Electronic Arts Bounces off Support with Bullish Engulfing
Electronic Art (ERTS) declined to the August low in mid January and then firmed the last two weeks. A bullish engulfing formed on Friday as the stock opened weak and closed...
Medical Devices iShares Challenges Late Summer High
The Medical Devices iShares (IHI) has been moving higher since mid December and is now challenging its late summer high. Also notice that upside volume picked up over the last 4-5 weeks. While a breakout would be bullish, the ETF is getting overbought after a 13+ percent advance off its mid December low. Click this...
Oil Runs into a Wall of Resistance
The US Oil Fund (USO) started the year strong with a surge above 39, but cannot hold above this level as the ETF plunged over 1.5% on Thursday. USO was also turned back in the 39-40 area in November and December. In the indicator window, note that Spot Light Crude ($WTIC) has had trouble staying...
ADP Breaks Resistance with big Surge
Automatic Data Processing (ADP) may have an antiquated name, but the stock has outperformed Apple (AAPL) since mid September. On the chart below, ADP broke resistance from the October-November highs with...
Retailer SPDR Tests Breakout and Near Term Support
The Retail SPDR (XRT) is under pressure today after a miss from Best Buy (BBY) and a lackluster Retail Sales report. XRT broke trendline resistance in early December and then consolidated....
Broken Support Turns First Resistance for German DAX
After forming a rising wedge in October, the German DAX reversed in the key retracement zone and broke support with a sharp decline below 5700 the last few days. These are...
A Hanging Man and a Harami for XLK
The Technology SPDR (XLK) is hitting resistance from the late October high with a Hanging Man last week and a Harami this week. Both candlesticks are bearish reversal patterns. The Hanging...
Resistance Turns Support Turns Resistance Again for the German DAX
Traditional technical analysis teaches us that broken resistance turns support and broken support turns resistance. This concept is alive and well on the German DAX Index ($DAX) chart. Using the Auto...
DIA Solidifies Resistance with Two Gaps
For the second time in three weeks, the Dow Industrials SPDR (DIA) moved above 121 and then gapped down. These two gaps indicate that DIA has stiff resistance in the 122...
Broken Resistance Turns Support for Regional Bank SPDR
The Regional Bank SPDR (KRE) broke resistance with the October surge and broken resistance turned into support. This is a basic tenet of technical analysis. The throwback to broken resistance held...
A Failed Breakout and Island Reversal for MDY
With a gap down and sharp decline the last two days, the S&P MidCap 400 SPDR (MDY) failed to hold the resistance breakouts around 160. Also notice that the ETF formed an island reversal, Last Thursday's gap was countered by today's gap to create a three-day price island. Click this chart for a live image...
Oil Service HOLDRS Runs into Resistance after Gap
The Oil Service HOLDRS (OIH) surged over 30% in October and hit resistance in the 137 area. Resistance here stems from broken support and the August highs. This level also marks a 61.80% retracement of the prior decline and the ETF is quite overbought after the October run. Click this chart for a live image....
