Don't Ignore This Chart!

One Group and 3 Stocks Showing Relative Strength on Tuesday


Selling pressure was quite intense on Tuesday as some 497 stocks in the S&P 500 declined on the day. This means there were only three winners on the day: CableVision (CVC), American Airlines (AAL) and Sigma-Aldrich (SIAL), which is going to be acquired by Merck. Cablevision, which is the green box on the MarketCarpet image, rose on news of a "content carriage" deal. American Airlines, which has an extremely pale green box, was up after an upgrade. 

Overall, the stocks with the red boxes were down and showing weakness, while stocks with the white boxes held up better than the market and showed relative strength. Some of the white boxes have been highlighted with a blue circle. I am usually not interested in single stocks bucking the selling pressure. Instead, I am looking for strength in specific industry groups that may carry over in the coming days and weeks. And, of course, I did notice strength in one industry group within the industrials sector. 

Click this image for a live MarketCarpet

Chartists can click on one of the squares in the MarketCarpet to expand on that particular sector. The chart below shows the industrials sector and three stocks in one industry group stand out: American Airlines (AAL), Delta Airlines (DAL) and Southwest Airlines (LUV). DAL and LUV stand out because they were down less than the broader market and showed relative strength within their sector. This tells me that airline stocks were holding up relatively well and these are some charts that merit further investigation. 

Click this image for a live MarketCarpet


Thanks for tuning in and have a great day!
Arthur Hill CMT

Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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