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StockCharts Blogs - Don't Ignore This Chart! |
The market summary page provides an excellent overview of market performance, both end-of-day and intraday. You can change the setting at the top. Notice that materials led the market on Thursday, while healthcare, consumer staples and technology lagged. It is only one day, but relative weakness in technology should be monitored closely.
After a breakout and surge from March to May, the British Pound ETF (FXB) consolidated with an ascending triangle over the last two months. Notice how FXB hit resistance at 165 a number of times since early June. Also notice that the early July reaction low is higher than the early June reaction low. A resistance breakout would confirm this bullish continuation pattern.
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In less than 9 months, the Nasdaq has gone from being 40% below its 200-day EMA to being 10% above its 200-day EMA. Talk about a huge swing. The percentage difference was determined using the Percentage Price Oscillator (1,200,1). This setting reflects the percentage difference between the 1-day EMA, which is the daily closing price, and the 200-day EMA.
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Freeport McMoran Copper & Gold (FCX) kept pace with the Nasdaq by advancing 13 of the last 14 days. In the process, the stock surged to its June high, which may offer resistance. Also notice that RSI moved above 70 to become overbought.
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With gains over the last few days, the Financials SPDR (XLF) is challenging an important resistance zone on the daily PnF chart. Notice that broken support (2008) around 13 turned into resistance in 2009. XLF is currently on a bullish PnF signal with a price objective around 21. A break above resistance would reinforce this bullish signal.
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The Dynamic Yield Curve shows two plots over the last eight months. The black line shows the yield curve in December, while the maroon line shows the current yield curve. Today’s yield curve is much steeper because 3-month rates are virtually unchanged since December, but longer rates have risen this year.
For the first time since January, the Dow Industrials moved above the 9000 level. It took around two months to fall from 9000 to 6500 and then 4-5 months to get back above 9000 (March to July). There is potential resistance in this area, but the trend remains up.
The inter-market relationship since early March remains in place. Stocks and commodities are up sharply over the last two weeks, but bonds and the Dollar are down. This relationship suggests that stock market weakness would lead to weakness in commodities, strength in bonds and strength in the Dollar.
After a long white candlestick on Monday, Research in Motion (RIMM) pulled back immediately on Tuesday with a small decline. Tuesday’s trading has been within Monday’s range thus far. Should this range hold, an inside day or harami would take shape. A harami is a potentially bearish candlestick pattern. In addition, notice that the harami is forming at retracement resistance.
The AD Line for the NYSE remains strong after a break above the June high. In fact, the AD Line is leading the NY Composite because the latter has yet to break its June high. Leadership from the AD Line is positive for the market overall. You see breadth stats for the NYSE, Nasdaq and Amex with the CandleGlance charts.
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
