ChartWatchers

May 2012

ChartWatchers

FOREIGN HEAD AND SHOULDER TOPS?

by John Murphy

What really worries me about the direction of stocks is the possibility that foreign stock indexes could be tracing out two-year "head and shoulder" tops. That's true of both developed and emerging markets. Chart 1 shows EAFE iShares tracing out a textbook "H&S" top... Read More 

ChartWatchers

TREMENDOUS AMOUNT OF RISK IN $INDU

by Richard Rhodes

An important tops looks to be in place in the Dow Industrials ($INDU) by month's end if the current pattern holds true to form. Quite simply, the $INDU is forming a bearish wedge pattern, of which rising trendline support looks to be violated in the months ahead... Read More 

ChartWatchers

MOMENTUM IS CREATING OPPORTUNITIES - ON THE BEARISH SIDE

by Tom Bowley

The long-term negative divergences that printed in February and March provided us clues that we'd at least see some near-term trepidation and possibly something much worse. Well, the "much worse" has arrived... Read More 

ChartWatchers

BULLISH PERCENT INDEX LED MARKETS LOWER

by Chip Anderson

Hello Fellow ChartWatchers! Did you follow the Facebook mania yesterday? Even if you didn't have a stake in the stock, it was still fascinating to watch the chart over the course of the day as the underwriters had to step in to prop it up... Read More 

ChartWatchers

DOW THEORY SELL SIGNAL NOW IN FORCE

by Arthur Hill

With big declines this past week, the Dow Industrials and Dow Transports both broke support levels and forged lower lows. Confirmed lower lows amount to a Dow Theory sell signal... Read More 

ChartWatchers

CORRECTION LOW MAY BE WEEKS AWAY

by Carl Swenlin

The current correction is creating very oversold conditions on intermediate-term indicators, like the ITBM (breadth) and ITVM (volume)... Read More 

ChartWatchers

GIVING ANY INDICATOR A SIGNAL LINE

by Chip Anderson

Hello Fellow ChartWatchers! One of the big benefits of becoming a StockCharts member is the ability to access additional charting options... Read More 

ChartWatchers

STOCKS INDEXES WEAKEN ON RISING VOLUME

by John Murphy

It looks like traders and investors took the "sell in May" mantra seriously this week. Stocks fell sharply after Friday morning's weak April jobs report was released. The worst performance came in the Power Shares QQQ Trust which led the rest of the market lower... Read More 

ChartWatchers

TIME TO CHERRY PICK

by Tom Bowley

Everything seemed perfectly aligned for the bulls... Read More 

ChartWatchers

Industrials SPDR Traces Out Head-and-Shoulders Reversal

by Arthur Hill

With a gap down and sharp decline, the Industrials SPDR (XLI) formed a lower high and broke wedge support. But that's not all. The chart below also shows a potential head-and-shoulders pattern taking shape... Read More 

ChartWatchers

SIX-MONTH SEASONALITY TURNS UNFAVORABLE

by Carl Swenlin

May 1 marked the beginning of a 6-month period of unfavorable seasonality. Research published by Yale Hirsch in the Trader's Almanac shows that the market year is broken into two six-month seasonality periods... Read More