The Utilities Sector (XLU) has shown relative strength in the background of the recent market downswing, and still trades in a respective chart position. Let’s look at its chart and its comparison to the S&P 500. XLU – Utilities Daily Chart: Since the March lows, price has steadily and comfortably trended upwards, and price now…
For those of us who mainly follow the “Big Three” US Stock Market Indexes, you might be surprised to find that the Russell 2000 – Small Cap Index – has outperformed the S&P and Dow Jones, and is closer in recent performance to the NASDAQ. Let’s see the Russell’s recent dominance: I’m showing the actual…
It’s time for lower prices in the major US Indexes! So there are no guarantees, but the odds seem to favor a higher chance for more downside action in the short-term future. Let’s see why: First, the Dow Jones Daily Chart: Price failed at the confluence of the 20 and 50 EMAs Price formed a…
Yesterday, I examined the 10 Year Note, commenting that it had broken resistance. Now, let’s look at two bond funds to see how prices are being affected, and also view a strong correlation between the 10 Year Note Yield and the S&P 500 Index. First, the TIPS Bond Fund: iShares writes: The iShares Lehman U.S….
We’ve heard the market adage: “Sell in May and Go Away!” but does it really work? Historically, the market has performed better from the October – May period than it has from May to October, but I wanted to show you the last few years starting with 2002 and conduct visual inspection of this strategy….
The $VIX (Volatility Index) is bouncing off new lows for 2008 in a sign that traders and funds have become less fearful in the current market environment. Perhaps they are unwinding their hedges or engaging in some sort of risk-seeking or ‘cooling off’ period, but it is interesting to note that it took the VIX…
Are the Indexes at Support or Resistance? Today’s action would lend to the “Resistance” camp, but let’s take a closer look. Let’s start with the daily chart of the Dow Jones Index: With this chart, I have Resistance plotted via two areas: 1. The declining 200 day moving average 2. The horizontal trendline via prior…
Perhaps unexpectedly, the market gave us a powerful trend day up today. Let’s look at it and see where it leaves us in the broader picture: I’m showing the S&P 500 ETF (SPY) here for a proxy of the intraday action. Markets usually start a trend day by gapping, but this trend day snook up…
Can the relationship between 10 Year Note Yields and US Stock Prices reveal risk seeking and risk averse behavior of funds and investors? Earlier, I posted a few charts on the topic, so be sure to refresh with those for more information: Stock Correlation with the 10 Year Yield A Look at Bonds, Stocks, and…