Charting Stocks

Last week, we mentioned that technical indicators began to turn negative. Technical damage continued today as the Dow Jones Industrial Average, Dow Jones Transportation Average, and  S&P 500 closed below their pivotal 50 and 200 day moving averages (first time since March), with all 3 averages registering an RSI sell signal.  NASDAQ bucks the trend [...]

What a wild ride these past few weeks have been. Only a month or so ago the Dow Jones Industrial Average traded down to 6,500 amid an onslaught of catastrophic economic news. The market has since rallied 25% from its low with insolvent banks such as Citigroup and Bank of America quadrupling in value. Jim [...]

Much has been made (mostly by the mainstream media) over the recent rally in the Dow Jones Industrial Average. Many of the usual suspects, including those that have been wrong for the past 3 years, have been quick to call a bottom. We, as technicians, tend to pay little attention to CNBC, Fox Business, etc. [...]

The 60 minute chart below suggests that the recent rally in the Dow Jones is losing steam. In our previous post, we noted that the current move may have a bit more to go before turning back down.

The Dow Jones Industrial Average rose almost 240 points (3.5%) today. As mentioned in a previous post, large daily percentage gains are more consistent with bear markets than bulls. Todays rally was led by banks and REIT’s,  two of the most beaten up and oversold sectors – also consistent with a bear market correction.
Below is [...]

Have you ever asked yourself why the Dow Jones Industrial Average contains non-industrial stocks? Why such a large weighting is given to financial companies such as American Express, Bank of America, Citigroup, JP Morgan and AIG (Before its removal)? After all, you wouldn’t expect to see General Motors included in the healthcare index or Goldman [...]

Futures for the Dow Jones Industrial Average are down sharply indicating an opening of 6,918, the lowest level in 12 years.
News of a massive loss from AIG, and the  announcement that  HSBC  will pull out of the US consumer lending business is weighing in on the market. HSBC reported a 70% drop in profits [...]

The Dow Jones Industrial Average and the S&P 500 both closed below their 2002 lows.
ChartingStocks.net wrote in our 2009 forecast, contrary to Wall St consensus,  that we expect the Dow Jones to breach the 6,000 level this year and touch upon 5,800. The risk to our outlook would have come if the Dow Jones was [...]

The Dow Jones Industrial Average breached its November low, closing below 7500 for the first time since October 2002.
In only 18 months, the index has given back all of the gains achieved over the previous 5 years.
The chart below shows the index taking out the 2002 lows, but keep in mind that this is a [...]

2009 will be a year of complete destruction for the US economy. 5 Million will lose their jobs. The Dow Jones Industrial average will break below 6,000. Municipalities will fail. Insurers will fail. The unemployed and foreclosed American population will take to the streets and begin rioting. The Greatest Depression is upon us.
Sound far fetched? [...]