The Dow-Jones Industrial Average whipsawed back up above its 50-day SMAs on 9/11/13, thereby turning systematically bullish again.
The S&P Mid Cap 400/Large Cap Relative Strength Ratio (MDY/SPY) whipsawed back down below its 50-day SMA on 9/11/13, thereby turning systematically neutral (from bullish).
Technology (XLK) stock sector ETF Relative Strength Ratio (XLK/SPY) turned systematically bearish (from neutral) on 9/11/13 when XLK/SPY crossed down below its 50-day SMA.
On Wednesday, U.S. stock market price indexes eased modestly lower in the first hour before reversing to the upside. Price rose until 2:10 p.m., dipped modestly lower, then sprinted upward in the final 5 minutes to close at their highest levels of the day.
The S&P 500 Composite Index (SPX: 1,689.13, up 0.31%) closed above the open, above the midpoint of the day’s high-low range, above the highest highs of the previous 18 trading days, and above its widely-watched 50-day and 200-day SMAs. It was another bullish day–but this time falling volume failed to confirm the price strength.
NYSE total volume fell 17% 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.
Short-term price momentum still looks bullish, but for the medium term, SPX remains below its highs of July and August, suggesting neutral/sideways price momentum. A large number of technical indicators agree that the stock market has lost significant upside momentum in recent months.
The Cumulative Up-Down Volume Line on the NYSE and the Cumulative Daily Advance-Decline Line on the NYSE both rose again on Wednesday. Both remain systematically bullish above their 50-day and 200-day SMAs.
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Stock Market Indicators
The Dow Theory reconfirmed a Primary Tide Bull Market on 8/1/13, when the Dow-Jones Industrial Average and the Dow-Jones Transportation Average both closed at new closing price highs. Apart from the strict form of the Dow Theory, the Transportation Average whipsawed up above its 50-day SMAs on 8/27/13 and the Industrial Average whipsawed up above its 50-day SMAs on 9/11/13, so both Averages are systematically bullish again.
NASDAQ 100/S&P 500 Relative Strength Ratio (QQQ/SPY) turned systematically bullish on 8/26/13, when the 50-day SMA crossed above the 200-day SMA. QQQ/SPY rose above its highest levels of the past 6 months on 8/29/13. Absolute price of QQQ rose above its 50-day SMA on 7/5/13, thereby turning systematically bullish (from neutral).
iShares MSCI BRIC Fund (BKF) Relative Strength Ratio (BKF/SPY) whipsawed back up above its 50-day SMA on 8/30/13, thereby turning systematically neutral (from bearish). The 50-day SMA remains far below the 200-day SMA, and BKF/SPY fell below the lows of the previous 4 years on 8/7/13. BKF/SPY has underperformed since it peaked on 10/14/2010. Absolute price of BKF peaked at 42.29 on 2/1/13, fell to a 20-month low at 32.62 on 6/24/13, and whipsawed back up above its 50-day SMA on 9/4/13, thereby turning systematically neutral (from bearish).
Emerging Markets Stocks ETF (EEM) Relative Strength Ratio (EEM/SPY) whipsawed back up above its 50-day SMA on 9/4/13, thereby turning systematically neutral (from bearish). The 50-day SMA remains far below the 200-day SMA, and EEM/SPY fell below the lows of the previous 4 years on 7/10/13. 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 whipsawed back up above its 50-day SMA on 9/4/13, thereby turning systematically neutral (from bearish).
Foreign Stocks ETF (EFA) Relative Strength Ratio (EFA/SPY) whipsawed back up above its 50-day SMA on 9/3/13, thereby turning systematically neutral (from bearish). The 50-day SMA remains below the 200-day SMA. For nearly 6 years, from 11/27/07 to 7/9/13, EFA/SPY underperformed. This year, absolute price of EFA peaked at 64.14 on 5/22/13, fell to a 6-month low at 56.44 on 6/24/13, and whipsawed back up above its 50-day SMA on 9/3/13, thereby turning systematically bullish (from neutral).
