Major Indices

Dow Theory In Focus: Will Transports Confirm Industrials Highs?

As the markets push higher, investors tend to become more wary by nature. This often leads to the markets climbing the proverbial “wall of worry” and several investors missing out on the opportunity of higher prices. Will March offer more of the same? Or could the markets have something else in store for active investors. One of the many near-term indicators I am watching pertains to Dow theory. And more precisely,

NASDAQ Trend Line Converging With 2000 High: Breakout Coming?

As the major stock market indices march higher, all eyes are on the NASDAQ Composite. This popular tech index is getting a ton of press lately because it’s approaching its former all-time “bubble” highs from 2000. Yep, it took 15 years to get back to these levels. I’m also seeing a lot of “buzz” about how it’s different this time. Well folks, since TIME really doesn’t exist I’m not sure what

Euro Stoxx 50 Index Shows Topping Pattern

Many of our readers know that our big-picture charts for equity and commodity markets fit together to imply a somewhat pessimistic scenario for the global economy in coming years. We’re not gloomy by nature, but we go where the charts tell us. At present, global equity markets show topping patterns. Meanwhile, declining prices for major commodities match expectations of an economic slowdown. Although we see potential reversal signals in most

Why The Italian Stock Market Is Readying For Liftoff

The ongoing Greece negotiations have overshadowed the improving technical conditions of several European equity markets. The London Financial Times Index (FTSE) is attempting to breakout above the 1999 highs after successful tests of the 200-week sma in late 2014. The French CAC 40 Index (CAC) has broken out from a multi-year channel after a successful test of the 200-week in 2014. The FTSE Milan Index (MIB), representing the Italian stock

How The US Dollar May Impact US Equities: 4 Key Takeaways

What You REALLY Need To Know About The US Dollar… And How It Might Impact U.S. Equities Most active investors are aware of the near vertical move of the US Dollar Index over the past 7-months or so. Some investors might agree that the long-term RSI readings are at extremely overbought levels, implying some kind of forthcoming pullback. While still others might argue that such a pullback only alleviates such

SP 500 Correction Ahead? Putting Recent Pullbacks In Perspective

Over the past few months, the stock market has seen a few swings. This shouldn’t come as a big surprise. Back in August of 2014, I wrote a research note on the S&P 500 and the lack of a “technical correction.” In stock market lingo, a correction from current highs is generally considered to be -10%, while a pullback is generally less. At that time, the past 4 pullbacks averaged just over 4

Dow Jones To Gold Ratio: What It’s Saying Now

For much of the 1980’s and 1990’s the Dow Jones Industrial Average (DJIA) outperformed Gold, as equities soared higher. That period came to an end in 1999 as the tech bubble, 9-11, and the financial crisis hit the financial markets over a 12 year period. But since 2011, the Dow Jones has regained its advantage. The nearly 6 year old bull market in equities has investors feeling pretty good again, as the Dow

S&P 500 Update: Price Targets Coming Into View

The S&P 500 (SPX) closed last week at new all time highs. And the momentum carried over to Tuesday, as the index moved over the 2100 mark for the first time. Seems like a good time to reassess where we are, what hurdles we face, and where we might be headed (i.e. potential S&P 500 price targets over the near-term). For some perspective, the S&P 500 is currently just 4 percent higher

Japan’s Nikkei 225 At Major Technical Resistance Level

Japanese equities have been strong since bottoming last October. The most visible sign of the Japanese markets is the Nikkei 225 Index. Its rally out of the October lows brought it to the 18,000 level in December. And it has approached this level two more times since, the most recent occurring over the past week. Seems this level has turned into stubborn resistance. Why?  Perhaps this level is more important than a simple short-term