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This Stock Awaiting Breakout In The Bullish Medical Supplies Group

by Tom Bowley

Earlier today, IDEXX Laboratories (IDXX) fell beneath its rising 20 day EMA but quickly recovered and is now on the verge of breaking above a quadruple top in the 79-80 range.  Volume isn't huge, but it is increasing so a breakout should be respected.  We've seen hesitation in this range in August and September of 2015 and two more times in March.  Perhaps the second quarter of this year will be the lucky charm.  Here's the visual: One bullish feature is that IDXX is part of the medical supplies industry group and you can see from above that the DJUSMS has been a Read More 

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Negative Divergence Could Slow This Trucker

by Tom Bowley

The rally in the S&P 500 has been impressive and truckers ($DJUSTK) have been among the best performing industry groups, rising 17% over the past three months.  That actually places truckers as the leading industry group within the industrials over that time frame.   C. H. Robinson Worldwide (CHRW) has gained more than 20% over the past three months, but slowing volume and a negative divergence on its MACD suggests the majority of the rally may be in the rear view mirror.  Take a look at the chart: The CandleVolume chart type shows wider candlesticks when Read More 

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Investing In A RollerCoaster Rather Than Riding One (SIX)

by Greg Schnell

While the process of investing is commonly associated with a rollercoaster ride, the Six Flags Entertainment Corp.  (SIX) continues a smooth and steady climb from bottom left to top right.  After pulling back from the highs in December, the stock is breaking out once again. The strong SCTR, the nice uptrend, and great weekly momentum on the MACD all look good. Last week's terribly low volume is a little concerning, but looking at the chart suggests this stock could run well into the summer like it has done the last 3 years. Good trading, Greg Read More 

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Getting in (f)LOW(serve)

by Julius de Kempenaer

FLS is a stock that has been pretty much off the radar for two years as a potential long candidate, but this looks to be changing now! After breaking out of an almost perfect symmetrical triangle in 2014, FLS trended lower until the beginning of this year, when a low ($33.72) formed in the support area offered by the high-low rotation in 2012. Before the break above the falling resistance line, divergence started to show up in both the MACD and the RSI which often is a prelude to a move higher or, at least, a pause in the existing trend. Last week the stock Read More 

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Here's What A Warning Sign Looks Like

by Tom Bowley

From a short- to intermediate-term trading perspective, slowing momentum to the upside is a warning sign if you're long.  Slowing momentum can come in different forms, but I consider negative divergences on the MACD and weak volume on price breakouts to be two solid examples.  Based on these two criteria, Black Hills Corp (BKH) is a stock to be concerned about if you own it.  To illustrate, here's the chart: The higher price with the lower MACD reading is a negative divergence and an indication of slowing momentum.  Note also that I've marked the lighter volume on the Read More 

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A Breakout In A World Of Drought (XYL)

by Greg Schnell

Xylem (XYL) is a provider of water solutions. The chart has been resisting breaking out through the $39.00 for some time. This week, the price action held above the previous high ($38.93) and went on to close at the highs. This nice little test of the previous high and then a push to new highs is a bullish signal.  The SCTR ranking is nice and strong at 90.0.  The SCTR has been very positive for this quarter. This is also the strongest SCTR ranking in almost 2 years. Price is working higher for 9 weeks, so it might need a rest but this needs to be on our radar. As long as XYL Read More 

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Priceline's (PCLN) Continuation Pattern Is Bullish

by Tom Bowley

Priceline (PCLN) has seen lots of volatility over the past several months including sizable gaps higher and lower, but the technical picture remains bright.  The near-term has turned dicey as a negative divergence has emerged, but that slowing momentum could be exactly what this bullish inverse head & shoulders pattern requires.  At its most recent high, PCLN barely cleared the mid-December high, providing a bit of an upsloping neckline.  Also, bullish momentum appeared to be slowing as the MACD printed lower highs while price set higher highs.  It's not Read More 

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Solar ETF Reverses near Key Level as Momentum Turns

by Arthur Hill

The Solar Energy ETF (TAN) has been one of the weakest industry group ETFs over the past year and that looks set to continue with the recent breakdown. The chart shows TAN bouncing with the market from mid February to mid March and hitting resistance near broken support. This is a classic tenet of technical analysis: broken support turns into resistance (and vice versa). The ETF challenged resistance twice in March and then broke support with a sharp decline the last two days.  The indicator windows shows momentum turning down and the ETF Read More 

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International Small Caps (GWX) Move Above Resistance

by Greg Schnell

While the world tries to solve the riddle of global demand, the Internation Small Cap ETF (GWX) moved above resistance last week and needs to hold $28 to remain bullish. The chart shows some nice trends. The SCTR is trying to push above 75. The Relative Strength shown in purple has moved to 5-month highs. I think the most important information on this chart is the support/resistance line at $28. Going all the way back to 2013, this line has marked an important level. The recent highs in Q4 2015 were trying to stay above $28 and as this support level eroded, the small caps stalled. After Read More 

