Amazon.com rallied into its last earnings report, and crashed on a very weak outlook. Now traders may need to mind the price gap that resulted.
So far, AMZN hasn’t even tried to fill that chasm, which creates the risk that it will become a longer-lasting scar on the price chart.
Second, relative strength versus Consumer Discretionaries was slowing before the...
The Nasdaq-100 has led the broader market since early June, but now the tech-heavy index is showing signs of fatigue.
First, consider its falling MACD over the last four weeks. That’s occurred as the index struggles around 15,000, a sign of bearish momentum developing.
Second is the waning relative strength versus the S&P 500. NDX is starting to lag at the same...
The SPDR Financial ETF has been snoozing for exactly three months, and now could be coming back to life.
Several patterns stand out on today’s chart. First and foremost is its breakout above the 50-day simple moving average (SMA).
Next is the tight volatility squeeze immediately before the surge. That suggests price could be ready to move again following a...
After four months of sliding, bond yields may be turning higher.
The first pattern on this chart of the 10-year Treasury Yield is the double-bottom around 1.128%. This corresponds to an oversold condition on the weekly stochastic, which has often marked bottoms for TNX.
Next is the price action in the iShares 20+ Year Treasury Bond ETF (TLT). It tracks...
Cryptocurrency markets have rebounded in the last two weeks. Ethereum has taken the spotlight because of EIP-1559, but now attention could shift back to Bitcoin.
Consider first the daily chart, where Bitcoin is in the process of forming a bullish outside candle. It’s also holding the 21-day exponential moving average (EMA) and trying to break the 100-day simple...
Restaurant stocks had a big surge last month thanks to Chipotle Mexican Grill ’s monster quarter. Starbucks went along for the ride and has now pulled back.
The main thing on today’s chart is SBUX’s gentle retest of $118. That was an old high from April. Traders may now watch for it to become support, especially with the coffee chain having exited a 3-4 month...
Seven out of eight companies have beaten estimates this earnings season, but Netflix isn't one of them. It raises an important question: Has the streaming giant finally hit a long-term peak?
The first potentially bearish pattern on this chart is the falling trendline that began in mid-January. (Yes, NFLX hasn’t made a new 52-week high in 135 sessions. The S&P 500...
Attention has focused on growth stocks for the last two months. Now could be the time to return to industrial names like Ingersoll Rand.
The manufacturing conglomerate has gone nowhere for over five months. However it made a series of higher lows since mid-June while holding below $49.50. The result is a bullish ascending triangle, which now appears to be...
Potential warning signs continue to appear for the S&P 500. We’ve cited narrowing breadth and the rising wedge . Today we’re looking at a highly related symbol: Cboe’s ever-popular Volatility Index, or fear gauge.
The main pattern on VIX is its mild uptrend since the beginning of July. The S&P 500 made new all-time highs 11 different times last month, but the...
Bitcoin miner Riot Blockchain has been skidding lower since February, but now it could be ready to move again.
The main feature on its chart is its jump above the 50-day simple moving average (SMA) on July 26. It’s formed a tight consolidation pattern above the line since. The current action differs from a moment like early July, when it failed to hold above that...
Chinese technology stocks have suffered a violent correction in the last month as Beijing tightens regulations on the sector. As a result, some of most dynamic growth names in recent years are now potential values.
Alibaba in particular stands out because of two patterns on its weekly chart.
First, the hammer candlestick that was just completed.
Second is...
Next week could bring some big Ethereum news with fee burning expected to go live on Wednesday. Price action is also holding tight uptrends on the hourly and daily charts.
First, notice the rising 50- and 100-hour simple moving averages (SMAs). ETHUSD has bounced at one or the other at various times since its rebound started on July 21.
Next, prices on the daily...
The S&P 500 has risen for six straight months. Is it lining up for a pullback?
This chart shows a rising wedge that’s taken shape this month. Unlike the earlier ascending channel , this pattern is potentially bearish because the new highs aren’t keeping up with the higher lows. That suggests buyers are less willing to push the index into new...
Energy is the top performing sector this year, despite two months of weakness. It now appears hugely oversold in comparison with crude oil prices.
The chart below shows the ratio of the SPDR Energy ETF against crude oil CFDs. Notice how the current ratio is among the lowest of all time.
The next chart shows USOIL with daily candles. It had a quick dive under...
Once upon a time, Tesla was a fast-moving growth stock. But those days could be in the rearview mirror.
This chart highlights Bollinger Band Width and Historical Volatility on the electric car maker.
Notice how Band Width is under 8 percent – its tightest since February 2018.
Historical volatility has dipped back to May 2020 levels as TSLA pushed against...
Semiconductors have been a key pillar of the S&P 500’s advance since 2016, and now they may be flashing a warning signal for the overall market.
This chart of the Philadelphia Semiconductor Index shows how gains have been slowing all year. Prices have squeezed into an increasingly narrow range, with the 50-day simple moving average (SMA) recently dipping within...
This week’s Federal Reserve meeting could ignite some activity in the currency market. The Australian Dollar, in particular, has some interesting patterns.
First, stochastics on AUDUSD’s weekly chart have dipped to their most oversold level since February 2020. Next, consider how prices have returned to the 0.73 area where they peaked Aug. 31-Sept. 1. This is...
Copper had a dramatic run coming out of the pandemic, more than doubling between March 2020 and May 2021. Now, after a period of consolidation, it may be ready for more upside.
First consider the ascending triangle that’s formed with a top around $4.35. It’s currently attempting its highest close in six weeks, which could result in a breakout. Traders may now...
