Each week we find examples from the current market to illustrate the use of technical analysis for research. The chart below is the PHLX Semiconductor Index (SOX). There is plenty to learn from the chart since making a high in April at the 400 mark. Since that point the index made five attempts to hold support [...]

Technical analysis of the stock market has become more mainstream. When I first started in the financial services business it was referred to as voodoo analysis. More and more investors refer to pieces of technical analysis as an accepted science. That said, fundamental analysis is still the most accepted form of research on Wall Street. From [...]

Telecom has been on the rise again. This has been a tough sector for investors to hold over the last year. The net gains have been minor and the volatility has been major. Looking at the chart of IYZ, iShares Telecommunications ETF you can see the result and the volatility. However, from a technical perspective [...]

Gold hit $1217 yesterday and all the buzz is about the price jumping higher. We can talk about the reasons why gold will break higher from different perspectives. Choosing from two of the most common, first, the fear factor of the global markets relative to the global economy and second, too much money supply and inflation. Supply and demand [...]

Chart of the S&P 500 index below shows the twists and turns the market has been through since hitting the high in April. The questions surrounding the outlook for the economy have become the latest news items detracting from any definitive direction relative to the future outlook.

The turn lower at the April high started with the [...]

The financial sector has been challenged from every direction and continues to lag the broader markets. Taking a look at the chart below of XLF, SPDRs Select Financial ETF the sector is poised to break through resistance at the $15 level. Based on the technical data the breakout would be a positive from the three month [...]

Can the Dow give us an indication on market direction? The index has moved back to a resistance level worth watching short term. 10,365 is the level to watch in conjunction with the 200 day moving average. As the chart below shows the pink line is the June high, the blue line is the 200 [...]