StockCharts Blogs - Don't Ignore This Chart!

Euro Approaches Resistance Zone

The Euro ETF (FXE) has been red hot with a move from around 125 in early March to 141 in late May. Interestingly, the rise in the Euro coincides with a rise in stock over this same period. FXE is fast approaching a resistance zone around 142.5-145. This zone stems from broken support and the December 2008 high.

Natural Gas Surges

While the US Oil Fund ETF (USO) bottomed in February, the US Natural Gas Fund ETF (UNG) continued lower and recorded a new low in late April. There was a big surge in early May and then a deep pullback the last two weeks. Notice that this pullback ended abruptly as UNG held above its April low and surged over 8% today.

Asia Leads The Way

While the western stock markets have clawed their way back towards positive territory the last few months, the Hang Seng ($HIS) turned year-to-date positive in early April and now sports a 24.31% gain. Among the six world indices shown, the Nikkei 225 is a distant second with a 6.54% gain year-to-date and the S&P 500 is down for the year.

Naz Battles the 200-day

The Nasdaq extended its battle with the 200-day moving average by jumping back above with a big advance on Tuesday. With this latest move, the index has now crossed the 200-day at least five times this month. Notice that today's surge occurred on the second lowest volume of the month.

QQQQ Retraces 38.2%

With the March-May advance, QQQQ has now retraced 38.2% of the May-November decline. Where does this number come from? It based on the Golden Ratio Congugate (.618). 1 - .618 = .382 or 38.2%. After a decline, like May to November, the Fibonacci Retracements Tool can be used to measure percentage retracements.

AD Volume Line Breaks Trendline

The AD Volume Line for the Nasdaq broke its March trendline and formed a lower high in May. This indicator is a cumulative measure for the volume of advancing stocks less the volume of declining stocks. Notice that recent peaks and troughs in the Nasdaq coicided with peaks and troughs in this indicator (blue arrows). The AD Volume Line is now showing some weakness with a trendline break and lower high.

A Head-and-Shoulders for Wal-Mart?

Wal-Mart is tracing out a continuation head-and-shoulders pattern with neckline support around 47.5-48. It is a bit unusual because the neckline is sloping up, which reflects higher lows since early February. A break below support would confirm the pattern and signal a continuation lower. Conversely, a break above the red resistance line would negate the pattern.

A High-Volume Harami for SUN

After a decline below 30, Sunoco (SUN) suddenl firmed with a high volume harami on Monday (18-May). These are potentially bullish candlestick reversal patterns that require confirmation with further upside. Look for volume to confirm any breakout.

10-Year Treasury Yield Hits Resistance

Broken support turns into resistance. This classic tenet of technical analysis is coming into play for the 10-Year Treasury Yield ($TNX). Notice that the 10-Year Treasury Yield broke support around 33-34 (3.3-3.4%) and this area turned into resistance in early May. 

A Massive Bearish Engulfing

Tidewater (TDW) formed a massive bearish engulfing that engulfed the prior five candlesticks. Volume surged to its highest level since January. What's more, this is the second bearish engulfing pattern in two weeks. These patterns reflect a raging battle at resistance from the January-February highs.