Major Indices

Dow Jones Industrial Average (DJIA): Technical Chart Update

Similar to other major U.S. stock market indexes, the Dow Jones Industrial Average (DJIA) has been moving higher amidst a considerable amount of market chop. As we near the end of May and the end of a seasonally favored market period, I thought it would be good to update readers on the current technical state of the Dow Jones Industrial Average. On October 15th, 2014 the Dow Jones Industrials (DJIA)

Is The Russell 2000 Index Targeting New Highs?

The Russell 2000 Index (RUT) has received some attention lately as it is still beneath its April highs. However, from a technical perspective the Russell 2000 is still in good shape. Back in February, I wrote about the Russell 2000 Riding Its Bullish Channel Higher. It’s time for an update. In the chart below, we can see that the RUT is well above near-term supports. As well, we still have an outstanding long

Chart Of The Day: German DAX Bounces Off Key Trend Line

Over the last two weeks, the German DAX stock market index has tested and held its uptrend line from last October. Holding this trend line would be a huge win for European stocks, as well as other major stock market indices. Here’s why. First, the German DAX has been a global leader since last October. While U.S. equities (i.e. the S&P 500) were consolidating in early 2015, the German DAX was

Can The Bank Stocks Lead The Market Higher?

Several key bank stocks came out of earnings season with some renewed energy. The recent rally has helped the broader stock market push to new all-time highs. At the same time, the sector is nearing an important point for investors. Can the banks lead the stock market higher yet? Or will the rally falter? JP Morgan Chase (JPM) and Goldman Sachs (GS) have been recent leaders amongst the money center banks. But even

The Rotation Report: Market Breakout Or Fakeout Coming?

It’s amazing to watch the stock market maintain a bid off throughout recession-like economic data. No matter how you read the economic data, track it, or concern about it, apparently it continues to be good news for stocks. Or, that is, until is isn’t. Check out @MishGEA’s take on the consumer after this week’s retail sales. I’m not a fundamentalist, but I respect Mish’s work and always take note when he

Dow Jones Transports: Is This Parabolic Move Topping?

The Dow Jones Transports are getting a lot of attention here, and rightly so. They are trading pretty heavy and have been a key ingredient to this incredible ride higher. After reaching 52 week highs late last year, the Transports have traded sideways to lower for 6 months. This looks like it could be a topping pattern. Careful here. To be honest, I’m not even sure what comprises the Dow Jones Transportation Average

iShares Russell 2000 (IWM): Complex Topping Pattern Forming

Today we’d like to point out one of the U.S. Stock market indices that looks appears to be topping: The Russell 2000 (RUT). And we’d like to focus on the iShares Russell 2000 ETF (IWM) for this exercise. But before we share why we think the Russell 2000 ETF (IWM) is topping, let’s review what goes into a market topping process. One thing traders can expect reliably from topping events in stock indices

The Rotation Report: Stock Market Breadth (In Charts)

I noted in this week’s Top Trading Links that it feels like Groundhog Day. It’s been tough trading over the past several weeks because it seems like every weekend is the same story. Here’s an excerpt: It’s like Groundhog Day. The stock market has pushed back to the highs, the VIX has pushed back to the 12s… Incredible. Will this week be any different? Well, we need to keep an eye on stock

Bullish Or Bearish Stocks? Here’s What The Charts Are Saying

Probabilities Rather Than Forecasting Long-time followers of CCM know we are not fans of market forecasting, which drags the human desire “to be right” into an already complex investment equation. However, we are big fans of assessing bullish probabilities relative to bearish probabilities based on the hard evidence we have in hand. What Is The Data In Hand Telling Us? As shown in the chart below, the broad NYSE Composite

NASDAQ Uptrend Intact: Higher Price Targets Still In Play For 2015

After another stealth selloff early last week, the NASDAQ Composite recovered nicely on Friday. That rally started right at its uptrend line and has carried over the weekend into Monday morning. Over the short-term, traders will want to monitor this trend line. However, it does appear that the NASDAQ still wants to go higher in 2015. Here are some observations to accompany the daily chart of the NASDAQ Composite: 1.  The