iShares MSCI BRIC Fund (BKF) Relative Strength Ratio (BKF/SPY) fell below its lows of the previous 5 months on 12/26/13, thereby confirming its preexisting long-term downtrend.
Emerging Markets Stocks ETF (EEM) Relative Strength Ratio (EEM/SPY) fell below its lows of the previous 8 years on 12/26/13, thereby confirming its preexisting long-term downtrend.
The S&P 500 Composite Index (SPX: 1,841.40, down 0.03%) absolute price opened higher on Friday but early strength quickly fizzled. The S&P 500 closed below the open and below the midpoint of the day’s high-low range.
NYSE total volume rose 3% to a level 42% below its 200-day SMA. Generally, rising volume confirms the direction (up or down) of a price move, but falling volume may indicate diminishing power behind a price trend, which can suggest a price reversal ahead.
The Cumulative Up-Down Volume Line on the NYSE rose to a new high on Friday, thereby reconfirming its preexisting major price uptrend.
The Cumulative Daily Advance-Decline Line on the NYSE also rose to a new high on Friday, thereby reconfirming its preexisting major price uptrend.
The Number of Daily Net New Highs on the NYSE (New Highs minus New Lows) turned upward since 12/12/13, but it remains below its previous highs previous highs of 2012 and 2013, thereby diverging bearishly compared to higher highs for the large-capitalization stock price indexes.
Momentum oscillators RSI and MACD based on the S&P 500 turned upward since recent lows on 12/13/13 and 12/17/13, but both remained below their previous 2013 highs as the S&P 500 price rose to higher price highs.
Momentum divergences, persistently low trading volume, and excessive bullish sentiment remain challenges to a sustainable upside trend. On the other hand, the bullish case appears to rest primarily on continuation of central banks’ highly-accommodative monetary policies and hopes for faster economic recovery.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Stock Market Indicators
The Dow Theory last reconfirmed a Primary Tide Bull Market on 12/26/13 when the Dow-Jones Industrial Average and the Dow-Jones Transportation Average both closed at new closing price highs.
NASDAQ 100/S&P 500 Relative Strength Ratio (QQQ/SPY) rose above its highest levels of the previous 15 months on 12/23/13, thereby reconfirming its preexisting long-term uptrend. QQQ/SPY rose above its 50-day SMA on 11/26/13, thereby turning systematically bullish (from neutral). Absolute price rose above its 50-day SMA on 10/10/13, thereby turning systematically bullish (from neutral).
iShares MSCI BRIC Fund (BKF) Relative Strength Ratio (BKF/SPY) fell below its lows of the previous 5 months on 12/26/13, thereby confirming its preexisting long-term downtrend. BKF/SPY turned systematically bearish (from neutral) on 10/31/13 by crossing below its 50-day SMA. The 50-day SMA remains below the 200-day SMA. BKF/SPY has underperformed since it peaked on 10/14/2010. Absolute price of BKF also fell below its lows of the previous 5 weeks on 12/19/13, thereby confirming its preexisting short-term downtrend. Price peaked at 42.29 on 2/1/13, fell to a 20-month low at 32.62 on 6/24/13, and remains stuck in that trading range.
Emerging Markets Stocks ETF (EEM) Relative Strength Ratio (EEM/SPY) fell below its lows of the previous 8 years on 12/26/13, thereby confirming its preexisting long-term downtrend. EEM/SPY turned systematically bearish (from neutral) on 10/31/13 by crossing below its 50-day SMA. Long term, EEM/SPY has underperformed since the ratio peaked on 10/14/2010. This year, absolute price of EEM peaked at 45.34 on 1/2/13, fell to a 19-month low of 36.16 on 6/24/13, and remains stuck in that trading range.
Foreign Stocks ETF (EFA) Relative Strength Ratio (EFA/SPY) fell below its lowest levels of the previous 5 months on 12/18/13, thereby reconfirming its preexisting major downtrend. For nearly 6 years, from 11/27/07 to 7/9/13, EFA/SPY substantially underperformed, and that secular downtrend may still be in effect.
