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Art's Charts |
-Breadth chart page updated
-Short-Term SPY analysis in separate post below
-Medium-term evidence remains bullish, but....
-Wave 4 stalls for the S&P 500
-Nasdaq hits wave 4 resistance
-IWM breaks October low
-SPY holds above October low
-OBV shows increase in downside volume
-Nasdaq AD Line breaks support
-Small-caps lead the way lower
-Click here for video page.
The breadth chart page has been updated. There have been some changes with the sharp decline over the last two weeks. Highlights include:
-The Nasdaq AD Line broke below its early October low.
-Daily Net New Highs for the Nasdaq turned negative.
-The Nasdaq McClellan Oscillator plunged to its lowest level since March
-The NYSE AD Volume Line broke below its early October low
-The NYSE McClellan Oscillator plunged to its lowest level since March
-Click here to see all the charts.
After a 5% decline from the October high, the S&P 500 ETF (SPY) surged back above 106 on Thursday. Is this just a dead-cat bounce or should we expect more strength? Technically, the medium-term trend is still up. As such, a number of mean-reversion strategies turned bullish after Wednesday’s close.
I was quite impressed with the ability of the Regional Bank SPDR (KRE) to firm over the last few days. The S&P 500 is down around 4.5% in four days and KRE is down only 2.3%. The first chart shows KRE and the S&P 500 over the last five days. Notice how the S&P 500 moved straight down (black). KRE also moved lower on Friday, but firmed on Monday and held above Monday’s lows over the last two days. This shows relative strength.
The S&P 500 ETF (SPY) is now down over 5% in the last seven days. With the medium-term trend still technically up and the ETF oversold, traders should be on guard for a bounce or consolidation. Bouncing usually begin with indecision.
Should the S&P 500 ETF (SPY) continue weak and close lower again today, it would mark the sixth lower close in the last eight days. Late September-early October was the last such occasion. With the ETF down around 4% from its highs, it is already getting short-term oversold. However....
The image below shows the email alert for, Tuesday, October 27th. Each email contains the titles and the opening sentences for the day's blog entries. Alerts are sent out once per day around 12PM ET. You can sign up for alerts with the "SUBSCRIBE BY EMAIL" link in the upper right corner of this blog.
-Intermarket chart page updated (here)
-Short-Term SPY analysis in separate post below
-Small-caps show relative weakness
-Regional Banks hold support
-Healthcare Providers ETF breaks support
-Cigna shows relative weakness
-Semiconductors HOLDRS pullback after higher high
-Intel turns indecisive at key retracement
-Texas Instruments forms triangle consolidation
-Click here for the video page.
Continue reading "IWM Lags-SMH retraces-KRE Holds Support" »
After a big surge in July, the S&P 500 ETF (SPY) has been zigzagging higher since early August. Consider the zigs as advances and the zags as declines. Each advance (zag) forges a higher high, while each decline (zig) reverses above its prior low. This series of higher highs and higher lows means a medium-term uptrend is in place.
Intermarket chart highlights include:
-Bonds plunge as Dollar bounces
-Dollar breaks short-term resistance as RSI approaches 50
-Gold breaks pennant/triangle support
-Oil declines as Dollar bounces
-Bonds test important support zone
Click here for the intermarket chart page.
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