The SPDR Financial ETF quietly did something historic last week: It closed at the highest price ever.
This is a big deal because XLF has been trapped at resistance running back to 2007 (before the subprime crisis). It was trying to break the old highs around $31 exactly a year ago, then lost 44 percent of its value when the pandemic hit.
XLF jumped early this...
Consumer staples have lagged this year as investors look past the stay-at-home trend. The biggest stock in the sector, Procter & Gamble, is forming a bearish triangle pattern.
The $128 level is important because it was resistance in February 2020 – immediately before the pandemic slammed markets. PG has been holding the level for more than two weeks while making...
The S&P 500 has steadily trended higher since November. However some chart patterns suggest it may be topping out – even if there isn’t significant downside risk.
First, a parallel price channel has become increasingly visible, especially after the most recent surge. Prices are currently at the top of the channel.
Second, the last three sessions have featured a...
Advanced Micro Devices has been consolidating after a big surge in July and August. Now the chip stock may be lining up for another move.
The first chart pattern is the descending trend line that began on January 11. It was resistance a week later, but yesterday AMD closed above it for the first time.
Next, AMD has spent the last two weeks building support...
Stitch Fix is in the midst of an explosive rally, and now the shares are pulling back.
This chart compares the current pullback with the previous bounce that began on January 12.
First, notice that SFIX retraced about half its move between December 7-22. It’s currently relinquished a similar amount (61.8%) of its second move January 12-27. That may suggest the...
Silver was in focus last week on talk of a short squeeze. The attempt fell flat, but the white metal’s technicals could be lining up for a rally regardless.
The first chart feature is the huge breakout above $20 in July. This was confirmed by retests on September 24 and November 30. Notice how prices rebounded sharply from both attempts. Interestingly, the...
Vale has pulled back following a sharp rally, creating a potential opportunity for global-economy bulls.
The Brazilian metals company ripped more than 80 percent between late-October and early January. Its $19 peak on January 4 was the highest price in almost eight years. VALE then retreated toward $16, and is now bouncing at its 50-day simple moving average...
Cirrus Logic began 2021 with a breakout to new highs. Now it’s pulled back to some potentially interesting levels.
First, Thursday’s close around $86 is near the old peak in January 2020. Will old resistance become new support?
Second, CRUS has returned to its 50-day simple moving average for the first time since it started running in late September.
Third,...
Pet supplier Chewy has been cooped up like a border collie in a kennel, but some technical patterns suggest it may run again soon.
CHWY doubled in value since mid-September, rallying out of a bullish ascending triangle. Its animal spirits took a nap around the “nice round number” of $100 in mid-December, and the stock has consolidated there since.
Bollinger...
Bitcoin broke out to new highs in December, and now Ethereum is trying to follow suit.
ETHUSD flirted with new highs above $1,420 as early as January 19 but wasn’t able to close there. It probed again several times without success before ripping to another new high today.
This time might be different because prices have formed a bullish ascending triangle....
Attention has recently focused on short squeezes and Big Tech earnings, but Energy remains the top-performing sector in 2021.
We started the year highlighting the golden cross in the SPDR Energy ETF, which proceeded to jump to a seven-month high. Prices have pulled back since and are now trying to hold their 50-day simple moving average (SMA).
The next feature...
Facebook tried to rally on strong earnings yesterday, and the bears were having none of it.
The social-media giant spiked to an eight-week high early, only to close at its lowest price in over a week. In other words, it had a large bearish outside candle on heavy volume.
This chart also illustrates the downward trendline on FB, which has successfully held the...
Yesterday could have been a significant day for the S&P 500. Let’s consider a few points.
First, the index fell 2.6 percent, its biggest drop since October 28’s 3.5 percent selloff. It’s also now slightly negative on a year-to-date basis.
Second, SPX made a new all-time high before 9:35 a.m. ET on Tuesday but ended lower. Followed by Wednesday’s slide to a...
Bitcoin has bled lower for the last three weeks, but some interesting things appeared on the chart today.
First, BTCUSD made a brief stab under $30,000 before recovering. That’s not just a psychologically important “round number.” It also matches the consolidation zone at the end of 2020 and the start of this year. That was a key breakout line at the time and...
Financials were one of the best performing sectors after the Pfizer vaccine news on November 9. They’ve pulled back in the last two weeks, creating a potential opportunity in one of the biggest and most liquid names: Bank of America.
BAC is trying to hold $30. Aside from its “round number” status, this level is potentially important for a few reasons.
First, it...
Oracle has been one of the quieter names in tech recently, but the chart is showing signs of a potential rally.
The software giant hit new highs in December following a strong quarterly report. Importantly, its newer cloud business surprised to the upside.
ORCL then pulled back and has retraced the entire move. Friday and Monday, it held the same $60 level...
Housing stocks have chopped in a very tight range since October, but now they’re trying to break out.
This weekly chart highlights the ascending triangle on the Philadelphia Housing Sector Index. Notice how HGX made consistently higher lows while staying under 405 – that is, until last Wednesday, January 20.
Interestingly, the news that day was bearish: NAHB’s...
The U.S. dollar index has been in a steady downtrend since May. It paused after breaking a short-term trend line on January 8, but the bearish pressure continues.
The main thing we wanted to highlight today is the overbought condition on stochastics. Each time it’s reached this high since March, lower prices have followed.
It’s also noteworthy that the recent...
