Category Archives: Market Overview

TBT – Bullish Engulfing Candle

A major bullish engulfing candle has formed on the weekly ProShares UltraShort 20+ Year Treasury (TBT) chart. It encompasses the prior six weeks and closed out above the 10 week (50 day) moving average for the first time this year. The RSI and Money Flow Index, a volume-weighted relative strength measure, are moving above their… Read More »

Dollar Bottom?

There is a lot of talk about the potential for the U.S. dollar to move higher on a strong employment report tomorrow. The weekly chart of the PowerShares US Dollar Bullish Fund (UUP) shows a downtrend line in place for nearly a year that will determine the longer term trend. Note the rudimentary head and… Read More »

World Cup and Major Indices

If the U.S. soccer team loss in the World Cup has not depressed you enough, here are two charts that might help push you over the edge. The advance in the Russell 2000 Index today was rejected at its previous March high, and the DJIA moved just a bit above its June highs then pulled… Read More »

Major Indices on Multiple Timeframes

The monthly charts need very little in the way of annotation or commentary. The major indices finished the second quarter near their highs and all indications are the long term trend is higher. The weekly charts show consolidation in those indexes or pullbacks in the first half of the year, but all but the Russell… Read More »

Percent of Stocks > 50 DMA

Eighty eight percent of stocks in the S&P 500 index are above their 50 day moving average, a level that many consider an overbought condition that should precede a pullback. This, however, is not usually the case, but by incorporating the relative strength index (RSI) in the analysis, the likelihood of determining a pullback increases.… Read More »

DBA and Food Inflation

The PowerShares DB Multi-Sector Commodity Trust Agricultural Fund (DBA) is designed to reflect the performance of the agricultural sector, and it has been moving higher since the beginning of the year. The monthly chart shows shares breaking above a historical downtrend line in March, then moving back down to retest it last month. The RSI… Read More »