Major Indices

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

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

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.

Will Palladium’s Price Drop Pull The NASDAQ Down?

There is something very broken with Palladium. The drop in price has accelerated into September and created one scary chart for traders. This shouldn’t be entirely shocking, though… at least, if you have been following my thoughts and analysis on this subject. The continuous liquidation comes on the heels of my late August post on BartsCharts.com, wherein I highlighted the completion of Palladium’s pattern higher. Since that time, it’s been

Is The Russell 2000 Top In? Or Do Higher Targets Loom?

The Russell 2000 (RUT) has been consolidating for the past several weeks in a wide range. And since the other major US equity indices have been headed higher, you could also say that it has been underperforming. Needless to say, this has several investors concerned, as the Russell 2000 is made up of small cap stocks and often is indicative of investors risk tolerance. Currently the Russell 2000 is sitting on

S&P 500 Technical Update: Lower Support Levels in Focus

The price action in the equity markets over the past few days has been choppy, to say the least. The S&P 500 (SPX) is trading sharply lower today, and this comes on the heels of yesterday’s relief rally – a rally that had some traders feeling bullish again. So, now what? Well, as a firm believer in technical and intermarket analysis, I think active investors should be aware of key S&P 500

Nasdaq 100 Breakout: Watch That Retest

Over the past few months, I’ve written several pieces on the Nasdaq 100’s outperformance and leadership position. And just last month, I wrote about the Nasdaq 100 breakout above 4000. That breakout helped lead the Dow Jones Industrial Average and S&P 500 to new highs. But lost in all the excitement is the technical understanding that most breakouts get tested… whether it be sooner or later (from my post on 8/19): Now before

3 ETFs For Trading Japanese Equities Amid Yen Weakness

There have been a couple of developments in the Japanese markets that traders are (or should be) monitoring. In the equity markets, there is a bullish consolidation pattern developing that active investors with an intermediate-term horizon may benefit from. Yet, at the same time, Japanese equities investors will need to keep an eye on the currency market with a focus on the impact of a weakening trend in the Japanese Yen’s value to the US Dollar.