👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

S&P About To Break October Swing High

Published 10/25/2022, 02:52 AM
Updated 07/09/2023, 06:31 AM
NDX
-
US500
-
DJI
-
US2000
-

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.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.