorded a 52-week high with a big move over the last three weeks. A look at the Sector Market Carpet shows Hershey (HSY), Avon (AVP) and Coca-Cola (KO) leading with 2+ percent gains on Monday. HSY also recorded a new high today. *LINEBR** Read More 

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Oracle Forms a Bearish Pattern and Shows Relative Weakness

by Arthur Hill

Oracle (ORCL) held its own from July to September, but weakened in October and showed relative weakness. The indicator window shows the price relative turning down and breaking below the August-September lows. On the price chart, ORCL fell to 32 and then formed a rising wedge the last few weeks. This is a bearish pattern and a break below 32.5 would signal a continuation lower. Read More 

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Gold Miners BPI Forms Bullish Divergence as GDX Bounces

by Arthur Hill

The Gold Miners ETF (GDX) got a nice bounce the last seven days with a break above the late August trend line. Even though the big trend remains down, the short-term trend is now up with this small breakout. Longer-term, a potential double bottom is taking shape with the August highs marking key resistance. The indicator window shows the Gold Miners Bullish Percent Index ($BPGDM) holding above its prior low and forming a bullish divergence. Read More 

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Martin Pring: End of the Movie for Netflix?

by Chip Anderson

Our good friend Martin Pring has contributed today's episode of "Don't Ignore This Chart!"  In case you aren't familiar with his work, Martin has authored over 15 books on the subject of Technical Analysis including the classic "Technical Analysis Explained."  When he is not making presentations throughout the world, he is updating his website, Pring.com.  Thanks, Martin!  - Chip End of the Movie for NetFlix? Netflix has been getting the headlines recently thanks to a 12-month run up from less than $60 to a recent intraday high close to $400 Read More 

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Alcoa Breaks Out of Massive Base Formation

by Arthur Hill

Alcoa moved below 9 in mid 2012 and proceeded to form a long base over the last 15 months. This base gave way to a reversal with a surge above 9 and a 52-week high (intraday). Also notice that the surge started with strong volume. This week's volume is incomplete, but will be above average because the stock traded over 75 million shares on Tuesday.     Read More 

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DITC Biotech SPDR Confirms Bearish Engulfing Pattern

by Arthur Hill

A short-term breakdown is in the works for the Biotech SPDR. The ETF returned to broken support and this zone turned into resistance as a bearish engulfing formed on Friday. The ETF followed up this reversal pattern with a trend line break on high volume. This break signals a continuation of the early October plunge and targets a move to next support in the 112.5-115 area. *LINEBR** Read More 

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Consumer Discretionary and Tech Lag on Equal Weight PerfChart

by Arthur Hill

The S&P Equal Weight ETF (RSP) is up some 1.81% over the past month, but the Equal-weight Consumer Discretionary ETF (RCD) and Equal-weight Technology ETF (RYT) are up much less. These two "offensive sectors" are underperforming the broader market. In contrast, the Equal-weight Utilities ETF (RYU) and Equal-weight Healthcare ETF (RYH) are outperforming. Read More 

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IBM Weighs on Dow, Tech Sector and Computer Services Group

by Arthur Hill

IBM, also known as big blue, is weighing on the market with a gap down and 52-week low. This is not the first sign of weakness though. Notice that the stock peaked way back in March and its 50-day crossed below its 200-day in early August. The price relative (IBM:SPY) ratio also hit a new low. Read More 

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Finance SPDR Leads Market Higher as Price Relative Turns Up

by Arthur Hill

The Finance SPDR (XLF) led the market higher with a 1.83% surge on Wednesday. With this move, XLF is challenging triangle resistance and the September high. A breakout would signal a continuation of the bigger uptrend and argue for new highs. The indicator window shows the price relative (XLF:SPY ratio) turning up and breaking its September high. *LINEBR** Read More 

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Nasdaq 100 High-Low Percent Surges as New Highs Expand

by Arthur Hill

Despite a few negative dips, Nasdaq 100 High-Low Percent ($NDXHLP) has been mostly positive throughout 2013. The red arrows show the brief, and shallow, dips into positive territory. Last week's dip did not last long as High-Low Percent surged to 15% this week. A downtrend is pretty much impossible until Net New Highs exceed -5%. Note that StockCharts calculates High-Low Percent for several indices and the nine sector SPDRs. Read More 

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SCTR Surges above 50 for Vulcan Materials

by Arthur Hill

The StockCharts Technical Rank (SCTR) for Vulcan Materials surged above 50 to record the second biggest SCTR gain among S&P 500 stocks. On the price chart, the stock broke resistance with the Septmeber surge and broken resistance turned support as a bull flag formed. A break above flag resistance would signal a continuation higher. Read More 

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Finance Sector Lights Up Market Carpet with Green

by Arthur Hill

The finance sector is leading Thursday's market rebound with all stocks in the sector showing gains in early trading. The image below shows the market carpet for the finance sector and all components are green today. The top five are up over 3% and even the bottom five are showing gains thus far. *LINEBR** Read More 

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High Flyers Fall Hard as Traders Shun Risk

by Arthur Hill

After recording new highs just a few weeks ago, the darlings of the stock market were hit hard as traders sold risk and sought relative safety. LinkedIn (LKND), Tesla (TSLA), Yelp (YELP) and RackSpace (RAX) fell more than 9% in the last five days. All eight stocks in the PerfChart below are also trading below their 20-day moving averages. Read More 

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Utilities SPDR Battles Key Moving Average

by Arthur Hill

The Utilities SPDR (XLU) is battling the rising 200-day moving average for the third time in five months. Since surging above 38 in mid September, the ETF pulled back with a falling wedge. Buyers stepped in near the 200-day as the ETF moved above the wedge trend line early Tuesday. Let’s see if MACD can confirm with a signal line crossover.  Read More 

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S&P 500 Volatility Index Surges above August High

by Arthur Hill

The volatility premium rose sharply as the VIX surged 50% and hit a three month high. The chart below shows the VIX rising from the 13 area to 19.41 in less than three weeks. While the VIX exceeded its August high, the S&P 500 has yet to break its corresponding low and has yet to price in as much fear. *LINEBR** Read More 

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Elder Impulse Bar Turns Green for the Networking iShares

by Arthur Hill

The Networking iShares (IGN) declined sharply in late September, but managed to hold above its prior low and keep the rising channel in place. With a big surge on Friday, the Elder Impulse bar turned green to signal an upturn in momentum. Also notice that the StockCharts Technical Rank (SCTR) is going for a range breakout. *LINEBR** Read More 

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Banks Underperform on Industry Group PerfChart

by Arthur Hill

The PerfChart below shows the performance for John Murphy's key industry groups over the past month. Eight of the nine are up, but the Banking Index ($BKX) is up the least and seriously underperforming. The Gold & Silver Index ($XAU) is down sharply. Click this image for a live table. Read More 

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Chuy’s Makes the MACD Scan with a Bullish Cross

by Arthur Hill

Chuy’s Holdings (CHUY) is showing some promise with a bounce off support and bullish MACD cross. Notice that broken resistance turned into support in the 34 area and held from June to September. With the move above 37 this week, MACD moved above its signal line and momentum is turning up. Read More 

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Marking Momentum Support for the Russell 2000 ETF

by Arthur Hill

The Russell 2000 ETF (IWM) surged to a new high with two long white candlesticks. Notice how the ETF opened weak on Monday and then moved higher and exceeded the September high. Also notice how StochRSI held support at .50 and moved back above .80 today. Chartists can now mark momentum support at .50 on the chart. Read More