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Price support is established when a downtrend ends and prices reverse back to the upside off a certain price. Below is a chart of Brinker International, Inc. (EAT) over the past year. For the past month, every time that EAT has fallen to the 150-152 level, buyers have stepped in and supported the stock. The lowest closing price has been 151.97 on August 8th.... keep reading

Sonos, Inc. (SONO) is a $1.46 billion consumer electronics company, headquartered in Santa Barbara, CA. It's been downtrending this year since peaking in March 2024. Over the past few months, SONO has made a move higher to challenge overhead gap resistance, but it's been unable to break through (red arrow). Its AD line, though, is powering to new highs, despite a lackluster price chart (bottom panel):... keep reading

On Wednesday, I provided you an example of how retail traders are manipulated with respect to Apple, Inc. (AAPL). AAPL promptly exploded on Thursday, gaining 4.3% and finishing 3rd out of 500 stocks on the S&P 500. Volume surged to more than 91 million shares and it was the biggest hollow candle (biggest % gain from open to close) since February 3, 2023. Well, this type of manipulation is not an isolated situation. Ready to take a look at Tesla, Inc. (TSLA)?... keep reading

I like to trade stocks with momentum, and especially those that belong to a group that's showing bullish momentum as well. Carpenter Technology Corp (CRS) seems to fit that bill.... keep reading

As most of you know by now, I'm a huge fan of relative strength, especially as a company approaches its quarterly earnings report. I looked at all 82 companies that are on our Upcoming Earnings - Relative Strength ChartList for this week and several looked solid, but I think my favorite is... keep reading

I'm not sure I have the definitive answer, but I did find a stock that's facing this question right now. Applovin Corp (APP) is one of the best software stocks ($DJUSSW) currently, as it's relative strength line has been soaring since mid-February. APP's AD line has also ripped higher, suggesting plenty of accumulation has taken place in the stock. But what do we make of the $DJUSSW:$SPX relative strength line tumbling during this same period of relative strength for APP?... keep reading

My quick answer would be YES, but there are limitations to every technical indicator or tool and you should be aware of them. First, for those of you not familiar, SCTR is simply an acronym for StockCharts Technical Rank. It is a relative strength system developed by John Murphy, a stock market technician that has heavily influenced my work through his books and other teachings.... keep reading

Broadline retailers ($DJUSRB) have been moving sideways relative to the benchmark S&P 500 for awhile now, but the group is actually nearing a key price breakout, attempting to clear its absolute price high from January 2025. That's led to a lot of consolidation in individual names in the space, including Ollie's Bargain Outlet Holdings, Inc. (OLLI).... keep reading

One consistent theme in the stock market over the past few years is that small caps simply have NOT been the place to invest. Many stocks in this asset class have been hot from time to time, but most seem to come up short when it comes to staying power. EverQuote, Inc. (EVER) is one of those stocks that's been red hot for nearly a year, but has fallen hard since its peak above 25 just 6 weeks ago:... keep reading

Could an answer be "BOTH?" First, the chart I'm referring to belongs to Wabtec, Inc. (WAB). From a bullish perspective, WAB shows excellent volume trends. Also, the AD line is nearing another 2024 high. Relative strength was very strong back in April and May, but it did cool down for several weeks before turning higher again in August and September. Take a look at these bullish technical traits:... keep reading

I love this time of the calendar quarter. It's the busiest week of earnings season, but it's not just the companies that are reporting this week that I'm interested in. At EarningsBeats.com, we keep a Strong Earnings ChartList (SECL) for a reason. It's a Watch List that organizes companies that report solid earnings throughout the quarter. To earn their way onto our SECL, companies must beat Wall Street consensus estimates as to both revenues and EPS. They must also be liquid (daily share volume > 200,000 shares) and looks solid technically.... keep reading

Most companies see their stock market valuation go up or down based on what they do or don't do. Sometimes, however, companies will benefit when another company fails to impress. That's exactly what happened last week as Tesla, Inc. (TSLA) held its robotaxi event. Investors treated it as though it was a dud, sending TSLA's shares reeling. The TSLA event and weakness, though, turned out to be reason to party at Uber Technologies (UBER), as you can see below:... keep reading

