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S&P About To Break October Swing High

Published 10/25/2022, 02:52 AM
Updated 07/09/2023, 06:31 AM
NDX
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US500
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DJI
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US2000
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A good start to the week has indices ready to sweep past the most recent swing high from October 5. The first index to attempt this will be the S&P 500. It's ideally positioned to make that break today, which would not only take out the swing high, but also break through declining resistance from the August high.

SPX Daily Chart

There is a clue as to what may happen here.

And that clue is the Dow Jones Industrial Average. It has long since cleared its October 5 swing high, and has now managed to close above its 50-day MA. Things will get very interesting if it is able to challenge the early September high around 32,500. But if you are looking for a bullish precedent, this index is it.

INDU Daily Chart

The Nasdaq is lagging behind Large Cap indices, but yesterday's buying did rate as accumulation, although other technicals (particularly relative performance to peer indices) remain bearish.

COMPQ Daily Chart

My favourite index, the Russell 2000, had a bit of a quiet day, although it did add a small gain yesterday. There was no accumulation like the Nasdaq, and it isn't yet challenging the October 5 high, but it's likely to do so before the week is out.

IWM Daily Chart

For today, keep an eye on the S&P. If the index can break through it would essentially translate all trades from October into profitable long trades. It's looking November will be a good month for buyers.

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