Divergences sending bearish message to stocks?

                                                                                                                                                                                       

The 2-pack below compares the Cap weighted and Equal weighted performance year to date of the S&P 500 and Nasdaq 100-

CLICK ON CHART TO ENLARGE

The chart above reflects that the equal-weighted S&P 500 ETF (RSP) and the equal weighted NDX 100 ETF (QQQE) have both underperformed the Cap weighted indices by over 25% this year. Both of the equal-weighted ETF’s over the month have trades sideways, while the Cap weighted are moving higher.

The lagging performance by the equal-weighted ETF’s reflects that fewer stocks are participating in the rally.

Below looks at Cap/Equal weighted ratios for the S&P 500 and NDX 100-

Divergences are taking place by both ratios as the S&P has been diverging since earlier this year and the NDX has been diverging the past few years.

The divergences by themselves do not mean the market has to head south right or a bear market is ready to start. Historically when fewer and fewer stocks are powering a bull market rally, it does reflect a thinning of the market and could result in unimpressive gains going forward.

Stock bulls want to see these ratios heading higher, not continuing to diverge.

 

 

Why you see chart pattern analysis with brief commentary:   There is a ton of news and opinions about markets and stocks that make the decision-making process more difficult than it needs to be.   

I believe the Power of the chart Pattern provides all you need to see what is taking place in an asset and determine the action to take. 

This approach has worked well for me and our clients and I encourage you to test it for yourself.

Receive my free research posted on the blog daily here 

Or,  send an email if you would like to see sample research and take me up on a trial of my premium or weekly research where I provide actionable alerts on breakouts and reversals in broad market indices, sectors, commodities, the miners and select individual stocks 

 

 

Email services@kimblechartingsolutions.com  

Call us Toll free 877-721-7217 international 714-941-9381 

Website: KIMBLECHARTINGSOLUTIONS.COM 

 

 

 

 


 

 

 

 

 


The post Divergences sending bearish message to stocks? appeared first on crude-oil.news.

Banks breakout of upper level basing pattern-

Since the first of this year, banks didn’t have much to brag about, as they lagged the broad market to the upside. While lagging, they potentially built a base that could reward the owners of banks for a while going forward.

Below looks at the Bank Index (BKX) over the past 6-years-

CLICK ON CHART TO ENLARGE

Potential that the sideways choppy action in the BKX index this year was an upper-level base to spring higher off of.

This week the BKX index broke out to the upside at (1), which is bullish price action for this key sector.

Full Disclosure- Premium Members are overweight this key sector since the lows earlier this year, they own XLFC & GS

 


The Power of the Pattern at work to save people time, improve decision-making & results.   

We identify high probability big pattern reversals and breakouts in global indices, sectors, commodities, several metals and select individual stocks

Send us an email if you would like to see sample reports or a trial period to test drive our Premium or Weekly Research

 

Receive Chris Kimble’s research by email posted to his blog daily  https://kimblechartingsolutions.com/newsletter-preferences/

 

Email services@kimblechartingsolutions.com 

 

Call us Toll free 877-721-7217 international 714-941-9381

 

Website: KIMBLECHARTINGSOLUTIONS.COM

 

 

 

 

 

 

The post Banks breakout of upper level basing pattern- appeared first on crude-oil.news.

Crude Oil- Potential short prospect says Joe Friday

Crude Oil has rallied for the past few months, could it be peaking? Joe Friday suggests Crude finds itself at a key inflection point for it and its Fear Index (OVX).

Below looks at Crude Oil futures over the past decade-

Crude oil weekly, chris kimble chart

CLICK ON CHART TO ENLARGE

Crude Oil rally of late has it testing 6-year falling resistance as its fear index (OVX) is testing 2015 lows at the same time.

Joe Friday Just The Facts Ma’am– If Crude breaks support and OVX breaks resistance at (4), Crude could be a good prospect to short, as selling pressure in Crude could pick up.

The stock market rally of late might get a little nervous if Crude would happen to break down and OVX breaks out. What Crude does here will be important for Crude Oil and the broad market in general, as traders now own a crowded trade, similar to what they did back at the highs in 2014.

 

 

The Power of the Pattern at work to save people time, improve decision-making & results.   