The Largest Cap S&P 100/S&P 500 Relative Strength Ratio (OEF/SPY) whipsawed back down below its 50-day SMA on 8/20/13, thereby turning systematically bearish (from neutral). 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) is systematically bullish. IWM/SPY whipsawed back up above its 50-day SMA on 9/3/13, thereby turning systematically bullish (from neutral). Absolute price whipsawed around its 50-day SMA since 8/19/13 and is currently systematically bullish above the 50-day SMA.
The S&P Mid Cap 400/Large Cap Relative Strength Ratio (MDY/SPY) is systematically neutral. MDY /SPY whipsawed back down below its 50-day SMA on 9/11/13, thereby turning systematically neutral (from bullish). Absolute price whipsawed around its 50-day SMA since 8/19/13 and is currently systematically bullish above the 50-day SMA.
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Tangible Assets, Commodities
U.S. dollar ETF (UUP) whipsawed back down below its 50-day SMA on 9/6/13, thereby turning systematically neutral again (from bullish). Longer term, UUP has been consolidating secular trend losses since bottoming at 20.84 on 5/4/11. Support 21.82, 21.53, 21.07, and 20.84. Resistance 22.98, 23.14, 23.52, 25.84, 27.19, and 28.97.
Agriculture, PowerShares DB Agriculture Fund ETF (DBA) price rose above its highs of the previous 9 weeks and whipsawed above its 50-day SMA on 8/26/13, thereby turning systematically neutral (from bearish). Longer term, however, DBA fell below its lows of the past 3 years on 8/2/13 and has been trending down since peaking on 3/4/11.
Crude Oil, United States Oil ETF (USO) price rose further above its highs of the previous 15 months on 9/6/13, again confirming its preexisting systematically bullish trend. Support 38.14, 36.99, 36.35, 32.53, 32.12, 30.79, 29.02, 26.28, and 22.74. Resistance 39.64, 40.29, 41.38, 42.30, and 45.60.
Gold, SPDR Gold Shares ETF (GLD) price trend turned systematically neutral (from bearish) on 8/12/13 when price rose above its 50-day SMA. The 50-day SMA remains far below the 200-day SMA, however, so GLD is far from turning systematically bullish. Support: 123.55, 122.73, 114.68, 113.08 and 102.28. Resistance: 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) has stayed systematically bearish most of the time since 12/27/12, when the 50-day SMA crossed below the 200-day SMA. Longer term, GDX/GLD has remained mostly bearish for more than 6 years, since 9/5/06.
Silver, iShares Silver Trust ETF (SLV) price rose above its highs of the previous 16 weeks on 8/27/13. SLV price trend turned systematically neutral (from bearish) on 8/12/13 when price rose above its 50-day SMA. The 50-day SMA remains well below the 200-day SMA, however, so SLV is far from turning systematically bullish. Support 18.71, 17.75, 16.73, 14.37, 12.27, 11.64, and 8.45. Resistance: 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 highs of the previous 19 weeks on 8/26/13. SLV/GLD crossed back above its 50-day SMA on 8/9/13, thereby turning systematically neutral (from bearish). SLV underperformed GLD for more than 2 years from 4/28/11 to 7/30/13.
Copper, iPath DJ-UBS Copper TR Sub-Index ETN (JJC) price crossed back above its 50-day SMA on 8/8/13, thereby turning systematically neutral (from bearish). The 50-day SMA remains well below the 200-day SMA, however, so JJC is far from turning systematically bullish. 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.
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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
3.99% , JNY , JONES APPAREL
0.41% , IXC , Energy Global, IXC
1.73% , VIA.O , VIACOM INC. (New)
3.24% , MAR , MARRIOTT INTL STK A
3.00% , QLGC , QLOGIC
4.77% , BIDU , Baidu, Inc., BIDU
2.46% , ACE , ACE
2.04% , PGR , PROGRESSIVE OHIO
6.17% , LVLT.K , LEVEL 3 COMMUNICATIONS
2.99% , NWSA , News Corporation, NWSA
2.45% , R , RYDER SYSTEM
0.73% , EWD , Sweden Index, EWD
1.89% , ABC , AMERISOURCEBERGN
0.57% , EWQ , France Index, EWQ
2.20% , X , US STEEL CORP
1.19% , RHT , Red Hat Inc.