The Largest Cap S&P 100/S&P 500 Relative Strength Ratio (OEF/SPY) turned systematically bearish (from neutral) on 12/13/13 by falling back down below its 50-day SMA. Large Caps tend to outperform in bearish general market trends as investors seek the perceived relative stability and safety of large size. On the other hand, Large Caps tend to underperform Mid Caps and Small Caps in bullish general market trends as investors seek greater potential returns in more volatile, smaller stocks.
The Small Cap Russell 2000 Index/Large Cap Relative Strength Ratio (IWM/SPY) rose above its 50-day SMA on 12/20/13, thereby turning systematically bullish (from neutral). Absolute price rose to a new high on 12/26/13 and remains systematically bullish.
The S&P Mid Cap 400/Large Cap Relative Strength Ratio (MDY/SPY) turned systematically neutral (from bullish) on 11/5/13 by falling below its 50-day SMA. Absolute price rose to a new high on 12/26/13 and remains systematically bullish.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tangible Assets, Commodities
U.S. dollar ETF (UUP) price fell below its lows of the previous 6 weeks on 12/11/13, thereby confirming its preexisting bearish trend. UUP has remained systematically bearish most of the time since 9/12/13, when the 50-day SMA crossed down below the 200-day SMA. Longer term, UUP has been consolidating secular trend losses since bottoming at 20.84 on 5/4/11. Support 21.32, 21.07, and 20.84. Resistance 21.96, 22.34, 22.98, 23.14, 23.52, 25.84, 27.19, and 28.97.
Agriculture, PowerShares DB Agriculture Fund ETF (DBA) price fell below its lows of the previous 4 months on 12/17/13, thereby confirming its preexisting bearish trend. DBA turned systematically bearish (from neutral) on 10/29/13, when it fell below its 50-day SMA. DBA price was in a cyclical bear market for 29 months from a peak at 35.58 on 3/4/11 to a low of 24.36 on 8/2/13.
Crude Oil, United States Oil ETF (USO) price is systematically neutral. USO currently is above both its 50-day SMA and 200-day SMA, but the 50-day SMA is below the 200-day SMA. Support 32.94, 32.53, 32.12, 30.79, 29.02, 26.28, and 22.74. Resistance 37.59, 39.54, 39.64, 40.29, 41.38, 42.30, and 45.60.
Gold, SPDR Gold Shares ETF (GLD) price fell below its lows of the previous 3 years on 12/19/13, thereby reconfirming its preexisting bearish trend. GLD price fell below its 50-day SMA on 10/31/13, thereby turning systematically bearish again (from neutral). Support: 114.50, 113.08, and 102.28. Resistance: 122.32, 131.44, 137.62, 143.43, 149.44, 153.85, 156.80, 164.40, 166.94, 170.01, 174.07, 175.46, 177.40, and 185.85.
Gold Mining Stocks ETF/Gold Shares ETF Relative Strength Ratio (GDX/GLD) fell below its lows of the previous 7 years on 12/23/13, thereby reconfirming its preexisting major long-term downtrend. GDX/GLD has stayed systematically bearish most of the time since absolute price peaked at 66.98 on 9/9/11.
Silver, iShares Silver Trust ETF (SLV) price fell below its lows of the previous 5 months on 12/3/13, thereby reconfirming its preexisting bearish trend. SLV price fell below its 50-day SMA on 10/31/13, thereby turning systematically bearish again (from neutral). Support 18.28, 17.75, 16.73, 14.37, 12.27, 11.64, and 8.45. Resistance: 22.23, 23.84, 25.34, 27.14, 27.35, 28.50, 28.61, 29.73, 31.41, 32.72, 33.31, 34.08, 36.44, 40.23, 41.49, 42.30, 42.78, 44.71, and 48.35.
