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Altera Leads with New High for 2014

Altera, which is part of the semiconductor group, is showing relative strength this year with a price breakout and new high for the year (2014). The stock established support from mid November to mid January and broke out with a gap in January. After some backing and filling, the stock continued higher with another big move the last three days. The indicator window shows the price relative (ALTR:$SPX ratio) moving to a three month high.

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Steel ETF Forms Piercing Pattern at Key Level



The Steel ETF (SLX) is perking up after a pullback to support. First, notice how broken resistance in the 46.5-47 area turned into support and held in November and December. With the January test, the ETF formed a piercing pattern on Tuesday and confirmed this candlestick reversal with another gain on Wednesday. The indicator window shows the Stochastic Oscillator turning up from oversold levels.

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Gold Miners ETF Challenges First Resistance



The Gold Miners ETF (GDX) remains in a downtrend overall, but the ETF is showing signs of life with a resistance challenge to start the year. Resistance in the 22-23 area stems from broken support, the August trend line and the early December high. GDX needs to clear this zone before chartists can consider this surge more than just an oversold bounce.

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SPY Breaks Support with Gap Down

After weeks of indecision, the S&P 500 ETF (SPY) made a decisive move with break below the late July low. The gap and support break are short-term bearish as long as they hold. Using the Fibonacci Retracements Tools, chartists can estimate next support in the 50-62% retracement zone, which equates to the 162-164 area.

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Animated GIF shows Apple at Make-or-Break Level within Trading Range

The animated chart below shows Apple at a key resistance zone right now. A double bottom could be forming, but the stock is in a long-term downtrend and stalling in the middle of the three month range. A move above 435 would open the door for a double bottom resistance test. A move below 415 would set up a support test in the 390 area.  Note: this animated gif was created with Adobe Elements.

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A Momentum Breakout for the Uranium-Nuclear ETF

The Uranium-Nuclear ETF (NLR) caught a bid last week and broke resistance to forge a 52-week high. Notice that a series of rising troughs (green line) preceded this breakout. The indicator window shows MACD confirming strength with a 52-week high of its own.

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Technology SPDR Hits Moment of Truth at Fibonacci Cluster Zone

After a plunge from mid May to mid June, the Technology SPDR (XLK) bounced back to the 31 area to reach its first resistance area. First, broken support turns into resistance here. Second, the Fibonacci retracements tools show a cluster in the 31-31.33 area. Notice that these Fibonacci retracements were drawn from the mid May and mid June highs.

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MidCap SPDR Bounces off Support Zone, but Still Lags

After hitting a new high in mid May, the S&P MidCap 400 SPDR (MDY) fell back towards its April lows in June. Combined with the 38.2% retracement, these lows mark support in the 200-202 area. MDY has yet to fully recover from last week’s plunge and needs to break the May trend line before we can take an oversold bounce seriously. Also notice that the ETF shows relative weakness as the price relative moved to its lowest level of the year.

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Two Technical Features Suggest Support for the Homebuilders SPDR

The Homebuilders SPDR (XHB) is finding support with a bounce last week and small gain in early trading on Thursday. Notice that the ETF is trading near the November trend line and the 61.80% retracement. These two items suggest support is at hand. A break above last week’s high would reverse the four week down swing.

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Facebook Lags, but Support Could be Near

Facebook (FB) led the market from late October until early January, but stumbled in January and has lagged the S&P 500 since. Despite relative weakness and a 4-5 month downtrend, support could be near as the stock trades near the 61.80% retracement and broken resistance.

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All Ords Index Breaks Key Support

Weakness is spreading in Asia as the Australian All Ords Index ($AORD) breaks support from the April lows. The chart below shows the index testing support last week. $AORD closed at 4873 on Monday, which is just below the April lows. Also notice that the index has been underperforming the S&P 500 since late February.

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Charts for Six Stocks Reporting Earnings on Monday

It is a big week for earnings so here are CandleGlance charts for six stocks reporting today. Of interest, ACE is hitting support from broken resistance, CAT is nearing the November low, HAL remains in a falling channel and Texas Instruments is testing support.