0.89% , CTB , COOPER TIRE
2.20% , IBM , IBM
2.82% , FCX , FREEPRT MCMORAN STK B
1.87% , IPG , INTERPUBLIC GRP
2.09% , CAH , CARDINAL HEALTH
1.41% , MCK , MCKESSON CORP
3.31% , BIIB , BIOGEN IDEC
0.59% , IOO , Global 100, IOO
0.34% , AGG , Bond, Aggregate, AGG
1.13% , BEN , FRANKLIN RSC
2.85% , CSC , COMPUTER SCIENCE
2.77% , PM , Philip Morris, PM
1.74% , BMY , BRISTOL MYERS
1.00% , WAT , WATERS
6.13% , NIHD , NII Holdings, Inc.
0.39% , SRE , SEMPRA ENERGY
1.68% , NVDA , NVIDIA
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Bearish Stocks: Falling Price and Rising Volume
Ranked by Price Change * Volume Change
% Price Change, Symbol, Name
-0.96% , IDU , Utilities DJ, IDU
-2.87% , MBI , MBIA
-0.77% , STJ , ST JUDE MEDICAL
-0.98% , XLU , Utilities SPDR, XLU
-1.24% , NEE , NextEra Energy Resources LLC
-0.72% , KSU , Kansas City Southern, KSU
-1.73% , EIX , EDISON INTL
-1.59% , AEP , AM ELEC POWER
-1.17% , AGN , ALLERGAN
-0.27% , SOXX , Semiconductor iS IGW, SOXX
-2.85% , QCOM , QUALCOMM
-5.44% , AAPL , APPLE COMPUTER
-0.37% , VPL , Pacific VIPERs, VPL
-0.85% , WHR , WHIRLPOOL
-0.97% , DUK , DUKE ENERGY
-2.50% , SVU , SUPERVALU
-1.08% , CNP , CENTERPNT ENERGY
-1.20% , KSS , KOHLS
-0.94% , SO , SOUTHERN
-1.87% , TLAB , TELLABS
-0.88% , VPU , Utilities VIPERs, VPU
-1.79% , BLK , BlackRock Inc.
-0.84% , PEG , PUBL SVC ENTER
-1.61% , ED , CON ED
-0.63% , ETR , ENTERGY
-1.05% , AEE , AMEREN
-0.44% , ECH , Chile MSCI iS, ECH
-0.67% , NI , NISOURCE
-0.44% , IXN , Technology Global, IXN
-1.99% , EXC , EXELON CORP
-0.92% , CR , CRANE
-0.91% , MNST , Monster Beverage, MNST
-0.59% , PPL , PPL
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One-Day Ranking of Major ETFs, Ranked from Strongest to Weakest of the Day:
% Price Change, ETF Name, Symbol
2.13% , Italy Index, EWI
1.93% , South Africa Index, EZA
1.82% , Spain Index, EWP
1.21% , Belgium Index, EWK
0.96% , Austria Index, EWO
0.93% , EMU Europe Index, EZU
0.90% , DIAMONDS (DJIA), DIA
0.89% , Bond, 20+ Years Treasury, TLT
0.82% , India Earnings WTree, EPI
0.82% , Energy DJ, IYE
0.80% , REIT VIPERs, VNQ
0.76% , Energy SPDR, XLE
0.76% , Germany Index, EWG
0.76% , Metals & Mining SPDR, XME
0.75% , Silver Trust iS, SLV
0.74% , Bond Ex-US Treas, BWX
0.74% , Energy & Nat Res iS GS, IGE
0.74% , Europe 350 S&P Index, IEV
0.73% , Sweden Index, EWD
0.73% , Consumer Discretionary SPDR, XLY
0.73% , Telecom DJ US, IYZ
0.72% , Realty Cohen & Steers, ICF
0.72% , Dividend Appreciation Vipers, VIG
0.71% , Consumer Staples SPDR, XLP
0.71% , Energy VIPERs, VDE
0.71% , European VIPERs, VGK
0.71% , Switzerland Index, EWL
0.70% , Homebuilders SPDR, XHB
0.69% , Thailand MSCI iS, THD
0.68% , REIT Wilshire, RWR
0.68% , Real Estate US DJ iS, IYR
0.67% , Health Care SPDR, XLV
0.66% , Basic Materials DJ US, IYM
0.64% , Dividend ex-U.S. DJ iS, IDV
