Major Indices

Stock Market Outlook: Weekly Reversal Leaves Technical Damage

What a difference a week makes. The market ended the previous week on a strong note. And the S&P 500 seemed poised to follow the Nasdaq Composite and push to new all-time highs. But these and any other bullish hopes for the stock market were swiftly extinguished as the market put in an ugly reversal last week that resulted in a good deal of technical damage. The S&P 500 and Nasdaq

The Rotation Report: Are Clouds Moving In Over Market?

The action in the mega cap leaders has just been absurd of late. For example, take Amazon (AMZN). It was already significantly overbought on its weekly time-frame leading into earnings and it just happened to gap up 100 dollars and open 15 percent above the weekly upper bollinger band (the most since 1999). You don’t see this action very often. Sure seems like late stage bull market stuff. But how

What’s Next For The VIX? Checking In On The Volatility Index

Of late, volatility has been volatile. In the past month, the Volatility Index (VIX) has done a complete round trip – surging 68 percent in 11 sessions and then giving it all back in the next eight. As the fear premium related to Greece and Chinese stocks came out, there was less need to buy protection – at least this is the impression one gets looking at how market participants

Investors: Put This Dow Jones Resistance Level On Your Radar

Even with the emergence of the S&P 500 and Nasdaq Composite, the Dow Jones Industrial Average is still viewed prominently in international investing circles. So it shouldn’t be a surprise that the highs reached in May are a key Dow Jones resistance level (and likely watched by many). But those highs may be even more important than just any old market highs. Let’s review:  Looking back over the past 15 years,

Non-Confirmation From Semiconductor Stocks A Growing Concern

There seems to be a lot of discussion on Twitter and related sites like StockTwits about the lack of confirmation in market breadth after the recent rise in equities. Some are even noting bearish charts for the Nasdaq going back to the dot-com bubble peak. Other great traders and bloggers are discussing the breadth issue, most notably my good friend Ryan Detrick. But there is another piece of data that’s

Is The CRB Commodity Index Nearing A Return To Favor?

We’ve spent some time in the past discussing the very powerful technique of using ratio analysis to watch for rotation and inter market strength when comparing various assets classes or single instruments to others within their sector/market. We’ve also shown that patterns can and do work in ratio analysis. That being said, we are getting a bit one sided (to the bearish side) with regards to Crude Oil, precious metals, and select

The Rotation Report: Markets On The Move

As soon as the markets kicked off on Monday, the Greece contagion scenario came off the table. And immediately the markets were off to the races. Interestingly sentiment remained negative most of the week with the NAAIM index actually falling. This is a big sign that the negative disposition of market participants (that is a staple of bull markets) is still present. Let’s review some charts and see what’s happening.

U.S. And German Stock Markets Await Confirmation Of Next Move

With several U.S. and European stock markets tracing potential topping patterns, a jolt to the markets this week could lock in a market top. The event that triggers the next cascade of market corrections could come in any of several forms – for example a new stumbling point on the road toward a Greek agreement, or a poorly received statement from the Fed or ECB. Here we show some of

Decision Time For The German DAX

With the Greece negotiations lurching toward a conclusion, the next few days may provide a key insight into the market’s next big move. Here we present the technical case for our main bearish scenario for the German DAX stock market as well as an alternate bullish one. On a weekly chart, the DAX has recognized the boundaries and harmonics of a channel stretching back to 2012. With that as a guide,

Market Update: The VIX Creeps As Investors Fight Capitulation

Yes, the market is oversold and due for a bounce. But at the same time, the market is having trouble holding a bid. And the Volatility Index (VIX) is creeping higher. Let’s recap:  On Tuesday the S&P 500 saw a big reversal higher. But much of those gains were given back on Wednesday. And today we opened higher, only to see stocks sell off throughout the day. Couple this weakness