Emerging Markets Stocks ETF (EEM) Relative Strength Ratio (EEM/SPY) fell below its lows of the previous 8 years on 3/10/14, thereby reconfirming its preexisting long-term downtrend.
iShares MSCI BRIC Fund (BKF) Relative Strength Ratio (BKF/SPY) fell below its lows of the previous 8 years on 3/10/14, thereby reconfirming its preexisting long-term downtrend.
Copper, iPath DJ-UBS Copper TR Sub-Index ETN (JJC) price broke down below the lows of the previous 7 months on 3/10/14, thereby confirming its preexisting medium-term downtrend.
Industrial stock sector ETF Relative Strength Ratio (XLI/SPY) crossed back down below its 50-day SMA on 3/10/14, thereby turning systematically neutral (from bullish).
The S&P 500 Composite Index (SPX: 1,877.17, down 0.05%) absolute price opened lower and fell below the intraday lows of the previous 3 trading days by 10:42 am ET. A couple of recovery attempts clawed back most of that loss, and bounce in the final 2 hours erased nearly all of the early loss. SPX closed above the open and above the the midpoint of the day’s high-low range.
NYSE total volume fell 16% to a level 9% 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 Number of Daily Net New Highs on the NYSE (New Highs minus New Lows) fell to 107 from 399 on 3/7/14. These levels compare to peaks above 800 recorded in 2012 and 2013, when the S&P 500 was lower than it is now. So, this indicator still is diverging bearishly relative to last year’s levels.
Momentum oscillators RSI and MACD based on the S&P 500 Index remain weak relative to the price index itself. Both momentum oscillators failed to rise above their highs of 2013 as the S&P 500 price rose to a higher closing price high on 3/7/14. Previously, both fell to their lowest levels in more than 14 months on 2/3/14.
The minor trend of the stock market has been up since 2/3/14, but momentum divergences, generally low trading volume on up days, 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.
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Stock Market Indicators
The Dow Theory reconfirmed a Primary Tide Bull Market on 12/31/13 when the Dow-Jones Industrial Average and the Dow-Jones Transportation Average both closed at new closing price highs. The Averages have been diverging since 12/31/13, however, suggesting that all the parts of the stock market may not be in gear and pulling together in the same direction. If both Averages close below their lows of 2/3/14 without the Industrial Average confirming the March higher high of the Transportation Average, that could be a significant sell signal.
NASDAQ 100/S&P 500 Relative Strength Ratio (QQQ/SPY) remains systematically bullish but has lost momentum since rising to a 22-month high on 2/18/14. Any further relative underperformance by the NASDAQ 100 would turn the Relative Strength trend neutral. Absolute price of QQQ whipsawed back up above its 50-day SMA on 2/7/14, thereby turning systematically bullish (from neutral).
iShares MSCI BRIC Fund (BKF) Relative Strength Ratio (BKF/SPY) fell below its lows of the previous 8 years on 3/10/14, thereby reconfirming 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 fell below its lows of the previous 7 months on 2/3/14, thereby reconfirming its preexisting 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 3/10/14, thereby reconfirming 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. Absolute price of EEM fell below its lows of the previous 7 months on 2/3/14, thereby reconfirming its preexisting downtrend. Price 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 1/7/14 by crossing below its 50-day SMA. 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. On the other hand, Large Caps tend to outperform in bearish general market trends as investors seek the perceived relative stability and safety of large size.
The Small Cap Russell 2000 Index/Large Cap Relative Strength Ratio (IWM/SPY) whipsawed back up above its 50-day SMA on 2/20/14, thereby turning systematically bullish (from neutral). Absolute price crossed back up above its 50-day SMA on 2/13/14, thereby turning systematically bullish (from neutral).
The S&P Mid Cap 400/Large Cap Relative Strength Ratio (MDY/SPY) crossed back up above its 50-day SMA on 2/12/14, thereby turning systematically bullish (from neutral). Absolute price crossed back up above its 50-day SMA on 2/11/14, thereby turning systematically bullish (from neutral).
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Tangible Assets, Commodities
U.S. dollar ETF (UUP) price whipsawed back down below its 50-day SMA on 2/7/14, thereby turning systematically bearish (from neutral). UUP has whipsawed between systematically neutral and bearish 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 50-day SMA rose above the 200-day SMA on 3/4/14, thereby turning systematically bullish (from neutral). Previously, DBA had been in a cyclical bear market for nearly 3 years, from a peak at 35.58 on 3/4/11 to a low of 24.04 on 1/22/14.