0.63% , Russia MV, RSX
0.61% , Bond, Emerging Mkt JPM iS, EMB
0.61% , Materials SPDR, XLB
0.59% , Global 100, IOO
0.57% , France Index, EWQ
0.57% , Bond, TIPS U.S. Treasury iS, TIP
0.56% , Turkey MSCI iS, TUR
0.52% , South Korea Index, EWY
0.51% , United Kingdom Index, EWU
0.50% , Bond, 10 Year Treasury, IEF
0.50% , Canada Index, EWC
0.47% , Bond, Long-Term Corp iBoxx iS, LQD
0.46% , Value LargeCap Dynamic PS, PWV
0.43% , LargeCap Value S&P 500 iS, IVE
0.41% , Energy Global, IXC
0.41% , Industrial SPDR, XLI
0.41% , Dividend International, PID
0.40% , Value VIPERs, VTV
0.38% , Oil, Crude, U.S. Oil Fund, USO
0.37% , India PS, PIN
0.36% , Global ex U.S. LargeCap Blend, ACWX
0.36% , Value EAFE MSCI, EFV
0.36% , Global LargeCap Blend MSCI iS, ACWI
0.35% , Foreign LargeCap EAFE MSCI iS, EFA
0.35% , Preferred Stock iS, PFF
0.34% , Bond, Intermediate US Aggregate iS, AGG
0.34% , Pacific ex-Japan, EPP
0.34% , LargeCap Blend S&P 500 iS, IVV
0.33% , Dividend SPDR, SDY
0.33% , Malaysia Index, EWM
0.32% , Australia Index, EWA
0.31% , S&P 500 SPDRs LargeCap Blend, SPY
0.31% , Value MidCap Russell, IWS
0.31% , LargeCap Growth Russell 1000 iS, IWF
0.31% , Growth MidCap Russell, IWP
0.29% , LargeCap Blend S&P=Weight R, RSP
0.28% , LargeCap VIPERs, VV
0.28% , MidCap Russell, IWR
0.28% , LargeCap Value Russell 1000 iS, IWD
0.27% , SmallCap Value S&P 600 iS, IJS
0.27% , LargeCap Blend Russell 1000 iS, IWB
0.26% , Blend Total Market VIPERs, VTI
0.26% , China LargeCap Growth G D H USX PS, PGJ
0.26% , LargeCap Blend Russell 3000 iS, IWV
0.25% , Growth EAFE MSCI, EFG
0.25% , SmallCap Blend EAFE MSCI iS, SCZ
0.25% , LargeCap Blend S&P 100, OEF
0.25% , Growth VIPERs, VUG
0.25% , LargeCap Growth S&P 500 iS, IVW
0.21% , MidCap Value S&P 400 iS, IJJ
0.20% , Agriculture DB PS, DBA
0.19% , Bond, Muni S&P ATM-Free iS, MUB
0.18% , Hong Kong Index, EWH
0.18% , Bond, High-Yield Junk, JNK
0.15% , SmallCap Blend S&P 600 iS, IJR
0.15% , Commodity Tracking, DBC
0.15% , Mexico Index, EWW
0.13% , Emerging VIPERs, VWO
0.13% , Bond, High Yield Corp iBoxx iS, HYG
0.13% , Latin Am 40, ILF
0.12% , Financial SPDR, XLF
0.12% , Financial DJ US, IYF
0.12% , Financials VIPERs, VFH
0.11% , Value SmallCap VIPERS, VBR
0.10% , MidCap S&P 400 SPDRs, MDY
0.09% , MidCap Blend S&P 400 iS, IJH
0.09% , Netherlands Index, EWN
0.08% , MidCap Growth S&P 400 iS, IJK
0.08% , Small Cap VIPERs, VB
0.08% , Dividend U.S. DJ iS, DVY
0.07% , Growth SmallCap VIPERs, VBK
0.06% , Emerging Markets MSCI iS, EEM
0.06% , Financial Preferred, PGF
0.05% , SmallCap Blend Russell 2000 iS, IWM
0.05% , Bond, 1-3 Year Treasury, SHY
0.04% , Microcap Russell, IWC
0.04% , Singapore Index, EWS
0.03% , SmallCap Value Russell 2000 iS, IWN
0.00% , Networking, IGN
-0.01% , Bond Treasury Short-Term iS, SHV
-0.03% , Gold Shares S.T., GLD
-0.04% , SmallCap Growth Russell 2000 iS, IWO
