As “economic softening” increasingly emerges as the prevailing narrative driving the markets, the retail sector occupies a peculiar space amid these shifts in investor confidence, inflation fears, and looming tariff woes. This is because retail straddles both cyclical and defensive sectors, accounting for a huge chunk of Consumer Discretionary and Consumer Staples spending. January retail spending saw its sharpest decline ...
Bristol Myers Squibb (BMY) reported strong Q4 earnings earlier in February, and prospects remain strong for 2025, although it may face some headwinds. The recent earnings announcement for the company led to a pullback in the stock price; however, BMY is now showing signs of recovery and gaining some momentum. The stock caught my interest when I ran my StockCharts ...
In this exclusive StockCharts video, Joe breaks down reverse divergences (hidden divergence), key upside & downside signals, and how to use ADX and Moving Averages for better trades! Plus, he examines market trends and viewer symbol requests! This video was originally published on February 26, 2025. Click this link to watch on Joe’s dedicated page. Archived videos from Joe are ...
Sector rotation is difficult to spot in real time because it unfolds over weeks or months and isn’t always obvious until after the fact. Since there’s no single or definitive way to monitor a rotation, you’d have to observe it from different angles. In this article, we’ll examine one combined approach you can use. Tuesday’s Consumer Confidence report saw its ...
In this video, Dave breaks down bearish macro signals and risk management using the “line in the sand” technique! Learn how to spot key support levels, set alerts on StockCharts, and protect your portfolio! This video originally premiered on February 26, 2025. Watch on StockCharts’ dedicated David Keller page! Previously recorded videos from Dave are available at this link. ...
The US Consumer Confidence Index® came in much lower than expectations, and the Expectations Index fell to 72.9. A fall below 80 signals a recession ahead, enough to elevate the fear of economic weakness. As a result, the stock market sold off. But after 11:30 AM ET, the buyers came in, and the market rebounded from its lows. However, the ...
The complexion of the market is changing. Aggressive sectors which have led the market higher are now beginning to show signs of strain as momentum slowly dissipates and prices turn lower. However, defensive sectors (XLP, XLRE, XLV and XLU) are now leading the market. Typically when this occurs the market is at a top. Given the look of the SPY, ...
In the later stages of a bull market cycle, we will often observe a proliferation of bearish momentum divergences. As prices continue higher, the momentum underneath the advance begins to wane, representing an exhaustion of buyers. We’ve identified a series of bearish momentum divergences in the early days of 2025, from Magnificent 7 names like Alphabet (GOOGL) to financial institutions ...
Utilities enter top 5 Last week’s trading, especially the sell-off on Friday, has caused the Utilities sector to enter the top 5 at the cost of Industrials. Based on last Friday’s close, the sector ranking based on the combination of weekly and daily RRG metrics came out as follows: Communication Services – (XLC)Consumer Discretionary – (XLY)Financials – (XLF)Technology – (XLK)Utilities ...
Let me start by reminding everyone that I believe the most important relationship in the stock market is how consumer discretionary stocks (XLY) perform relative to consumer staples stocks (XLP). This ratio (XLY:XLP) has a VERY strong positive correlation with the S&P 500. In other words, when the S&P 500 advances, a corresponding rise in the XLY:XLP ratio is to ...