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The percentage of Stocks in a Bullish Upswing for all Categories are
73% of the Dow Jones is on an Upswing
84% of the S&P 100 is on an Upswing
88% of the Nasdaq 100 is on an Upswing
85% of all Three Indexes Top Holdings is on an Upswing
All of the Major Indexes traded up Wednesday. The Dow traded up .002%, The S&P 500 traded up 1.05% and the Nasdaq traded up 2.00%
A picture is worth a Thousand Words
In our opinion below are the MOST IMPORTANT CHARTS IN THE STOCK MARKET at this TIME
Updated Charts as of Wednesday 2-1-23 Market Close
Below is a Daily Structural Chart of the S&P 500 Index Notice the Price action is now clearly above the Trendlines and Horizontal Resistance Levels. Price is now inside the Blue Consolidation area from June 2022. Also, the Price closed just above the 4110.75 Resistance level. The question is can the price now stay above the 4110.75 level and move through the consolidation area?
Take a Look at the Chart Below its a Daily Structural Chart of the Nasdaq Index. Notice the price is above the resistance (the yellow horizontal line) at 11,667.49. and is now approaching the Red Line at 11,946.54. Which is the bottom of its consolidation area from back in June of 2022. The Question is now can the price move through the consolidation area
Look at the Daily Chart Below of the Nasdaq Index with our Key Moving Averages. The price is now above the 200-Day Moving Average. We will need to see the price continue to close above the 200-Day MA before holding any Long Positions on this Index Overnight, But this is a very positive sign
The S&P500 Index (Weekly) has broken out above the area it was trapped between the 4061.41 resistance level and the 4100.96 resistance Level. This is positive, the question now is can we stay above these levels and they hold as support
The Nasdaq Index (Weekly) closed above the 11,571.64 resistance level and the Internal Uptrending Trendline acting s resistance. This is positive the Question is can these levels now hold as support if so the price can move to the 12,085.85 level next
Look at the Weekly Chart Below of the Nasdaq Index with the Key weekly Moving Averages. Notice that the Price found Support almost to the penny on the Upward trending 4 Week MA (white), 30 Week MA (blue), 40 Week MA (cyan), and 200 Week MA (wheat). This is what you call a strong support level and area of confluence.
Now price is trying to break above the 50-week Moving Average (in Brown). If we can break above the 50 Week MA and stay above it this will be positive
If the Price breaks back below this strong support it can easily trade much lower, because it will take a lot of momentum to break through Long term Weekly Levels (the longer the term the stronger it is).
We will keep an open mind, have patience, stay ready, and play the middle.
Be on the lookout for huge price swings because we are still in earnings season (that's why holding positions overnight can be very dangerous)
Three Big Mega Cap Stocks are reporting after the close on Thursday this can Move the Market (see report below for Thursday)
Economic Reports
Thursday, February 2, 2023
@ 8:30 am Continuing Jobless Claims (This could be a market mover)
@ 8:30 am Initial Jobless Claims (This could be a market mover)
@ 8:30 am Jobless Claims 4-Week Avg (This could be a market mover)
@ 8:30 am Nonfarm Productivity (QoQ) (Q4)
@ 8:30 am Unit Labor Costs (QoQ) (Q4)
@ 10:00 am Factory Orders (MoM) (Dec)
@ 10:00 am Factory orders ex transportation (MoM) (Dec)
Earnings Due
Apple (AAPL) Earnings Due After the Close (This could be a market mover)
Alphabet A (GOOGL) Earnings Due After the Close (This could be a market mover)
Amazon.com (AMZN) Earnings Due After the Close (This could be a market mover)
Friday, February 3, 2023
@ 8:30 am Average Hourly Earnings (MoM) (Jan)
@ 8:30 am Average Weekly Hours (Jan)
@ 8:30 am Nonfarm Payrolls (Jan) (This could be a market mover)
@ 8:30 am Participation Rate (Jan) (This could be a market mover)
@ 8:30 am Private Nonfarm Payrolls (Jan) (This could be a market mover)
@ 8:30 am Unemployment Rate (Jan) (This could be a market mover)
@ 9:45 am S&P Global Composite PMI (Jan) (This could be a market mover)
@ 9:45 am Services PMI (Jan) (This could be a market mover)
@ 10:00 am ISM Non-Manufacturing Employment (Jan) (This could be a market mover)
@ 10:00 am ISM Non-Manufacturing PMI (Jan) (This could be a market mover)
@ 3:30 pm CFTC Nasdaq 100 speculative net positions (This could be a market mover)
@ 3:30 pm CFTC S&P 500 speculative net positions (This could be a market mover)
The Bulls are fighting and the market is in a New Confirmed Uptrend, Market Breadth is starting to get near extremes also forming several Bearish Divergences. The market can top out at these levels. Volume is coming into the market slowly and also forming a Bearish Divergence with the On Balance Volume Indicator. Be Careful
We are in earnings season so we must be careful
Thank You
Rod
BTA
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