We identify high probability big pattern reversals and breakouts in global indices, sectors, commodities, several metals and select individual stocks

Send us an email if you would like to see sample reports or a trial period to test drive our Premium or Weekly Research

 

Receive Chris Kimble’s research by email posted to his blog daily  https://kimblechartingsolutions.com/newsletter-preferences/

 

Email services@kimblechartingsolutions.com 

 

Call us Toll free 877-721-7217 international 714-941-9381

 

Website: KIMBLECHARTINGSOLUTIONS.COM

 

 

 

 

 

The post Crude Oil- Potential short prospect says Joe Friday appeared first on crude-oil.news.

Doc Copper helping materials ETF’s breakout again

Doc Copper helping materials ETF’s breakout again

Many are of the opinion that what Doc Copper does, can send an important price message about the strength or of lack of in the overall economy. Doc Copper is important to keep a close eye and how Basic Materials stocks are performing can be important to keep aware of.

Below looks at Basic Materials ETF (XLB) over the past few years-

CLICK ON CHART TO ENLARGE

Ascending triangles are rewarding patterns to find in bulls markets, as this pattern breaks to the upside two-thirds of the time. This pattern also helps with risk management, as it helps one apply stops, should the pattern fail to break out, which it does one-third of the time.

Below looks at a different Basic Materials ETF (IYM)

basic materials weekly chris kimble chart

CLICK ON CHART TO ENLARGE

Strenght in Doc Copper, XLB and IYM often times is a good sign for the macro economy. If both of these would continue higher, it could send a concerning message to bond hold holders. The global growth story wants/needs to see both of these continuing to head higher.

If you would like to receive weekly Power of the Pattern thoughts on Copper and the Basic Materials sector, we would be honored if you were a Metals or Sectors Member, as we update both memberships on these patterns each week.

 

 

The Power of the Pattern at work to save people time, improve decision-making & results.   

We identify high probability big pattern reversals and breakouts in global indices, sectors, commodities, several metals and select individual stocks

Send us an email if you would like to see sample reports or a trial period to test drive our Premium or Weekly Research

 

Receive Chris Kimble’s research by email posted to his blog daily  https://kimblechartingsolutions.com/newsletter-preferences/

 

Email services@kimblechartingsolutions.com 

 

Call us Toll free 877-721-7217 international 714-941-9381

 

Website: KIMBLECHARTINGSOLUTIONS.COM

 

 

 

 

 

 

The post Doc Copper helping materials ETF’s breakout again appeared first on crude-oil.news.

Gold & Silver create bearish reversals this month, says Joe Friday

Below looks at Gold and Silver patterns on a “Monthly basis” over the past 7-years. The rally in Gold and Silver since early 2016, has taken both of them back to test levels that were heavy for each of them over the past few years.

Gold and silver weekly charts

CLICK ON CHART TO ENLARGE

Joe Friday Just The Facts Ma’am– Gold and Silver created “Monthly Reversal” pattern this month at each (2), just under key overhead resistance at (1). These monthly reversals are the largest monthly reversals for both metals in the past few years.

One-month reversals at resistance in time could be concerning to Gold & Silver bulls. A one-month reversal pattern doesn’t prove that the 18-month rally is over. The reversal pattern could be something to pay close attention too, since Gold and Silver traders have created crowded bullish trades, as resistance tests are in play at each (1).

Metals bulls would LOVE to see both break out at (1). If you would like to stay abreast of these patterns in Gold & Silver, we keep Premium and Metals members updated each week on these patterns.


The Power of the Pattern at work to save people time, improve decision-making & results.   

We identify high probability big pattern reversals and breakouts in global indices, sectors, commodities, several metals and select individual stocks

Send us an email if you would like to see sample reports or a trial period to test drive our Premium or Weekly Research

 

Receive Chris Kimble’s research by email posted to his blog daily  https://kimblechartingsolutions.com/newsletter-preferences/

 

Email services@kimblechartingsolutions.com 

 

Call us Toll free 877-721-7217 international 714-941-9381

 

Website: KIMBLECHARTINGSOLUTIONS.COM

 

 



The post Gold & Silver create bearish reversals this month, says Joe Friday appeared first on crude-oil.news.