The broader stock market indexes are still in a holding pattern as investors await the Fed’s decision on Wednesday. Tuesday’s price action was a little like a “Whac-a-Mole” game for the S&P 500 ($SPX) and Nasdaq Composite ($COMPQ). Both indexes poked above their downward-sloping trendlines (the Nasdaq’s line is steeper) but fell back below them by Tuesday’s close. The Dow Jones Industrial Average ($INDU), which hit an all-time high on Monday, also retreated, snapping its...

As of Tuesday, the CME’s FedWatch Tool gave a 67% chance of a 50 basis-point rate cut—way up from the 25-point cut everyone was betting on just days ago. A rate cut could send the price of gold soaring past its all-time high, so investors and goldbugs are on edge, waiting for the results of this week’s FOMC meeting. Suppose the expected rate cuts do take place and gold price jumps. How high can the...

As part of Carl’s review of Gold charts, he explained how we use the close-ended fund, Sprott Physical Gold Trust (PHYS) to measure sentiment for Gold. Depending on how PHYS trades, it trades at a discount or premium based on the physical Gold that it holds. These discounts and premiums help us measure Gold sentiment. Uranium (URA) and Nuclear Energy ETF (NLR) have formed double bottoms but how healthy do they look moving forward? Carl...

Good morning and welcome to this week’s Flight Path. Equities saw the “Go” trend return after a triplet of uncertain “Go Fish” bars. We saw blue “Go” bars from Wednesday on. Treasury bond prices remained in a strong “Go” trend painting blue bars the entire week. U.S. commodities remained in a “NoGo” trend this week but as the week came to a close we saw a couple of weaker pink bars. The dollar also saw its “NoGo” trend continue...

That’s a great question, because we saw some very nice gains and we’re now approaching all-time highs, especially on the Dow Jones ($INDU) and S&P 500 ($SPX). The more growth-oriented NASDAQ 100 ($NDX) has much more work to do. How much more strength is required to generate those breakouts? Well, let’s go to the charts: Dow Jones: S&P 500: NASDAQ 100: The Dow Jones and S&P 500 are clearly the better relative performers as they’re...

Whipsaws and losing trades are part of the process for trend-following strategies. These are expenses, and simply unavoidable. Over time, trend-following strategies will catch a few big trends and these profits will more than cover the expenses. Let’s look at signals and backtest results for the Cybersecurity ETF (CIBR). The chart below shows the Cybersecurity ETF (CIBR) with the Percent above MA indicator in the lower window. This indicator measures the percentage difference between the...

In this StockCharts TV video, Mary Ellen reviews the broader markets and highlights pockets of strength that are starting to trend higher. She also shares add-on plays to the move into home construction stocks, and shows key characteristics needed to confirm a downtrend reversal in select stocks. This video originally premiered September 13, 2024. You can watch it on our dedicated page for Mary Ellen on StockCharts TV. New videos from Mary Ellen premiere weekly on Fridays. You can...

While the S&P 500 finished the week once again testing new all-time highs around 5650, the Nasdaq 100 remains rangebound in a symmetrical triangle or “coil” pattern.  While this pattern does not necessarily suggest a potential next move for the QQQ, it did lead me to think about four different scenarios that could play out over the next six to eight weeks. The chart of the QQQ looks a lot like the chart of Nvidia...

This week’s stock market action may have caught many investors by surprise. After last week’s massive selloff, this week’s turnaround reignited investor enthusiasm in equities. Large-cap growth stocks were the leading asset class in the early part of the trading week, and, by Friday, the clear leaders were the mid- and large-cap stocks. This week’s Consumer Price Index (CPI) and Producer Price Index (PPI) showed that inflation has cooled, which means the Fed will probably...

Tech Rallies But Remains Inside the Lagging Quadrant A quick look at the Relative Rotation Graph for US sectors reveals that the Technology sector is still the main driving force for the market. The technology sector now makes up more than 30% of the market capitalization of the S&P 500, so it significantly influences the price (movement) of the S&P 500 index. On this weekly RRG above, the XLK tail is seen heading further into...