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Under Armour Traces out Bullish Continuation Pattern

by Arthur Hill

UA is attracting buying interest as March madness moves to the sweet sixteen. Note that UA sponsored 10 teams at the start of the tournament, including Utah and Notre Dame. On the price chart, the stock has a bullish cup-with-handle pattern taking shape. This is a continuation pattern and a breakout would signal a continuation of the late January surge.  Typically, the height of the pattern is added to the breakout for an upside target. The height measures around 15 (85 - 70 = 15) and the upside target would be around 100. Take upside targets with a bucket of salt. :<) Read More 

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Charter Communications (CHTR) Makes The Breakout

by Tom Bowley

Despite all the market volatility and weakness over the past year, CHTR has held steady in its uptrend and has been consolidating throughout.  It was awaiting a heavy volume breakout, but it's waiting no more.  More than 15 million shares changed hands last week as CHTR closed above 200 for the first time ever.  Price labels are included on the chart below to highlight the major highs in 2015.  The weekly MACD has just made a bullish centerline crossover and shows accelerating price momentum to accompany the heavy volume.  Here's the chart: Happy trading! Read More 

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Weyerhaeuser (WY) Starts Cutting Against The Grain

by Greg Schnell

Weyerhaeuser (WY) has recently surged off the lows. This chart is interesting as the board price for lumber recently surged above a trend line by 10% in 3 days! The chart shows that this was the fastest advance in the last year and looks set to saw through the trend line.  There are a few things on this chart that I like in the indicator set. First of all, the SCTR tested 75 back in November and couldn't hold up. After dropping back down, it has surged back up to the previous level. If it can hold up here, this could be an exciting breakout on the price. Some of the strongest SCTR Read More 

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Has Big Blue (IBM) Bottomed?

by Tom Bowley

IBM had been under intense selling pressure and had lost more than 40% of its market cap from its March 2013 high to its early 2016 double bottom low near 117.00.  Was that enough?  Has it bottomed?  Well, there was an exhaustion gap in mid-January followed by a double bottom and island cluster reversal in February.  The ensuing rally has sent IBM up to test a key gap resistance level as its momentum oscillators have reached very overbought levels.  Check it out: The lighter volume to test gap resistance has resulted in thinner candles as Read More 

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S&P 500 Seasonal Patterns Remain Bullish

by Arthur Hill

The chart below shows the seasonal patterns for the S&P 500 over the last twenty years. The bars show the percent of months that the S&P 500 closed positive and the numbers at the bottom show the average change. Three months stand out from the rest: April, November and December. Notice that the S&P 500 was up 74% of the time each of these three months. Also notice that March is the fifth strongest month. The S&P 500 is up just over 4% so far this month and living up to its bullish bias.  April has an even stronger bullish bias with an average gain of 2.1%. Thus, the Read More 

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Can The Transport ETF (IYT) Drive Through Resistance?

by Greg Schnell

The Transport ETF (IYT) has been a great ETF for a technical analysis example. So far, it is carrying the typical information we would expect from a transportation ETF. This basic knowledge principle goes back to Charles Dow, the Father of the Dow Jones Industrial Average. When transports are moving higher, you are in a bull market. Looking at the period from 2012 to late 2014, transports were outperforming the $SPX and the SCTR was pinned above the 75 level for almost 2 years. When an ETF or stock stays above 75, this indicates a leadership group where the price action is behaving Read More 

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Technology SPDR Becomes a Leader

by Arthur Hill

Chartists can measure relative performance by comparing the price to a moving average. In particular, I am going to measure the percentage above or below the 200-day EMA using the Percentage Price Oscillator (PPO). The PPO (1,200,1) measures the percentage difference between the 200-day EMA and the current price. The PPO is positive when price is above the 200-day EMA and negative when price is below.  The chart below shows the Technology SPDR (XLK) with the 200-day EMA and the PPO (1,200,1).  Notice that XLK is around 3.7% above the 200-day EMA and the PPO is at 3.718% Read More 

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This Indicator Says Whole Foods (WFM) Is Under Accumulation

by Tom Bowley

Whole Foods Market (WFM) has been trading in sideways fashion for the past several months and its long-term weekly chart isn't one of the strongest.  But there are signs that better fundamental days lie ahead based on technical signs of accumulation.  Below is a daily chart of the WFM for the past 8 months: Notice that while prices moved lower in February, the Accumulation Distribution Line (ADL) was well off its low.  The blue arrows mark many heavy volume days and if you look at the accompanying daily candlestick, you'll see that most of those high volume days saw Read More 

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Coca Cola Fizzes To New Highs (KO)

by Greg Schnell

The new-highs list is littered with Consumer Staples and Utilities Companies. This week, Coca-Cola (KO) popped to new highs and the chart looks great. The SCTR is nice and high. The breakout looks like a textbook breakout. Even without Friday's action, the volume is already above average. The MACD looks set to break out to new 2 year highs and the trend is up. While the overall market seems to be in disarray with typically strong stocks having trouble making new highs, these defensive sectors are making a big push. Below is a list of stocks making Read More 