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Copper ETF Hits Long Term Support Zone

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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Intel Surges to Resistance on High Volume

Intel gave a lift to the MarketVectors Semiconductor ETF (SMH) and Semiconductor SPDR (XSD) with a 3.13% advance on the highest volume since late February. Notice how the stock formed a higher low with the late February surge and then consolidated the last five weeks.  A consolidation breakout would signal a continuation higher.

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Silver Tests Long-term Support $SILVER

After falling sharply in April and September 2011, Spot Silver ($SILVER) moved into a trading range with resistance at 36 and support at 26. Silver has touched support at least three times and is poised to test this area again. This marks an important test because a break would signal a continuation of the 2011 plunge. 

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Commodity Index Fund Hits Resistance At Support Break

The Commodity Index Fund (DBC) broke down with a sharp decline in February and then rebounded in March. This rebound was cut short when the ETF hit broken resistance and turned down on Monday-Tuesday. Last week’s highs now mark the first resistance level to watch.

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Defense Index Breaks Support on Sequestration Fears

The DJ US Defense Index ($DJUSDN) was hit hard the last three days and broke below the January lows. This index is now down for the year, which means it is underperforming the broader market. The indicator window shows the Percent Price Oscillator (PPO) turning lower, but remaining in positive territory for now. A move into negative territory would turn momentum bearish. Click here to see the stocks in this index.

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Microsoft Fails at Resistance as OBV Sinks

Microsoft (MSFT) is having a tough year already as the stock failed to clear resistance and moved sharply lower the last two days. Resistance at 27.75 stems from broken support and the November-December highs. The indicator window shows OBV moving steadily lower, which indicates continued selling pressure.

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Lululemon Forms Bearish Engulfing at Resistance

Not all stocks participated in Wednesday’s big advance. Lululemon (LULU) started strong,
but quickly succumbed to selling pressure and closed sharply lower. With a strong open
and weak close, a bearish engulfing pattern formed at resistance. Also notice that MACD
moved below its signal line last week.  

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Top 5 Technical Developments for 2012 – Number 2 – Technology SPDR (XLK) Fails at Broken Support

The Technology SPDR (XLK) led the market in the first half of the year, but lagged the market in the second half and underperformed the S&P 500. The technology sector accounts for over 19% of the S&P 500 ETF (SPY) and is by far the biggest sector. Lack of leadership from this key sector is a concern as we head into 2013. The chart below shows XLK breaking the August 2011 trend line and this break-zone turning into resistance in the 29-29.5 area. This zone marks clear resistance because the ETF failed to hold above 29 at least five times in the last nine weeks. Note that XLK formed a bearish engulfing the first week of December and a black candlestick last week. The base case scenario is for a continuation lower with the next support zone in the 26 area. A break above 29.50 is needed to change this bearish prognosis. 

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Apple Reverses at Long-term Support

Apple (AAPL) tested its mid November low and long-term support with a dip below 520 on Thursday. Support in the 520 area extends back to the May low. Notice how the stock forged an intraday reversal for the second time in two months. Also notice that volume exceeded 40 million shares.

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Finance, Industrials and Utilities Lead Market Higher

Acheck on the sector summary shows the finance, industrials and utilities sectors leading the market on Wednesday afternoon with 1+ percent gains. Users can click on the sector names to drill down and see which industry groups are leading and lagging within the sector.

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Aaron Forms A Fibonacci Retracement

Aaron (AAN) surged above 32 and then fell all the way back below 29. Even though this decline looks excessive, note that it retraced 62% of the prior decline and the stock firmed near broken resistance. A break above the mid November high on good volume would be bullish.

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Utilities SPDR Gets Oversold Bounce

After a sharp decline the first half of November, the Utilities SPDR (XLU) firmed for two weeks and then surged above its first resistance level. Notice that upside volume also surged twice in the last six days. Broken support turns next resistance in the 35.75-36 area.

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Silver Miners ETF Breaks Key Support Level

The Silver Miners ETF (SIL) moved into a tight trading range in October and then broke support with a sharp decline the last four days. This move pushed prices below the lower Bollinger band as volatility expanded. Also notice that the ETF is now underperforming the Silver ETF (SLV).

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