Crude Oil, United States Oil ETF (USO) price whipsawed back above its 50-day SMA on 1/28/14, thereby turning systematically neutral (from bearish). Support 34.00, 32.53, 32.12, 30.79, 29.02, 26.28, and 22.74. Resistance 39.54, 39.64, 40.29, 41.38, 42.30, and 45.60.
Gold, SPDR Gold Shares ETF (GLD) price turned systematically neutral (from bearish) on 1/23/14 when it crossed above its 50-day SMA. The 50-day SMA is rising up toward the still-declining 200-day SMA, and the distance between the two SMAs is narrowing. Support: 127.15, 114.46, 113.08, and 102.28. Resistance: 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) turned systematically neutral (from bearish) on 1/13/14 when it crossed above its 50-day SMA. The 50-day SMA is rising up toward the still-declining 200-day SMA, and the distance between the two SMAs is narrowing. Previously, 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 turned systematically neutral (from bearish) on 2/5/14 when it crossed above its 50-day SMA. Support 21.30, 18.26, 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) turned systematically bearish (from neutral) on 2/26/14 when it crossed below its 50-day SMA. Longer term, SLV underperformed GLD substantially for 27 months from 4/28/11 to 7/30/13, but the trend has turned uncertain since 7/30/13.
Copper, iPath DJ-UBS Copper TR Sub-Index ETN (JJC) price broke down below the lows of the previous 7 months on 3/10/14, thereby confirming its preexisting medium-term downtrend. JJC price was in a persistent downtrend for more than 27 months from its peak of 61.69 on 2/14/11 to its low of 36.87 on 6/24/13, and that major downtrend could be resuming. “Dr. Copper” is widely accepted as one of the better indicators of investor confidence (or lack thereof) in the global industrial economy.
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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
6.01% , SHLD , SEARS HOLDINGS
2.71% , ADM , ARCHER DANIELS
3.19% , FB.O , Facebook, Inc., FB
1.90% , GCI , GANNETT
0.62% , MYY , Short 100% MidCap 400, MYY
2.44% , NYT , NY TIMES STK A
0.46% , WOR , WORTHINGTON INDS
0.93% , S , SPRINT NEXTEL
0.75% , VIA.O , VIACOM INC. (New)
0.39% , PNW , PINNACLE WEST
0.71% , VIAB.O , VIACOM STK B
0.15% , DGX , QUEST DIAG
0.43% , BBBY , BED BATH BEYOND
0.48% , MMC , MARSH & MCLENNAN
0.86% , TROW , T ROWE PRICE GP
0.40% , MET , METLIFE
0.11% , IEF , Bond, 10 Year Treasury, IEF
0.01% , SHV , Bond Treasury Short-Term iS, SHV
0.15% , RL , Polo Ralph Lauren
0.49% , KMX , CarMax
0.17% , PEG , PUBL SVC ENTER
0.02% , IWW , Value LargeCap Russell 3000, IWW
0.14% , SO , SOUTHERN
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Bearish Stocks: Falling Price and Rising Volume
Ranked by Price Change * Volume Change
% Price Change, Symbol, Name
-2.23% , ECH , Chile MSCI iS, ECH
-1.07% , PKB , Building & Construction, PKB
-0.97% , EPP , Pacific ex-Japan, EPP
-0.69% , ACWX , Global ex US ACWI iS, ACWX
-4.14% , KBH , KB HOME
-1.63% , IPG , INTERPUBLIC GRP
-1.14% , SIRI , Sirius Satellite
-2.43% , LEN , Lennar Corp. (LEN)
-1.28% , BA , BOEING
-1.37% , TXT , TEXTRON
-2.17% , DISH , EchoStar Communications
-2.98% , DHI , D.R. HORTON, DHI
-3.75% , CLF , CLIFFS NATURAL RESOURCES, CLF
-1.37% , X , US STEEL CORP
-0.76% , PBW , WilderHill Clean Energy PS, PBW
-1.82% , ININ , Interactive Intelligence ININ
-0.53% , VNQ , REIT VIPERs, VNQ
-0.31% , ERIC.O , LM Ericsson Telephone Company
-1.79% , LH , LAB CRP OF AMER
-1.04% , MCK , MCKESSON CORP
-0.18% , RZV , Value SmallCap S&P 600, RZV
-0.36% , TIF , TIFFANY
-2.94% , PGJ , China LargeCap Growth G D H USX PS, PGJ
-0.51% , VIS , Industrials VIPERs, VIS
-0.31% , EWS , Singapore Index, EWS
-0.58% , EA.O , ELECTRONIC ARTS
-1.12% , EWG , Germany Index, EWG
-0.69% , IBM , IBM
-0.10% , SPHQ.K , S&P 500 High Quality PS, SPHQ
-0.12% , IWB , LargeCap 1000 R, IWB
-0.62% , EFA , EAFE Index, EFA
-0.04% , IVW , Growth S&P 500/BARRA, IVW
-0.75% , BLK , BlackRock Inc.
