Summary: technical conditions favor a further oversold rally for stocks. Consumer Discretionary Stock Sector Relative Strength Ratio fell below its 50-day SMA on 6/17/10, thereby turning neutral, even though it remains well above its 200-day SMA. Emerging Markets Stocks ETF absolute price is bearish, with the 50-day SMA below the 200-day SMA. Foreign Stocks ETF [...]

Summary: S&P 500 held lows again, while momentum oscillators demonstrate bullish divergence. NASDAQ 100/S&P 500 Relative Strength Ratio held above its 50-day SMA on 6/8/10 and remains bullish. The Relative Strength Ratio rose above 9-year highs on 6/4/10, giving a major bullish signal. S&P 500 Composite tested year-to-date extreme intraday lows and held them again. [...]

Summary: Stocks tested and held previous lows. Shakeout over? Although it is too soon to be sure, Friday might have been a successful test of the 2010 lows. The stock market still looks oversold for the short term, and Friday’s upside reversal suggests that stocks may have found an area of demand just above the [...]

Summary: U.S. dollar, Small Caps, and MidCaps are strong. Crude Oil is has been correcting, short-term. The Small Cap Russell 2000, S&P MidCap 400, and S&P 500 Equally Weighted ETFs continued to move up relative to the S&P 500 Cap Weighted Index. All 3 remain bullish. Absolute price trends for all 3 also remain bullish. [...]

Written by Dan Micovic We saw some great achievements by the market this week.  On the first day of the week (and month), the Dow Jones Industrial Average cracked the 10,400 mark for only the second time since Jan. 20. On Thursday, the Dow closed in positive territory for the year. On the final day [...]