Silver/Gold ETFs Ratio (SLV/GLD) rose above its 50-day SMA on 12/26/13, thereby turning systematically neutral (from bearish). Longer term, SLV/GLD fell below its lows of the previous 4 months on 12/3/13, and SLV underperformed GLD substantially for more than 2 years from 4/28/11 to 7/30/13.
Copper, iPath DJ-UBS Copper TR Sub-Index ETN (JJC) price rose above its 50-day SMA on 12/10/13, thereby turning systematically neutral (from bearish). Longer term, JJC price was in a persistent downtrend for more than 2 years from its peak of 61.69 on 2/14/11 to its low of 36.87 on 6/24/13. “Dr. Copper” is widely accepted as one of the better indicators of investor confidence (or lack thereof) in the global industrial economy.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Spotlight on event stocks: Here is a stock screen I designed to pick out potential event stocks, both Bullish and Bearish. Sometimes, stocks with large changes in price and volume are later revealed to be deal stocks or are the subject of some other extraordinary events, positive or negative.
Bullish Stocks: Rising Price and Rising Volume
Ranked by Price Change * Volume Change
% Price Change, Symbol, Name
8.33% , S , SPRINT NEXTEL
6.08% , CLF , CLIFFS NATURAL RESOURCES, CLF
0.97% , EWL , Switzerland Index, EWL
2.19% , SIAL , SIGMA ALDRICH
2.75% , NBR , NABORS
1.45% , TYC , TYCO INTL
3.88% , BIDU , Baidu, Inc., BIDU
2.25% , FE , FIRSTENERGY
2.93% , XME , Metals & Mining SPDR, XME
1.24% , GRMN , GARMIN LTD
0.76% , ACWX , Global ex US ACWI iS, ACWX
1.13% , TXT , TEXTRON
1.08% , ERIC.O , LM Ericsson Telephone Company
1.81% , RDC , ROWAN COMPANIES
0.56% , VOX , Telecom Services VIPERs, VOX
2.20% , SIL , Silver Miners Global X, SIL
0.40% , DBO , Oil Fund PowerShares, DBO
0.98% , IGN , Networking, IGN
1.01% , EWS , Singapore Index, EWS
2.12% , CIEN.O , CIENA
0.31% , HMA , HEALTH MGMT STK A
0.26% , IXC , Energy Global, IXC
0.51% , EFA , EAFE Index, EFA
0.23% , PHO , Water Resources, PHO
0.30% , IDU , Utilities DJ, IDU
0.65% , NUE , NUCOR
0.08% , SOXX , Semiconductor iS IGW, SOXX
1.29% , EPU , Peru MSCI iS, EPU
0.49% , IGE , Energy & Nat Res iS GS, IGE
0.50% , EWQ , France Index, EWQ
0.48% , VAW , Materials VIPERs, VAW
1.18% , PGJ , China LargeCap Growth G D H USX PS, PGJ
0.19% , VIA.O , VIACOM INC. (New)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Bearish Stocks: Falling Price and Rising Volume
Ranked by Price Change * Volume Change
% Price Change, Symbol, Name
-1.73% , WFM.O , Whole Foods Market Inc
-2.50% , NFLX , Netflix, NFLX
-0.48% , MJN , Mead Johnson Nutrition
-0.38% , IYC , Consumer Cyclical DJ, IYC
-2.23% , TUR , Turkey MSCI iS, TUR
-0.17% , IYT , Transportation Av DJ, IYT
-0.28% , IYW , Technology DJ US, IYW
