Technical analysis is becoming a mainstream way to time and predict stock moves and market tops and bottoms. Carter Worth, chief market technician at Oppenheimer, joined the panel to explain what he’s seeing – and where he thinks we’re going.
The stock market is bifurcated, Worth says. There is pronounced and unusual strength in certain parts of the market and equally pronounced weakness in other parts (materials, energy and industrial stocks are unusually strong while consumer discretionary and financial stocks are unsually weak). He points to a chart of BHP Billiton (BHP), the world’s largest minerals company versus Wal-Mart (WMT), the world’s largest retailer. BHP is outperforming WMT at a 130% clip.