In early May we outlined the "Five Bull Market Barometers" we're watching to identify the beginning of a new bull market in stocks.

If you haven't read our initial post linked above, we'd encourage you to check it out so you understand what the rationale behind these five indicators is.

Now that the market has pulled back from its overhead supply, let's take a look at where these long-term indicators stand.

From the desk of Steve Strazza @Sstrazza

It's been a close your eyes and buy anything market, particularly the past few weeks as even the most hard-hit areas experienced monster rallies. That appears to be changing this week with the biggest 1-day down move in the S&P since mid-March as well as the largest single-day spike in volatility since February 2018.

Last week we highlighted the healthy rotation into cyclicals. We pointed out that the secular laggards and areas that had suffered serious structural damage were now outperforming, and by quite a wide margin.

We used this scatter plot of our Dow Jones Industry universe to illustrate this price action.

The first thing we want to do when analyzing any asset, crypto or otherwise, is identify the direction of the primary trend. In the case of Bitcoin, the trend for the lifetime of this asset is clearly: Up.

Look at this pattern of Uptrend, Consolidation, Breakout, Uptrend, Consolidation, Breakout, Uptrend, Consolidation, Breakout, Uptrend, Consolidation.....

The next step in this pattern is Breakout right?

Relative strength charts are a great tool to identify where the big money is flowing into and out of.

Today, we're looking at a chart that suggests one sector is getting ready to outperform the broader market again.

From the desk of Steve Strazza @Sstrazza

We’ve written extensively about the split market we’ve been in for the better part of the year, as the same leaders coming into the Q1 crash emerged as the strongest areas coming out of it. Over the past 3-4 weeks we’ve seen some major mean reversion and much-needed participation from the cyclical sectors which have been lagging for years now.

This is constructive rotation and a major positive for bulls as we’re going to need to see this type of breadth expansion if this rally is to have legs.

While this is an encouraging development, there’s one thing that hasn’t changed at all. With all the focus on Financials, Industrials and Energy recently, Tech seems to have been forgotten a bit, but it’s still by far the best game in town.

These are the registration details for the monthly conference call for Premium Members of All Star Charts.

This month’s Conference Call will be held on Monday June 15th at 7PM ET. As always, if you cannot make the call live, the video and slides will be archived and published here along with every other live call since 2015.

Here are the details for Monday:

From the desk of Tom Bruni @BruniCharting

Thanks to everyone who participated in this week's Mystery Chart.

Some of you were sellers of this failed breakout, while others were anticipating a move back to new highs after this brief correction, but staying patient and waiting for confirmation first before entering.

It was a mixed bag overall, so let's get into what it was and what our interpretation is.

Since early March we've been highlighting the many signs that pointed to the Rupee's longer-term weakness.

Today, we want to check in on our broader thesis and outline why that weakness may accelerate soon.

The Nifty Pharma sector has been a favorite of ours since last November, with many trade ideas popping up along the way.

Today, we're doing a deep dive into the sector to identify the strongest names that we'd want to be buying on any weakness that may be created by the Nifty 50 and other major indices reaching overhead supply.

From the desks of Steve Strazza @Sstrazza and Tom Bruni @BruniCharting

In this post, we're going to share 10 of the most important charts we're looking at right now. Some are merely for observational purposes or to highlight some of the broader trends at play in the markets while others are trade ideas in some of our favorite names and areas.

Let's dive right in. Here they are.

In a recent post on Chinese Internet stocks, the team laid out the bullish case for why many of these names look set up to run. Since publishing this post, many of the names discussed have indeed begun breaking out higher.

And one of the names with a pretty impressive base is looking like it's about ready to join it's friends.

There are no called strikes on Wall Street. In other words, we're not penalized for not swinging, like you are in baseball. We have the ability to be patient, to a certain extent at least, depending on your mandate. But most of us don't have mandates! Even one of the best hitters of all time struggled when he swung at bad pitches. In this video we compare Ted Williams' batting average when he swung at good pitches, vs when he swung at bad ones.

This is my favorite reminder that in trading & investing, we want to wait for OUR perfect pitch, and then swing, vs just swinging at anything. 

This explanation is taken directly from Lesson 5 in our NEW Allstarcharts Charting School: