The good news with price support holding four times is that we can say that buyers have consistently jumped in and supported a stock's price at that level. The bad news is that support will eventually give way and, if it does, a selloff could accelerate very quickly....keep reading

RSI is an indicator that I use periodically at StockCharts.com. I find it most useful in confirming trending or trendless periods. Most technicians use RSI to determine overbought and oversold levels....keep reading

If I could be granted one wish in the stock market, it would be that I could see every key bottom in price, whether it's the S&P 500, an asset class, or simply an individual stock. What a super power that'd be! Well, unfortunately, none of us are blessed with that super power, but we do get some hints about bottoms if we care to pay attention. To give you an example, I believe Enphase Energy, Inc. (ENPH), a renewable energy company ($DWCREE), has bottomed. First, it appears that we've seen not one, but two exhaustive-type candles over the course of the past 7-8 weeks:...keep reading

There are a lot of good things happening to PepsiCo Inc. (PEP) right now, after a couple years of extremely poor performance relative to both its peer group soft drinks ($DJUSSD) and then Coca Cola Co. (KO) more specifically....keep reading

As most of you are probably aware, I do a TON of historical research about the stock market. I've been tracking the S&P 500's daily results since 1950 and the NASDAQ's daily results since 1971. There are both short-term and long-term trends that we should be aware of, especially those of us who like to short-term trade. I will be discussing several of these trends during our just-announced Market Manipulation event that will be held on Saturday, November 5th, beginning at 10am ET. Please be sure to mark your calendar as you will NOT want to miss this event!...keep reading

I've been trading key gaps on stocks for a long, long time. But it wasn't until about 6-7 years ago that I began setting up a ChartList to keep an organized list of them. That ultimately morphed into our Strong Earnings ChartList (SECL) at EarningsBeats.com, which houses our earnings research....keep reading

SquareSpace Inc. (SQSP) has been in a fairly narrow trading range since gapping down in early September. Support has been very consistent near the 27.50 level, while each rally stalls once it trades into its gap resistance zone. I do like the improving odds that SQSP is going to make a breakout stick fairly soon, though. Check out the AD line on this chart:...keep reading

I remember back at MarketVision 2022, held on Saturday, January 8, 2022, that I said, "Our biggest issue heading into 2022 is sentiment". We had NEVER seen so much bullishness and complacency in the equity-only put-call ratio ($CPCE). Our 253-day SMA (1 Year) of the CPCE was lower than almost ANY SINGLE CPCE DAILY READING over the prior 15 years. It was CRAZY! My comment then, throughout 2022, and even into 2023, was that we needed a sentiment reset. We needed everyone to grow so bearish that they believed the market would crash and never come back. Unfortunately, we needed everyone to just SELL! Well, we're there....keep reading

I can look at nearly any stock and come up with a quick reason why I should buy it or short it. But it's much more important to find MULTIPLE reasons to support your position. Advanced Micro Devices (AMD) is a leading stock in the semiconductor space ($DJUSSC) and buying just about any stock in semiconductors has made sense in 2023. Right now, however, I can make several arguments why I might want to sell AMD. There are a couple of obvious reasons to want to sell AMD, but let's first take a look at what the chart's telling us:...keep reading

Let me first begin this discussion by saying that sentiment does a MUCH BETTER job at marking market bottoms than it does market tops. And remember, sentiment is just one piece of the market puzzle and we need to look beyond sentiment to other corroborating factors before growing more optimistic (market bottom) or pessimistic (market top)....keep reading

Chart updated October 20...keep reading

The investment services group ($DJUSSB) has been one of the best-performing groups of 2025, ranking 16th year-to-date out of over 100 industry groups. Unfortunately, not all stocks within the industry group exhibit strength at the same time....keep reading

According to Yahoo! Finance, Unitedhealth Group (UNH) has beaten Wall Street EPS consensus estimates 56 quarters in a row. That's impressive. I didn't go back 14 years to study the market's reaction to each of those reports, but I can say that UNH has gapped higher after 4 of its last 5 quarterly earnings reports and its absolute and relative strength would argue for another solid report and reaction on Friday, July 15th - the date of its next earnings announcement:...keep reading

One of the tools at StockCharts.com that isn't discussed often enough is the correlation coefficient. You can access it by looking under "Indicators" and finding "Correlation" on the drop down menu. This indicator allows you to compare how closely any two symbols are correlated - either positively (above 0 with highest level +1) or negatively (below 0 with lowest level -1)....keep reading

In a perfect world, I want to trade leading stocks in leading industry groups in an uptrending market. Unfortunately, we can't always have all three. Over the past couple weeks, we've seen a significant selloff in U.S. equities, adding much more trading risk to owning just about any stock. Even the best of the best patterns can fail in this environment and that makes individual stock picking even more valuable....keep reading

I'm sure there are some traders who find success by "flying by the seat of their pants". But most of us need education, patience, and perhaps above all else, awareness. I suppose there are plenty of ways to describe or define awareness, but one such way is simply to see things developing before they actually happen. Every time I've given a MarketVision forecast at the beginning of the year, I've used awareness to some degree. In the following example of Caterpillar (CAT), there is no positive divergence in play......yet. But if CAT were to move lower one more time, there's a reasonable chance that one could print:...keep reading

I love these trades. Western Digital (WDC) reported earnings on Monday, January 22nd, easily surpassing both revenue and EPS estimates. Revenues came in at $3.03 billion (actual) vs. $2.99 billion (estimate). Meanwhile, WDC posted a loss, but one that was considerably less than expected. Actual EPS was -0.69, while Wall Street was looking for -1.33. The market reaction? A small decline of roughly 2.5% at the opening bell, but since then, WDC has fallen a bit further to test key closing price and gap support at 57.00. Thursday's intraday low in the first hour of trading touched 56.59, but a rally over the balance of the day saw WDC finish at 57.40, above key support. Check out the chart:...keep reading

During normal market periods (2022 is not normal, by the way), we tend to see the S&P 500 and 10-year treasury yield ($TNX) trend in the same direction. There's a clear positive correlation between the two. The reason is fairly simple: Strong economic conditions would favor the stock market (S&P 500), but those same conditions would tend to cause selling in bonds as rates rise. The price of bonds and the direction of yields are ALWAYS 100% inverse....keep reading

Originally Posted on September 29, 2014...keep reading

Initial entry at 20 day EMA triggered....keep reading