-0.12% , EMB , Bond EmrgMkt JPM iS, EMB
-0.30% , VCR , Consumer D. VIPERs, VCR
-0.10% , VIS , Industrials VIPERs, VIS
-0.18% , ONEQ , Growth LargeCap NASDAQ Fidelity, ONEQ
-0.16% , PFF , Preferred Stock iS, PFF
-0.11% , IWC , Microcap Russell, IWC
-0.07% , IWB , LargeCap 1000 R, IWB
-0.07% , DDM , Ultra Dow30 Double, DDM
-0.08% , MUB , Bond Muni ATM-Free S&P iS, MUB
-0.04% , SH , Short 100% S&P 500, SH
-0.05% , JKD , LargeCap Blend Core iS M, JKD
-0.09% , LQD , Bond, Corp, LQD
-0.05% , VHT , Health Care VIPERs, VHT
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
One-Day Ranking of Major ETFs, Ranked from Strongest to Weakest of the Day:
% Price Change, ETF Name, Symbol
2.93% , Metals & Mining SPDR, XME
2.36% , South Korea Index, EWY
2.01% , Malaysia Index, EWM
1.61% , Brazil Index, EWZ
1.58% , Chile MSCI iS, ECH
1.58% , Taiwan Index, EWT
1.56% , Indonesia MV, IDX
1.55% , Emerging Markets MSCI iS, EEM
1.49% , China 25 iS, FXI
1.46% , Latin Am 40, ILF
1.31% , Silver Trust iS, SLV
1.28% , Emerging 50 BLDRS, ADRE
1.19% , Emerging VIPERs, VWO
1.18% , China LargeCap Growth G D H USX PS, PGJ
1.01% , Singapore Index, EWS
0.98% , Networking, IGN
0.97% , Switzerland Index, EWL
0.96% , WilderHill Clean Energy PS, PBW
0.94% , India Earnings WTree, EPI
0.93% , India PS, PIN
0.88% , Russia MV, RSX
0.87% , Frontier Markets Guggenheim , FRN
0.79% , Mexico Index, EWW
0.76% , Global ex U.S. LargeCap Blend, ACWX
0.73% , Pacific VIPERs, VPL
0.64% , Telecom DJ US, IYZ
0.58% , United Kingdom Index, EWU
0.57% , Energy VIPERs, VDE
0.56% , SmallCap Blend EAFE MSCI iS, SCZ
0.54% , Growth EAFE MSCI, EFG
0.54% , Energy DJ, IYE
0.53% , European VIPERs, VGK
0.53% , Europe 350 S&P Index, IEV
0.53% , Oil, Crude, U.S. Oil Fund, USO
0.51% , Foreign LargeCap EAFE MSCI iS, EFA
0.50% , Japan Index, EWJ
0.50% , France Index, EWQ
0.49% , Energy SPDR, XLE
0.49% , Energy & Nat Res iS GS, IGE
0.45% , Basic Materials DJ US, IYM
0.43% , Belgium Index, EWK
0.43% , Global 100, IOO
0.43% , Value EAFE MSCI, EFV
0.40% , Utilities SPDR, XLU
0.40% , Oil Fund PowerShares, DBO
0.39% , Hong Kong Index, EWH
0.36% , Thailand MSCI iS, THD
0.35% , Netherlands Index, EWN
0.34% , EMU Europe Index, EZU
0.33% , Dividend International, PID
0.33% , Gold Shares S.T., GLD
0.32% , Global LargeCap Blend MSCI iS, ACWI
0.31% , Utilities VIPERs, VPU
0.31% , Sweden Index, EWD
0.31% , Materials SPDR, XLB
0.27% , Commodity Tracking, DBC
0.26% , Energy Global, IXC
0.25% , Germany Index, EWG
0.25% , Dividend ex-U.S. DJ iS, IDV
0.24% , Agriculture DB PS, DBA
0.23% , Consumer Staples SPDR, XLP
0.23% , Water Resources, PHO
0.23% , Dividend U.S. DJ iS, DVY
0.22% , REIT VIPERs, VNQ
0.19% , Italy Index, EWI
0.17% , Dividend High Yield Equity PS, PEY
