When we covered Johnson & Johnson (JNJ) the other day, we took a look at its relative performance in the stock market: "Some analysts look at relative strength -- the performance of your stock compared to the major averages. A simple way of thinking about this is when it looks like the rest of the market is rallying and your stock is sitting there (a simple way to say underperforming), you have to ask some questions. Maybe JNJ will get in gear on the upside, but today I have some doubts."
In this updated Japanese candlestick chart of JNJ, below, we can see that Monday's candle and today's candle pattern are bearish. A bearish candle occurs when the close is below the opening. On this particular chart, a bearish candle is red.
Prices are still above 50-day moving average line, but its slope is turning down. The volume is low and the On-Balance-Volume (OBV) line has not responded much in the past week or two. The Moving Average Convergence Divergence (MACD) oscillator looks like it is stalling at the zero line.
Bottom line: I continue to have my doubts about JNJ rallying to new highs.