September 28, 2012 at 12:12 PM | written by Arthur Hill
After a corrective decline the last few weeks, Cisco (CSCO) firmed on Wednesday with a small hammer and then surged above the wedge trend line with a gap on Friday. The gap-breakout is bullish until proven otherwise with a decline back below 18.25
Click this image for a live chart.
September 27, 2012 at 10:49 AM | written by Arthur Hill
The PerfChart below shows three month performance for two chip makers (Intel and AMD), two PC-related companies (Dell and Hewlett Packard) and mister softy (Microsoft). Only Microsoft is up during this period, and just barely. The others are having a really difficult time, even with the S&P 500 up almost 10% during this time. Apple, the un-PC, is faring much better with a large gain.
Click this image for a live chart.
September 26, 2012 at 4:16 PM | written by Arthur Hill
The battle for the breakout is on as the Metals & Mining SPDR (XME) declined to broken resistance and formed a big spinning top. These candlesticks show serious indecision. XME broke resistance in early September and is now trying to decide if this breakout is worth holding or not. Watch 44 up and 41.9 down for the next directional clue.
Click this image for a live chart.
September 25, 2012 at 1:12 PM | written by Arthur Hill
After a big run from late July to mid September, the Junior Gold Miners ETF (GDXJ) formed a bearish candlestick reversal over the last 4-5 days. First, there was the gap and doji. This signaled sudden indecision after a big jump. Second, selling pressure followed this indecision as the ETF gapped down and closed weak to form a long black candlestick. Thought not picture perfect, this pattern resembles a bearish
evening doji star.
Click this image for a live chart.
September 24, 2012 at 8:42 AM | written by Arthur Hill
The S&P 500 ETF (SPY) formed a rare bearish candlestick reversal pattern over the last two days. The Bearish Meeting Lines pattern forms with a white candlestick and a black candlestick that have relatively equal closes. In particular, the black candlestick reflects a strong open and a weak close. A move below the white candlestick low would confirm this pattern.
Click this image for a live chart.
September 22, 2012 at 4:10 PM | written by Chip Anderson
When we debuted our StockCharts Technical Rankings (SCTRs) back in November of last year, little did we know that the strongest stock for most of 2012 was just completing its turnaround. Check out this chart of PHM and its historical SCTR line:
This is another b-i-g chart, you may need to click it once or twice to get the full effect (or just click here for a live version). Pulte's continued strength is both technically impressive and economically promising. It has spent more time at 99.9 on our SCTR charts than any other stock so far.
- Chip
September 21, 2012 at 10:29 AM | written by Arthur Hill
The Dow Transports surged to resistance last week and plunged to support this week. Overall, the junior Average has been stuck in a trading range since mid June with support at 4900 and resistance around 5250. A break below 4900 would be clearly bearish for the Average and negative for Dow Theory.
Click this image for a live chart.
September 20, 2012 at 12:03 PM | written by Arthur Hill
The S&P 500 ETF (SPY) and the Commodity Index Fund ($DBC) have been positively correlated for almost all of the last 12 months. As the indicator window shows, the Correlation Coefficient (SPY,DBC) dipped into negative territory only twice and spent most of the time above .50. The red dashed line shows SPY and the bar chart shows DBC moving together as well.
Click this image for a live chart.
September 19, 2012 at 8:28 AM | written by Arthur Hill
The Utilities SPDR (XLU) is by far the weakest of the nine sector SPDRs right now. The P&F chart below uses daily price data and each box is valued at .30%. The ETF broke the Bullish Support Line in August, consolidated and then broke below the prior two O-Columns with this week. You can read more on PnF charts in our
ChartSchool.
Click this image for a live chart.
September 18, 2012 at 11:41 AM | written by Arthur Hill
Norfolk Southern (NSC) is a railroad company and a key part of the Dow Transports. The chart below shows NSC hitting resistance around 75 and falling over 1% today. Notice that MACD barely made it back in positive territory on the last bounce. Another downturn from here would surely turn momentum bearish.
Click this image for a live chart.