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NASDAQ 100 Faces Major Support Test This Afternoon

by Tom Bowley

The European Central Bank (ECB) announced its latest quantitative easing measures and though they initially moved global markets higher, the focus now seems to have turned to ECB President Draghi's comment that further interest rate cuts aren't likely.  There is weakness across the board in the U.S. after a 30 minute boost propped up prices after today's opening bell.  It's been a steady decline since, however, and the NASDAQ 100 ($NDX) is currently facing a stiff moving average test at the rising 20 day EMA.  The NDX hasn't closed beneath that moving average at Read More 

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Consumer Staples and Utilities Pop Up on Technical Alerts Page

by Arthur Hill

Two of the nine sector SPDRs hit new 52-week highs today (March 9th) - and I bet you can figure out which ones. The image below comes from the pre-defined technical alerts page. Notice that we had three bullish alerts (green) and three bearish (red). The Consumer Staples SPDR (XLP) and the Utilities SPDR (XLU) hit new highs, and the Dow Industrials crossed 17000. XLP and XLU clearly show the most "chart" strength of the nine sectors SPDRs because they are the only ones at 52-week highs. On the downside, the Euro crossed below 110, the Nasdaq crossed below 4700 and the Consumer Read More 

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Utilities Continue To Power Higher During This Rally (PEG)

by Greg Schnell

The ChartWatchers newsletter on the weekend had varying opinions on this rally starting a new bull market trend. With the wide range of perspectives on the market, it is always interesting to read how our market writers are analyzing the market. Today is one of the first weak days in this rally. Is this an end to the trend? There still appears to be safety in the Utilities, Telecommunications and Consumer Staples. In a defensive environment (downsloping 200 DMAon $SPX), these stocks are still striking new highs. Public Service Enterprise (PEG) is a good example. The SCTR stayed nice and Read More 

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Alphabet Fails at Key Moving Average and Underperforms

by Arthur Hill

Alphabet (GOOGL) is weighing on the Nasdaq 100 ETF as it fails at the 50-day simple moving average and the price relative breaks down. The six month candlestick chart shows GOOGL surging to 800 after earnings and then immediately falling back below 700 in early February. The stock market got a strong bounce the next few weeks, but Alphabet's bounce was rather feeble as the stock barely made it back above its 50-day SMA. A rising wedge formed during this bounce and GOOLG broke wedge support with a sharp downturn the last four days. The stock has failed at the 50-day and the wedge break Read More 

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This Industry Group Has Broken To An All-Time High

by Tom Bowley

2016 has not been a very good year, although the rally the past few weeks has alleviated some of the earlier pain.  I guess we should party like it's 1999.99 because that's where the S&P 500 closed on Friday.  Couldn't we just get one one hundredth of a point at the close to make it an even 2000?  Nope.  The S&P 500 is roughly 6% off its all-time high, but the Dow Jones U.S. Medical Supplies index ($DJUSMS) has broken into all-time high territory, and it's done it with heavy, confirming volume.  Take a look: Prior to the market's August flash Read More 

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Is Market Sizzle About To Fizzle? ($SPX)

by Greg Schnell

Well, it's another one of those rallies to remember. Is it a return to a new bull market? Some writers have suggested not hitting new highs for 10 months is still a bull market. I would like to use technicals to describe my version of the bull and the bear. Here is a monthly chart of the $SPX going back 25 years.  Let's look at a few indicators again. The RSI, Bollinger Bands, Moving Averages and the PPO. The RSI is the Relative Strength Indicator.  As long as you are above 50, it is a bull market. When it dips below, you are in a bear market. The data point is based on a Read More 

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Home Construction And Bank Stocks Awaiting HUGE Jobs Report

by Tom Bowley

Tomorrow's nonfarm payrolls report is a really, really big deal.  Maybe not so much from a fundamental perspective, but it certainly is from a technical perspective.  Over the past few months, we've seen heavy volume selling and a rotation toward defensive areas of the market like few periods I can recall.  That's the stock market's way of speaking and saying that the economic outlook ahead is cloudy at best.  Since February 11th, though, we've seen a significant recovery in our major indices and we've gravitated to very critical price resistance levels - just as Read More 

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The Squeeze Play is on for Finish Line

by Arthur Hill

2015 was a rough year for Finish Line and the Retail SPDR (XRT) as both fell rather sharply. FINL was down over 20% and XRT fell over 8%. 2016 is shaping up a bit different because FINL is up around 2% year-to-date and XRT turned positive on Tuesday. Furthermore, FINL sports a bullish pattern with signs of accumulation.  On the price chart, the blue trend lines mark an ascending triangle. This is normally a bullish continuation pattern that forms after an advance, but I think the properties of the pattern are bullish wherever it forms. The higher lows show buying pressure coming in Read More