Don't Ignore This Chart

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About this blog: The blog contains daily articles with intriguing or unusual charts selected by one of our Senior Technical Analysts, along with a short explanation of what exactly caught their attention and why they believe the chart is worth noting.

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Don't Ignore This Chart

Germany Suffers A Setback Worth Watching

by Greg Schnell

This rally has been great, lifting portfolios around the world. With lots of optimism helping the market here, there are some worldwide charts that I reviewed on the Weekly Market Roundup show. There is a link to the video further down in this article. Back in October (see the red arrows on the chart below), I mentioned that the German stock market was breaking down in a pattern that we have seen before. This breakdown coincided with USA charts breaking down in October 2018, with the first bar breaking below support on the $DAX and the US market breaking the Read More 

Don't Ignore This Chart

Save This Chart To Keep Track Of The Yield Curve Interaction With The Economic Cycle

by Julius de Kempenaer

The chart that I want to share with you today is part of a (bigger) research project that I am doing with regard to the various phases in economic cycles and their relation to the (shape of) yield curve. The chart above shows the S&P Index in the main panel. The panel below shows the difference between 10yr and 2yr yields on US treasuries. This 10-2 relationship is generally used to indicate a normal, 10yr > 2yr, or inverted, 10yr < 2yr, shape. The overlaid, red and green, dashed vertical lines indicate the start of periods of Expansion Read More 

Don't Ignore This Chart

REITs, Utes and Healthcare Lead New High List

by Arthur Hill

Chartists looking for the sectors with the most stocks in strong uptrends can turn to the High-Low Percent indicators. High-Low Percent equals new 52-week highs less new 52-week lows divided by total issues. This indicator is positive when new highs outnumber new lows and negative when new lows outnumber new highs. The more positive the indicator, the more new highs and the more internal strength. The chart below shows S&P 500 High-Low% ($SPXHLP) in the top window and the High-Low Percent histograms for the top five sectors, as ranked by the 5-day average of High-Low Percent. Note Read More 

Don't Ignore This Chart

Fastenal Starts Speeding Up (FAST)

by Greg Schnell

Recently, Fastenal has been building a bias to the upside. Its December low, notably, was higher than its previous low in October, which itself had improved upon the prior June low. This progressive stock continued to make higher lows even as the overall market broke to new 52-week lows. Fastenal's SCTR, meanwhile, has pushed up to the highest level in a year. The relative strength is making all-time highs. Last week, the price edged out the previous 52-week highs; that strength continued into this week. The one-year downtrend in momentum has now been broken to the upside Read More 

Don't Ignore This Chart

Amazon and the Seismic RSI Shift

by Arthur Hill

The overall trend for Amazon shifted from bullish to bearish in October and RSI caught this shift. Before looking at RSI, let's review price action and the bigger trend at work. The chart shows Amazon moving to a new high in early September, forming a lower high in early October and breaking support with a sharp decline in October. The index fell further in the second half of October and broke the 200-day SMA for the first time since March 2016. The stock then bounced around the 200-day SMA for a few weeks and plunged in December. This was the first 52-week low in Amazon since January Read More 

Don't Ignore This Chart

Jinkosolar Stares At A SunRise (JKS)

by Greg Schnell

Jinkosolar has been on a big roller coaster loop for the last two years. In recent weeks, the stock has started to break out; this week, the move has been 9% in the first four days. The relative strength (shown in purple in the chart below) suggests the stock is starting to outperform the S&P 500 average as the ratio is rising. The new six-month highs in relative strength provide a visual clue that the stock is performing well. The full stochastic has moved above 80, which also suggests strong price action. Price is flying up the right hand side like a wide Read More 

Don't Ignore This Chart

Real(ly) Good Real-Estate (XLRE) But It Needs To Break Resistance

by Julius de Kempenaer

The Relative Rotation Graph for US sectors shows a remarkably steady rotation for the Real-Estate sector. This is a daily RRG showing a 15 day tail, or three weeks. Yesterday XLRE crossed over into the leading quadrant and is now the only sector inside the leading quadrant at a solidly positive RRG-Heading. Real Estate Select Sector SPDR Fund - XLRE The daily price chart for XLRE shows a steep rally from its late December low to current levels where it is running into overhead resistance. $34.10 (or $34.50 unadjusted) is the level to watch for a break higher. A Read More 

Don't Ignore This Chart

Autozone Gets Back in Gear

by Arthur Hill

Autozone (AZO) is a leading stock because it recorded a 52-week high in December and remains above the rising 200-day SMA. The S&P 500, on the other hand, recorded a 52-week low in December and remains below its 200-day SMA. The chart below shows AZO with a falling wedge correction over the last six weeks. Even though this correction occurred when the S&P 500 moved higher, I still view it as a pullback within a bigger uptrend. The falling wedge is typical for a pullback within a bigger uptrend and the decline retraced around 50% of the prior advance. Think two steps forward and Read More 

Don't Ignore This Chart

Is The Pressure Relief Valve Starting To Release? $SPX

by Greg Schnell

Well, what's it going to be - up or down? The market made its high on Options Expiration Friday and has been unable to take out that high for 6 days. With AAPL trading up in after hours and other tech names to report this week, will we be able to push through that high? The market is very sticky here. For technicians, the bright light we see ahead is a freight train loaded with resistance on daily and weekly charts. Fundamental investors, meanwhile, continue to see earnings downgrades. We have not had heavy volume on the selling days. However, the pressure got to me Read More 

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Another Gap for QQQ

by Arthur Hill

Last week (Monday) I featured an evening star reversal pattern in QQQ. This pattern did not foreshadow further weakness as QQQ firmed in the 161 area the next day and gapped up on Friday. This gap did not last long as QQQ gapped down on Monday morning and filled Friday's gap. We could probably call this an island reversal because the gap up and gap down match. Today's gap is still a work in progress and may or may not hold. Overall, QQQ has moved sideways the last eight days as two conflicting trends battle it out. Long-term, I think the trend is down because QQQ Read More 

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