Chartology

Why The Oil And Gas ETF (XOP) Is Rallying

The Oil and Gas ETF (XOP) suffered a tremendous decline from the 2014 all-time high at $84. In sum, XOP retraced 50% of the move from $23 to $84 from the bear market low in 2009 to its peak in 2014. The precise 50% retracement level is $53.53. Technicians like to find a confluence of technical significance when identifying support and resistance. And with this in mind, we can see

Bounce or More? A Look At Where The SPX Rally Headed

In my last comment about the S&P 500, I argued that as long as a demand zone at 1986-1953 held the stock market would stay on course toward higher highs. That area of technical support failed and SPX sold off sharply; 1986-1953 now represents technical resistance. After the recent decline, it’s time to reassess. On Wednesday SPX put in a substantial bullish hammer candlestick (small real body, longer lower shadow

Small Cap Outperformance: Pointing to a Market Bottom?

One positive mentioned plenty in the market this week is small cap outperformance. One might suggest that we are at a sign of a bottom because of it. Well, that may be a farce. Let’s take a look, starting with the Russell 2000. The Russell 2000 iShares ETF (IWM) has broken a major 1 year topping pattern, pushing below 2014’s year-to-date support in February and May near 107. It’s unorthodox, but

5 Stock Charts Calling The Shots: F, HD, KO, TWTR, GPRO

During bull or bear markets, it’s always important to be on the lookout for changes in market behavior. For instance, when market pullbacks are consistently bought at 2 to 4 percent declines, it becomes worrisome when we the markets dip deeper. Or when leaders and momentum stocks get sold and defensive stocks get a bid. These examples are apparent in the current stock market decline and are a representative mix of what

Is Gold Setting Up For A Santa Claus Low?

Gold is getting tons of press recently and I’ve been blogging about the metals for a while. This post is going to go into some of the underlying math currently driving the PRICE action and how a case can be made that the $1050 to $1090 level is going to be very important for Gold prices. And, even more interesting, this level could come into play around around the Christmas

Investors: Was Last Month’s Doji Star A Warning Sign?

Did the Dow Jones Industrial Average (DJIA) create a “Doji Star” topping pattern last month? Possible! Doji Star patterns (which look like a + sign on a chart) can take place at key reversal points (i.e. highs & lows). The chart below highlights that a Monthly Dow Jones Doji Star took place in October of 2007, which ended up marking the high that year. Did the Dow Jones create a

Corn vs US Dollar: Chart of the Day

Many are aware of the the recent US Dollar strength. As well, many are aware of the weakness in commodities. After all, strong moves in the US Dollar (up or down) tend to effect commodity prices. Take Corn prices for example. Let’s just say the recent run higher in the buck has hit Corn pretty hard. Or at least this chart says so: Couple the strong buck with a bumper

S&P 500 Technical Support Update: Levels And Breadth

The past two months have seen several developments take shape that remind me of the February sell-off. I’m not saying that this pullback will unfold the same way, but I do think that issues with small caps and emerging markets (a good risk gauge), coupled with poor market breadth have once again played a role in taking the S&P 500 (SPX) lower. How much lower? No one knows for sure, which is

Chart Flip: Is A Russell 2000 Breakout In The Cards?

From time to time I like to look at various markets from a different perspective, as I am always on the lookout for chart patterns showing breakouts and breakdowns. Earlier this year, I wrote a “Market Masters” article for See It Market showing that sometimes standing on your head can help improve your investment results! I enjoyed writing that article so much that I thought I’d try it out again.