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StockCharts Blogs - Don't Ignore This Chart! |
Cisco (CSCO) led the market higher with a big move above 24 last week. While the S&P 500 continued higher the last three days, Cisco stalled with a falling flag taking shape. Bullish flags slope down and form after a sharp advance. A break above 24 would signal a continuation of last week’s advance.
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The difference between the 10-Year Treasury Yield ($TNX) and the 3-month Treasury Yield ($IRX) widened significantly since early October. Short-term rates fell ($IRX), while long-term rates rose ($TNX). As a result, the yield curve is the steepest it’s been in months.
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The 10 most active stocks on both the NYSE and Nasdaq are all up, and up big. In the middle of the stockcharts.com home page, you can follow the most actives throughout the day. You can even view a Perfchart to compare performance or see all 10 mini-charts by clicking the candleglance link.
Broken resistance turns into support. This is a classis tenet of technical analysis. Nvidia (NVDA) broke resistance around 12-12.5 in July and returned to this breakout area in late October. Notice that I drew a zone. Support and resistance levels are rarely exact. With a gap and surge today, Nvidia is trying to break channel resistance.
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On the Stockcharts.com scan page for Wednesday evening, there were 20 CCI sell signals among NYSE stocks. A CCI sell signal occurs with a plunge below -100. Conversely, a CCI buy signal triggers with a surge above +100. CCI for Jones Apparel (JNY) surged above +100 on July 23rd and plunged below -100 on October 28th, four months later. There was a second dip below -100 on Wednesday to affirm the sell signal.
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With help from component Merck, the Healthcare SPDR (XLV) bounced off support around 28. The ETF established support here with reaction lows in early September, early October and now early November. It is safe to say that the trend is clearly up as long as this support level holds.
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After a sharp decline the prior two weeks, the Nasdaq 100 ETF (QQQQ) turned indecisive with a spinning top on Monday. This candlestick reflects a wide high-low range during the day, but little change from open to close. QQQQ surged above 41.5 in early trading, plunged below 40.8 in the early afternoon and then rebounded to close at 41.13. The day was a wash and the battle for support hangs in the balance.
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The 20+ Year Treasury ETF (TLT) bounced off support last week, but fell today as the ISM Manufacturing Survey surged to 55.7. Readings above 50 favor economic expansion. Bonds fell and the 10-Year Treasury Yield ($TNX) rose with this positive economic news. Signs of strength in the economy increase the chances that the Fed will raise interest rates in the future.
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The Gold Miners ETF (GDX) is in for a big test as broken resistance turns into support. GDX broke resistance around 41-42 with a big surge in September. This level turned into support, and held, in early October. After a sharp decline the last two weeks, GDX is once again testing this important level.
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Even if you do not trade Fidelity Funds, the Fidelity Funds Carpet can be useful for providing an overview of market action. All stock index funds, domestic equity funds and international funds are down over the last 10 days (lots of red). The only green (gains) can be found in the bond funds.
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This blog contains charts that we think are 'interesting' from a technical analysis perspective. These charts are presented for educational purposes only. We are not making any buy or sell recommendations here. Terms of Service