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One-Day Ranking of Major ETFs, Ranked from Strongest to Weakest of the Day:
% Price Change, ETF Name, Symbol
1.13% , India PS, PIN
1.12% , India Earnings WTree, EPI
0.46% , Agriculture DB PS, DBA
0.42% , Health Care SPDR, XLV
0.37% , Biotech SPDR, XBI
0.21% , Bond, Muni S&P ATM-Free iS, MUB
0.21% , Energy VIPERs, VDE
0.20% , Energy DJ, IYE
0.20% , Spain Index, EWP
0.17% , Indonesia MV, IDX
0.16% , Energy SPDR, XLE
0.14% , Bond, 20+ Years Treasury, TLT
0.13% , Energy Global, IXC
0.12% , Capital Markets KWB ST, KCE
0.12% , Italy Index, EWI
0.11% , Bond, 10 Year Treasury, IEF
0.10% , Value LargeCap Dynamic PS, PWV
0.09% , Consumer Staples SPDR, XLP
0.09% , QQQ Nasdaq 100 Trust, QQQ
0.08% , LargeCap Blend S&P 100, OEF
0.08% , Financial Services DJ, IYG
0.08% , Bear, Short S&P 500, SH
0.06% , Belgium Index, EWK
0.04% , Financial SPDR, XLF
0.04% , Bond, TIPS U.S. Treasury iS, TIP
0.03% , Bond Ex-US Treas, BWX
0.03% , Gold Shares S.T., GLD
0.03% , Preferred Stock iS, PFF
0.01% , Microcap Russell, IWC
0.01% , Bond, 1-3 Year Treasury, SHY
0.01% , LargeCap Value S&P 500 iS, IVE
0.01% , Bond, High Yield Corp iBoxx iS, HYG
0.01% , Bond Treasury Short-Term iS, SHV
0.00% , Financial Preferred, PGF
0.00% , Dividend High Yield Equity PS, PEY
0.00% , Bond, Intermediate US Aggregate iS, AGG
-0.01% , Financial DJ US, IYF
-0.02% , Financials VIPERs, VFH
-0.03% , Canada Index, EWC
-0.04% , LargeCap Growth S&P 500 iS, IVW
-0.04% , LargeCap Blend S&P 500 iS, IVV
-0.05% , Bond, High-Yield Junk, JNK
-0.05% , S&P 500 SPDRs LargeCap Blend, SPY
-0.06% , Growth VIPERs, VUG
-0.07% , Dividend Appreciation Vipers, VIG
-0.07% , LargeCap VIPERs, VV
-0.07% , Blend Total Market VIPERs, VTI
-0.08% , Value VIPERs, VTV
-0.08% , Utilities VIPERs, VPU
-0.08% , Materials SPDR, XLB
-0.09% , LargeCap Growth Russell 1000 iS, IWF
-0.11% , Sweden Index, EWD
-0.11% , Dividend U.S. DJ iS, DVY
-0.11% , Energy & Nat Res iS GS, IGE
-0.12% , LargeCap Blend Russell 1000 iS, IWB
-0.13% , LargeCap Value Russell 1000 iS, IWD
-0.13% , Technology DJ US, IYW
-0.13% , LargeCap Blend Russell 3000 iS, IWV
-0.14% , France Index, EWQ
-0.14% , Basic Materials DJ US, IYM
-0.15% , Dividend SPDR, SDY
-0.16% , Bond, Long-Term Corp iBoxx iS, LQD
-0.16% , Technology SPDR, XLK
-0.17% , SmallCap Value S&P 600 iS, IJS
-0.17% , Semiconductor iS IGW, SOXX
-0.17% , Transportation Av DJ, IYT
-0.19% , SmallCap Blend S&P 600 iS, IJR
-0.20% , SmallCap Value Russell 2000 iS, IWN
-0.20% , Bond, Emerging Mkt JPM iS, EMB
-0.20% , Dividend ex-U.S. DJ iS, IDV
-0.21% , DIAMONDS (DJIA), DIA
-0.21% , SmallCap Growth S&P 600 iS, IJT
-0.23% , LargeCap Blend S&P=Weight R, RSP
-0.23% , Switzerland Index, EWL
