April 26, 2013 at 12:54 PM | written by Arthur Hill
Facebook (FB) has underperformed the market this year, but momentum is improving as MACD moved above its signal line this week. Notice how the stock held support in the 25 area and gapped up on Friday. This gap is bullish as long as it holds. A move below 25.9 would negate the gap.
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April 19, 2013 at 2:04 PM | written by Arthur Hill
With a sharp decline this month, the Copper ETF (JJC) entered a support zone that extends back to the 2010 lows. The ETF also become oversold as RSI dipped below 30 for the first time since September 2011. The knife, however, is still falling as long as RSI remains below 30.
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March 29, 2013 at 1:47 AM | written by Arthur Hill
It has been a bearish year for Spot Copper ($COPPER) and the recent breakdown points to even lower prices ahead. In addition to MACD turning negative, copper broke triangle support to signal a continuation of the prior decline (2011). The next support zone resides in the 2.80 area.
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March 01, 2013 at 11:43 AM | written by Arthur Hill
After a sharp decline last week, the Market Vectors Semiconductor ETF (SMH) formed with a small rising wedge the last six days. These are typically bearish continuation pataterns and a break below 34.5 would signal a continuation lower. The indicator window shows the
KST momentum oscillator moving below its signal line last week.
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February 27, 2013 at 11:13 AM | written by Arthur Hill
Big defense contractors got slammed in late January as the market priced in a worst-case sequester scenario in about seven trading days. LMT firmed after this sharp decline and then surged with a long hollow candlestick on Wednesday. This move was strong enough to push CCI above 100 and trigger a bullish signal on our predefined scans page.
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February 19, 2013 at 2:47 PM | written by Arthur Hill
The stock market may be overbought and sentiment may seem overly bullish, but buying pressure continues to outpace selling pressure. Case-in-point: the Retail SPDR (XRT) surged to a fresh 52-week high on Tuesday and the price relative (XRT:SPY ratio) is challenging its November high. Strength in retailers is a positive sign for the economy and the market.
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December 27, 2012 at 11:29 AM | written by Arthur Hill
The Dow has fallen over 300 points in the last six trading days and is now testing the 200-day moving average. The senior Average broke above this key average in early December and needs to hold the breakout. A break back below 13000 would be quite negative. MACD is already signaling a turn in momentum as the oscillator moved below its signal line today.
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November 28, 2012 at 3:15 PM | written by Arthur Hill
Momentum is improving for lululemon (LULU) as MACD turned positive for the first time since late October. On the price chart, the stock is challenging the upper trend line of a falling channel. A breakout would signal a continuation of the August-September advance and target a move to new highs.
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November 08, 2012 at 12:13 PM | written by Arthur Hill
The Dow Jones Defense Index ($DJUSDN) plunged on Wednesday and broke support with further weakness on Thursday. This move reverses a five month uptrend. MACD also moved lower and is on the verge of turning negative for the first time since mid June.
Click here to see a listing of stocks in this group.
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October 25, 2012 at 12:06 PM | written by Arthur Hill
Nordstrom (JWN) surged last week, but gave back these gains
with a sharp decline the last six days. JWN is now testing support from the
late September low. Momentum abruptly shifted as well. Notice that CCI plunged below
-100 and this may signal that a new downtrend is emerging for JWN.
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