0.16% , MidCap Value S&P 400 iS, IJJ
0.14% , Value VIPERs, VTV
0.14% , LargeCap Value S&P 500 iS, IVE
0.13% , Real Estate US DJ iS, IYR
0.12% , Dividend SPDR, SDY
0.11% , Dividend Appreciation Vipers, VIG
0.11% , LargeCap Value Russell 1000 iS, IWD
0.10% , Spain Index, EWP
0.08% , Semiconductor iS IGW, SOXX
0.08% , MidCap S&P 400 SPDRs, MDY
0.08% , Value MidCap Russell, IWS
0.06% , Value SmallCap VIPERS, VBR
0.05% , Bond, 1-3 Year Treasury, SHY
0.04% , Bond, Intermediate US Aggregate iS, AGG
0.04% , MidCap Blend S&P 400 iS, IJH
0.04% , Financial Services DJ, IYG
0.03% , South Africa Index, EZA
0.03% , Homebuilders SPDR, XHB
0.03% , LargeCap Blend S&P=Weight R, RSP
0.03% , REIT Wilshire, RWR
0.03% , SmallCap Value S&P 600 iS, IJS
0.01% , DIAMONDS (DJIA), DIA
0.00% , LargeCap VIPERs, VV
0.00% , LargeCap Blend S&P 100, OEF
0.00% , Financial Preferred, PGF
0.00% , Financial DJ US, IYF
0.00% , Bond Treasury Short-Term iS, SHV
-0.01% , S&P 500 SPDRs LargeCap Blend, SPY
-0.01% , SmallCap Value Russell 2000 iS, IWN
-0.01% , Bond, High Yield Corp iBoxx iS, HYG
-0.01% , Realty Cohen & Steers, ICF
-0.02% , Semiconductor SPDR, XSD
-0.02% , Small Cap VIPERs, VB
-0.02% , LargeCap Blend S&P 500 iS, IVV
-0.04% , Value LargeCap Dynamic PS, PWV
-0.04% , Bear, Short S&P 500, SH
-0.05% , Financials VIPERs, VFH
-0.05% , LargeCap Blend Russell 3000 iS, IWV
-0.05% , Financial SPDR, XLF
-0.05% , Bond, TIPS U.S. Treasury iS, TIP
-0.06% , Bond, 10 Year Treasury, IEF
-0.06% , SmallCap Blend Russell 2000 iS, IWM
-0.06% , Blend Total Market VIPERs, VTI
-0.07% , LargeCap Blend Russell 1000 iS, IWB
-0.08% , Bond, Muni S&P ATM-Free iS, MUB
-0.08% , MidCap Growth S&P 400 iS, IJK
-0.08% , MidCap Russell, IWR
-0.08% , Technology SPDR, XLK
-0.09% , Bond, Long-Term Corp iBoxx iS, LQD
-0.09% , Health Care SPDR, XLV
-0.09% , LargeCap Growth Russell 1000 iS, IWF
-0.11% , Microcap Russell, IWC
-0.11% , Growth SmallCap VIPERs, VBK
-0.11% , Pacific ex-Japan, EPP
-0.12% , Industrial SPDR, XLI
-0.12% , Growth MidCap Russell, IWP
-0.12% , Bond, Emerging Mkt JPM iS, EMB
-0.13% , SmallCap Blend S&P 600 iS, IJR
-0.15% , Austria Index, EWO
-0.15% , Growth VIPERs, VUG
-0.16% , Preferred Stock iS, PFF
-0.17% , Transportation Av DJ, IYT
-0.19% , LargeCap Growth S&P 500 iS, IVW
-0.20% , Info Tech VIPERs, VGT
-0.22% , SmallCap Growth Russell 2000 iS, IWO
-0.25% , QQQ Nasdaq 100 Trust, QQQ
-0.28% , Technology DJ US, IYW
-0.28% , Bond, 20+ Years Treasury, TLT
-0.31% , SmallCap Growth S&P 600 iS, IJT
-0.38% , Capital Markets KWB ST, KCE
-0.45% , Australia Index, EWA
-0.47% , Consumer Discretionary SPDR, XLY
-0.49% , Bond, High-Yield Junk, JNK
-0.50% , Bond Ex-US Treas, BWX
-0.72% , Canada Index, EWC