The beauty of most patterns is that they can be used to determine "measurements" or target prices. These measurements can be to the upside or the downside. For today, let's discuss the downside target for Tesla, Inc. (TSLA) after this cult stock broke its neckline in October to trigger one of the most shocking declines of 2022. The first important note is that topping head & shoulders patterns ALWAYS follow an uptrend. If you don't have a prior uptrend, then it's not likely you have a head & shoulders pattern. On this TSLA chart, it all begins with the huge advance that TSLA made post-pandemic, from the March 2020 low:... keep reading

I have been studying and researching the impact of monthly options expiration for at least 15-20 years and I cannot recall a monthly expiration that is more dangerous than the one we're about to encounter in the week ahead. June monthly options expire on Friday of this week, and thanks to the recent huge advance in U.S. equity prices, and especially the handful of mega cap NASDAQ 100 stocks, there's record net in-the-money call premium that we'll need to deal with. Based upon our calculation, the QQQ and SPY have net in-the-money call premium totaling more than $7.2 billion. I cannot recall a single month where we've ever seen more. These types of short-term issues have had serious implications with stock market performance as you can see from the chart below:... keep reading

We keep a Strong Earnings ChartList (SECL) for a reason. It organizes a list of companies showing strong fundamentals (better-than-expected revenues and EPS) and strong technicals. One issue, however, is that many of these stocks move higher, because of these strong reports, and then it's up to us to show the patience and discipline necessary to take advantage of short-term pullbacks. Chasing stocks after big moves can be extremely costly, so we try our best to resist that temptation. One stock that fits this scenario, in my opinion, is Western Digital Corp (WDC). It had a big two-week run in late February to early March as you can see below:... keep reading

I have a large number of signals that I use to determine the most likely short-term and long-term stock market direction. However, one of the strongest long-term signals comes from sentiment and I would not want to bet against it. Long-term sentiment doesn't change directions week-to-week or even month-to-month. It tends to reverse over a very long-term period, but when it does, its signals tends to be excellent.... keep reading

If you're not aware, "amateur hour" in the stock market refers to the first hour of trading, roughly from 9:30am ET to 10:30am ET. I'd extend that to perhaps 11:00am ET. Over the past few months, we've seen very bearish action on Wall Street, but you'll likely be very surprised to see how the QQQ (ETF that tracks the NASDAQ 100) has traded intraday... keep reading

After a price high has been set off an uptrend, I look for a continuation pattern to emerge. Alphabet (GOOGL) is a perfect example. GOOGL rallied for close to a year, setting a significant high in January 2024. Since then, we've seen a gap down to establish a potential inverse left shoulder, a subsequent recovery to set the left side of a neckline, a further drop to print an inverse head and a March rally all the way back up to test initial price resistance set by the left side of a neckline. That high culminated with a shooting star candle and false breakout in mid-March that established the potential right side of a neckline. Check it out:... keep reading

When price action moves higher, but momentum oscillators don't follow suit, it's referred to as a negative divergence. It's a signal that momentum is slowing or stalling and that we should consider a potential top in price. While the textbook definition is very easy to interpret on the surface, we also need to make sure we use a healthy dose of common sense. After all, if a stock breaks out to a new high on massive volume, but a momentum oscillator lags, is it really a sign of slowing momentum? On Tuesday, Apple (AAPL) soared on AI news, closing at an all-time high above 200.00 and producing one of its highest volume days since the 2020 pandemic:... keep reading

Nothing is ever entirely perfect when we look at the stock market. I can always poke holes in it, if I choose to. But it's the BIG Picture that we need to say most focused on and, of course, ignore the worthless media. This morning I saw a headline that said we should really be worrying. Why? Because the stock market is rising. Yep, now THAT is even a bad thing, according to the media. I just laugh. Let's turn to the charts instead.... keep reading