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The percentage of Stocks in a Bullish Upswing for all Categories are
33% of the Dow Jones is on an Upswing
48% of the S&P 100 is on an Upswing
69% of the Nasdaq 100 is on an Upswing
45% of all Three Indexes Top Holdings is on an Upswing
All the Major Indexes had a Bearish Key reversal Day with Higher Volume than the previous day. This was a sign of Distribution.
Most of the Swing Signals have turned Bearish and are trying to clear up those mixed signals we had with some of our other larger Swing Indicators. Remember what we stated yesterday the larger Swing Indicator was flashing Bearish signals.
I stated yesterday that I need to see the other larger Swing Indicators confirm the Major Market Swing Signal.
The Major Market Sold off hard today on the news that Inflation is still high. The PPI came in higher than expected. The Major Indexes held up for most of the day before they sold off during the final hour of trading. The Indexes are now testing their Key MAs as support
A picture is worth a Thousand Words
Charts updated as of 2-16-2023
Below is a Daily Structural Chart of the Dow Jones Index. Notice it is still trading below the Horizontal Resistance line at 34,243.85 and below the Downward Trending Trendline that has been in place all of 2022.
Price is now once again testing the Support Level at 33,613.03, the price has been finding support at this level for several days.
Look at the Chart Below of the Dow Jones Index with Key Moving Averages. I will be keeping a close eye on this Index which is now testing the support of its 50-Day MA (In Red). If it breaks the 50-day MA (in Red) with strong volume look out below
Below is a Daily Structural Chart of the DIA (the ETF that tracks the Dow Jones Index).
As I stated before this will be the trading vehicle I'm using to follow the Dow Jone Index
We were looking for a break above and Close below the 343.50 Level (the Red Horizontal line) with good Volume before considering going long.
We were also looking for a break below and Close below the 338.70 1st Level then 335.58 2nd Level (red line).
Will today we got a break below and close below the 338.70 1st support level, So we started a position in the DIA. If it continues to sell off we will add to the short position.
A close back above the 21-Day MA will be an area where we are placing our Stop Loss
Below is a Daily Structural Chart of the S&P 500 Index. The price action has broken back below the heavy consolidation area. This area is a strong resistance a break above it is positive. A break back below it will be negative
Let's see how prices react when it approaches the upward-trending internal trendline
Below is a Daily Structural Chart of the Nasdaq Index. The price action is below the heavy consolidation area, This is a strong area of Resistance. A break above the area would be positive and if the price stays below then breaks below the 11,667.49 level this would be negative.
Also, a break below the Upward Trending Internal Trendline will also be negative
DIA - 343.50 Resistance Level and Support at 338.70 & 335.58
QQQ - We are watching for a break below the 5 & 9 Day MA and then a break below the support level on the 65 Min Chart @ 302.20 and the Daily and Weekly Support level at 297.45
Notice the Slow Stochastic fell below the 80 level and had a bearish crossover. Also, the Rate of Change broke below Zero, this is showing momentum may be starting to the downside
IWM - A break below the 21-Day MA. Also Resistance @ 193.50 and support at 188.09 & 187.92
AAPL - Resistance at 154.70 and Support Level @ 150.50 on the 65 Min Chart
Notice that the Slow Stochastic is still above the 80 Level and the Rate of Change is still above the Zero Line. We need to see these Momentum Indicators to break down to get a signal of bearish downside Momentum
Economic Reports
Friday, February 17, 2023
@ 8:45 am FOMC Member Bowman Speaks
@ 10:00 am US Leading Index (MoM) (Jan)
@ 10:00 am CFTC Nasdaq 100 speculative net positions
@ 3:30 pm CFTC S&P 500 speculative net positions
The Bulls and Bears are fighting for control of the Market, but the market is in a Confirmed Uptrend. The Market Breadth is not looking that great
Thank You
Rod
BTA