-0.04% , Transportation Av DJ, IYT
-0.06% , Frontier Markets Guggenheim , FRN
-0.09% , Water Resources, PHO
-0.12% , SmallCap Growth S&P 600 iS, IJT
-0.13% , Financial Services DJ, IYG
-0.19% , QQQ Nasdaq 100 Trust, QQQ
-0.22% , Oil Fund PowerShares, DBO
-0.27% , Semiconductor iS IGW, SOXX
-0.28% , Dividend High Yield Equity PS, PEY
-0.28% , Taiwan Index, EWT
-0.29% , Emerging 50 BLDRS, ADRE
-0.30% , Info Tech VIPERs, VGT
-0.32% , Bear, Short S&P 500, SH
-0.37% , Pacific VIPERs, VPL
-0.41% , Capital Markets KWB ST, KCE
-0.44% , Chile MSCI iS, ECH
-0.45% , Semiconductor SPDR, XSD
-0.46% , Technology SPDR, XLK
-0.47% , Brazil Index, EWZ
-0.63% , Technology DJ US, IYW
-0.68% , Japan Index, EWJ
-0.75% , China 25 iS, FXI
-0.88% , Utilities VIPERs, VPU
-0.98% , Utilities SPDR, XLU
-1.17% , WilderHill Clean Energy PS, PBW
-1.22% , Biotech SPDR, XBI
-1.52% , Indonesia MV, IDX
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The S&P 500 Composite Potential Resistance
1709.67, high of 8/2/2013
1700.18, high of 8/8/2013
1698.78, high of 7/23/2013
1696.81, high of 8/13/2013
The S&P 500 Composite Potential Support
1687.18, high of 5/22/2013
1676.03, low of 7/26/2013
1672.40, high of 9/9/2013
1671.84, low of 7/16/2013
1669.51, high of 8/26/2013
1669.72, 50-day SMA
1654.19, high of 6/18/2013
1654.18, high of 7/9/2013
1652.62, Fib 38.2% of Jun-Aug 2013
1652.61, low of 8/16/2013
1635.00, Fib 50.0% of Jun-Aug 2013
1629.05, low of 08/27/2013
1617.38, Fib 61.8% of Jun-Aug 2013
1606.04, Fib 23.6% of Nov-May 2013
1592.29, Fib 78.6% of Jun-Aug 2013
1572.20, 200-day SMA
1560.33, low of 6/24/2013
1556.24, Equal Waves Projection
1555.84, Fib 38.2% of Nov-May 2013
1536.03, low of 4/18/2013
1530.94, high of 2/19/2013
1515.27, Fib 50% of Nov-May 2013
1485.01, low of 2/26/2013
1474.69, Fib 61.8% of Nov-May 2013
1474.51, high of 9/14/2012
1468.82, Fib 78.6% of 2009-13 range
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
1416.93, Fib 79.6% of Nov-May 2013
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
1381.50, Fibonacci 78.6% of 2007-2009 range
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
1297.39, Fib 61.8% of 2009-13 range
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
1238.81, Fibonacci 78.6% of 1,576.09 high
1234.81, low of 11/3/2011
1231.04, high of 12/16/2011
1228.74, Fibonacci 61.8% of 2007-2009 range
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
1176.99, Fib 50% of 2009-13 range
1158.66, low of 11/25/2011
1121.44, Fibonacci 50% of 2007-2009 range
1056.58, Fib 38.2% of 2009-13 range
1074.77, low of 10/4/2011
1014.14, Fibonacci 38.2% of 2007-2009 range
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
907.60, Fib 23.6% of 2009-13 range
881.38, Fibonacci 23.6% of 2007-2009 range
869.32, low of 7/8/2009
666.79, intraday low of 3/6/2009