-0.93% , Biotech SPDR, XBI
-2.23% , Turkey MSCI iS, TUR
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The S&P 500 Composite Potential Resistance
none
The S&P 500 Composite Potential Support
1813.55, high of 11/29/2013
1784.68, 50-day SMA
1767.99, low of 12/18/2013
1760.64, low of 11/13/2013
1746.20, low of 11/7/2013
1740.50, low of 10/23/2013
1729.86, high of 9/19/2013
1711.57, high of 10/15/2013
1709.67, high of 8/2/2013
1703.85, high of 9/26/2013
1700.18, high of 8/8/2013
1698.78, high of 7/23/2013
1696.81, high of 8/13/2013
1696.55, high of 10/1/2013
1695.93, low of 10/15/2013
1687.18, high of 5/22/2013
1687.11, low of 9/27/2013
1676.40, 200-day SMA
1676.03, low of 7/26/2013
1674.99, low of 9/30/2013
1672.40, high of 9/9/2013
1671.84, low of 7/16/2013
1670.36, low of 10/3/2013
1669.51, high of 8/26/2013
1654.19, high of 6/18/2013
1654.18, high of 7/9/2013
1652.61, low of 8/16/2013
1646.47, low of 10/9/2013
1629.05, low of 8/27/2013
1560.33, low of 6/24/2013
1536.03, low of 4/18/2013
1530.94, high of 2/19/2013
1485.01, low of 2/26/2013
1474.51, high of 9/14/2012
1451.64, low on 1/8/2013
1448.00, high of 12/19/2012
1440.24, high of 5/19/2008
1439.15, high of 9/12/2012
1438.59, high of 12/12/2012
1434.27, high of 11/2/2012
1432.82, low of 12/20/2012
1430.53, low of 9/26/2012
1426.76, low of 12/12/2012
1425.53, low of 10/12/2012
1423.73, high of 12/3/2012
1422.58, low of 12/21/2012
1422.38, high of 4/2/2012
1422.06, low of 10/22/2012
1421.12, high of 10/25/2012
1420.34, high of 12/7/2012
1419.70, high of 11/29/2012
1418.71, high of 8/17/2012
1415.32, high of 5/1/2012
1409.16, high of 11/23/2012
1403.28, low of 10/26/12
1401.58, low of 12/28/12
1398.11, low of 12/31/2012
1397.68, low of 11/26/2012
1396.56, low of 9/4/2012
1391.04, low of 8/6/2012
1388.71, low of 5/3/2012
1385.43, low of 11/28/2012
1380.39, high of 7/19/2012
1374.81, high of 7/3/2012
1370.58, high of 5/2/2011
1363.49, high of 6/19/2012
1357.38, low of 4/10/2012
1343.35, low of 11/16/2012
1340.03, low of 3/6/2012
1335.52, high of 6/11/2012
1334.93, high of 5/31/2012
1329.24, low of 7/24/2012
1329.05, high of 6/7/2012
1328.49, high of 5/22/2012
1325.41, low of 7/12/2012
1306.62, low of 6/12/2012
1291.98, low of 5/18/2012
1266.74, low of 6/4/2012
1265.26, low of 1/5/2012
1262.30, low of 12/27/2011
1244.80, low of 12/7/2011
1239.73, low of 12/1/2011
1234.81, low of 11/3/2011
1231.04, high of 12/16/2011
1226.64, low of 11/9/2011
1224.57, high of 12/19/2011
1215.20, low of 12/16/2011
1202.37, low of 12/19/2011
1158.66, low of 11/25/2011
1074.77, low of 10/4/2011
1010.91, low of 7/1/2010
991.97, low of 9/2/2009
978.51, low of 8/17/2009
956.23, high of 6/11/2009
869.32, low of 7/8/2009
666.79, intraday low of 3/6/2009
