The Zweig Breadth Thrust is best known for its bullish reversal signals, which capture a material increase in upside participation. There is, however, more to the indicator because traders can also use the “setup” period to identify oversold conditions. This report will explain the original Zweig Breadth Thrust and show how these signals work. Note that our breadth models turned ...
After reaching an all-time around $540 in mid-February, the Nasdaq 100 ETF (QQQ) dropped almost 14% to make a new swing low around $467. With the S&P 500 and Nasdaq bouncing nicely this week, investors are struggling to differentiate between a bearish dead-cat bounce and a bullish full recovery. There was no question that valuations had become incredibly rich going into ...
If one word could characterize this week’s stock market price action, it would be “sideways.” At least it’s better than trending lower. The stock market seemed comfortable with the Federal Reserve’s message on Wednesday, but lost that upside momentum and wasn’t able to follow through on the upside move until the last 30 minutes of Friday’s trading. The Dow ($INDU), ...
Seeing that the earnings slate is light, this week we focus on certain stocks to watch during uncertain times. If you are jittery and risk-averse, we have two safer (boring) stocks, plus one tech stock that has shown great relative strength compared to its peers. Let’s do a deep dive into all three. American International Group (AIG) Insurance stocks have done ...
We wrote about the American Association of Individual Investors (AAII) poll results a few weeks ago. Since then, the bearish activity on the chart has broken a record for the poll. Going back to the poll’s inception in 1987, we have never seen four weeks in a row of bearish readings above 55%. We are now at bearish extremes for ...
You already know about diversification. You’ve set your investment goals, picked a benchmark, and decided on the weighting of your allocations. Now, it’s come down to selecting the assets—stocks or ETFs—to build your portfolio. As a long-term investor with moderate risk tolerance, how might you build a portfolio to withstand market drawdowns and weather the business cycle? There are many ...
In this exclusive StockCharts video, Joe breaks down a new SPX correction signal using the monthly Directional Lines (DI), showing why this pullback could take time to play out. He explains how DI lines influence the ADX slope and how this impacts shorter-term patterns. Joe also reveals a strong area in the commodity market defying the correction and highlights top ...
Tuesday’s stock market action marked a reversal in investor sentiment, with the broader indexes closing lower. The S&P 500 ($SPX), Nasdaq Composite ($COMPQ), and Dow Jones Industrial Average ($INDU) are still below their 200-day simple moving average (SMA). Investor anxiety is elevated ahead of the Fed’s culmination of its two-day policy meeting. The risk-off sentiment is back, with gold and ...
Is a new market uptrend on the horizon? In this video, Mary Ellen breaks down the latest stock market outlook, revealing key signals that could confirm a trend reversal. She dives into sector rotation, explains why defensive stocks are losing ground, and shares actionable short-term trading strategies for oversold stocks. Don’t miss these crucial market insights to spot the next ...
Last week, tariff talks, recession fears, and waning consumer sentiment sent stocks lower. This week, the narrative may have shifted, as investors prepare for a macro-filled week and NVIDIA’s annual GTC developers’ conference. Retail sales data for February came in slightly lower than expectations but better than January’s number. This, along with Treasury Secretary Scott Bessant’s comments about the necessity ...