-0.25% , Info Tech VIPERs, VGT
-0.25% , Utilities SPDR, XLU
-0.27% , Consumer Discretionary SPDR, XLY
-0.27% , Value SmallCap VIPERS, VBR
-0.27% , Dividend International, PID
-0.28% , Taiwan Index, EWT
-0.31% , Telecom DJ US, IYZ
-0.31% , Singapore Index, EWS
-0.32% , Global 100, IOO
-0.33% , Growth MidCap Russell, IWP
-0.33% , SmallCap Blend Russell 2000 iS, IWM
-0.34% , Value MidCap Russell, IWS
-0.34% , Global LargeCap Blend MSCI iS, ACWI
-0.35% , Silver Trust iS, SLV
-0.36% , MidCap Russell, IWR
-0.37% , Real Estate US DJ iS, IYR
-0.43% , Small Cap VIPERs, VB
-0.43% , SmallCap Growth Russell 2000 iS, IWO
-0.43% , Japan Index, EWJ
-0.43% , Industrial SPDR, XLI
-0.48% , EMU Europe Index, EZU
-0.48% , Water Resources, PHO
-0.50% , MidCap Value S&P 400 iS, IJJ
-0.50% , Realty Cohen & Steers, ICF
-0.53% , REIT VIPERs, VNQ
-0.55% , Growth EAFE MSCI, EFG
-0.55% , MidCap S&P 400 SPDRs, MDY
-0.55% , Networking, IGN
-0.55% , MidCap Blend S&P 400 iS, IJH
-0.57% , MidCap Growth S&P 400 iS, IJK
-0.57% , Value EAFE MSCI, EFV
-0.59% , Thailand MSCI iS, THD
-0.59% , Emerging VIPERs, VWO
-0.59% , REIT Wilshire, RWR
-0.60% , Hong Kong Index, EWH
-0.60% , SmallCap Blend EAFE MSCI iS, SCZ
-0.61% , Growth SmallCap VIPERs, VBK
-0.62% , Foreign LargeCap EAFE MSCI iS, EFA
-0.63% , Semiconductor SPDR, XSD
-0.64% , Pacific VIPERs, VPL
-0.64% , Europe 350 S&P Index, IEV
-0.68% , Emerging Markets MSCI iS, EEM
-0.69% , Global ex U.S. LargeCap Blend, ACWX
-0.72% , European VIPERs, VGK
-0.74% , Mexico Index, EWW
-0.74% , South Africa Index, EZA
-0.76% , WilderHill Clean Energy PS, PBW
-0.78% , Malaysia Index, EWM
-0.84% , Commodity Tracking, DBC
-0.94% , Austria Index, EWO
-0.97% , Pacific ex-Japan, EPP
-0.98% , Homebuilders SPDR, XHB
-1.00% , Russia MV, RSX
-1.00% , Netherlands Index, EWN
-1.11% , Turkey MSCI iS, TUR
-1.12% , Germany Index, EWG
-1.19% , United Kingdom Index, EWU
-1.22% , South Korea Index, EWY
-1.26% , Australia Index, EWA
-1.27% , Emerging 50 BLDRS, ADRE
-1.29% , Oil Fund PowerShares, DBO
-1.31% , Oil, Crude, U.S. Oil Fund, USO
-1.34% , Latin Am 40, ILF
-1.36% , Frontier Markets Guggenheim , FRN
-1.57% , China 25 iS, FXI
-1.71% , Brazil Index, EWZ
-1.78% , Metals & Mining SPDR, XME
-2.23% , Chile MSCI iS, ECH
-2.94% , China LargeCap Growth G D H USX PS, PGJ
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The S&P 500 Composite Potential Resistance
1,883.57, high of 3/9/2014
The S&P 500 Composite Potential Support
1834.44, low of 3/3/2014
1827.83, 50-day SMA
1815.52, low of 1/13/2014
1813.55, high of 11/29/2013
1737.92, low of 2/5/2014
1733.40, 200-day SMA
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
1676.03, 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
