The Russell 2000 ETF (IWM) and the S&P 500 ETF (SPY) parted ways over the last few weeks. IWM peaked in early July and zigzagged lower. SPY, in contrast, zigzagged higher with a move above the mid July high. This divergence means small-caps are showing relative weakness.
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IWM and SPY Go Separate Ways
Technology Stocks Lead Market Lower on Sector Carpet
Stocks were weak on Monday with the Technology Sector (XLK) leading the market down. The average loss for a technology stock was .70 percent. Citrix (CTXS) was the big loser with a decline of 6.09%. The Consumer Discretionary SPDR (XLY) was also showing weakness.
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S&P 500 Bounces off Bullish Support Line on P&F Chart
With a big surge above 1350 today, the S&P 500 reversed its falling O-Column and started a rising X-Column on the P&F chart. This reversal creates support from the prior two O-Columns and the rising Bullish Support Line (blue). A move below 1320 would break these supports and turn this chart bearish.
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Hindenburg Omen Almost Triggers as New Lows Surge
This blog entry has been updated to reflect new information. The Hindenburg omen almost triggered on July 23rd. First, notice that new highs and news lows as a percentage of total issues surged above 2.8%. Second, notice that new highs were less twice the number of new lows. The third factor did not trigger as the NY Composite was not above the level it had 50 days ago.
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New Lows Expand on the Technical Indicator Scan
The image below comes from the predefined scans page. New highs were outpacking new lows earlier this month, but the tide is shifting as new lows expand on the NYSE and Nasdaq.
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Rising Yen Weighs on Japanese Stocks
With the market shifting to risk-off mode the last few days, the Yen ETF (FXY) broke above trend line resistance. The Yen has been moving higher since early July and the Nikkei 225 ($NIKK) has been moving lower. In fact, notice that this seesaw relationship has been quite strong in 2012. Export driven Japan is still dependant on the Yen for growth.
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Dow Industrials SPDR Forms a Doji near Resistance
After a four day surge that carried the Dow Industrials SPDR (DIA) above 129, the ETF formed a doji to signal indecision on Thursday. Also notice that DIA formed indecisive candlesticks at the prior two peaks. A gap down and long black candlestick on Friday would form a rare evening doji star.
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Finance SPDR Looks A Little Sick as the Price Relative Breaks Support
The Finance SPDR (XLF) led the market higher from early June to mid July, but stalled the last four days and started showing relative weakness. The indicator window shows the price relative (XLF:SPY ratio). Notice how this indicator broke support from the early July low and XLF is now showing relative weakness.
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Technology Sector Lights up the Sector Carpet
Stocks moved higher with the technology sector leading the charge on Wednesday. The Sector Carpet shows lots of green in this key sector. Also notice that four of the top five performers come from technology. The finance sector was the weakest with three of the five biggest losers coming from this sector.
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An Inverse Head-and-Shoulders Develops for Halliburton
With oil bouncing over the last few weeks, Halliburton is tracing out a little head-and-shoulders bottom. Despite a potentially bullish pattern, the stock remains short of the breakout needed to confirm a reversal. Also note that a volume expansion is needed to confirm any breakout.
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