Technical Tuesday: SPX, GS & NEE

0:00in Kevin Horner, senior manager, trading services education at Charles Robb is with us and you're looking at the S&P 500 and so are all the folks. What do you see? What are you telling them as far as levels to watch here? Well, I think good afternoon, Nicole is always, you know, I'm love being on with you and the thing we've been talking about is this 20-day moving average that continues to overhang our price action. We love the bounce we're getting this afternoon. Certainly a news-based relief, a bit of a relief rally here. We're happy to get it, but we have to pay attention over the next, you know, remainder of this day, tomorrow and into Thursday, our final day of the trading week. Looking for potential resistance in the ballpark of the 200-day and 20-day moving averages. That's what that oval is highlighting for us is the confluence of those two. So what we're witnessing is the 20-day moving average sloping downward through the 20, the 200-day, excuse me, and acting as potential resistance for any bounce. We do have the former horizontal support

1:02that comes in right above us at 65-40. We might find ourselves taking a brief pause there, but you know, it all kind of depends on the potentially news headlines here, but 24 consecutive sessions below the 20-day moving average. So we're in that five-week window. We would obviously like to get above it, and yet I'm still a little dubious and concerned about the bounce. I want to see price action through the 200-day. I want to see some support held, maybe some higher lows in the short term, just to kind of validate the idea that this could be bigger than just a relief bounce. I think that's what we're ultimately looking for here. So maybe a little bit of excitement, and yet patience here over the next couple of days. That's right, and whether or not the war ends. I mean, that's part of the elation today on Wall Street, and you know, the town was up 1100 points, basically. So right now we're still up 985 points, and we've had guests on who like

2:02financials, and I know that April's coming, and we're going to kick it off with the financial earnings and Goldman Sachs' on your read. Or tell me about that name. Sure thing. So the group here was struggling, obviously. They've made it to correction territory sold off more than 11%. And Goldman pulled back and found support here at the 200-day moving average, which is of course one of those key areas, key levels from a trend standpoint, that bullish traders will look to for adding to potential, either starting a new position or adding to an already winning position. And you can see the candle we're getting today off the 200-day looks fantastic at this point, because of course the optimism we're following through with here this from this early morning. So you know, this is a possible, again, a situation where we might be looking at a rally and a short run may find resistance. In this case, near the 50-day moving average, bulls are probably watching that 880 level above us for a short-term target, maybe to take some profits depending on how

3:03they position themselves here. But a longer-term investor might very well be happy to have exposed themselves to some Goldman position with this recent consolidation in the neighborhood of the 200-day moving average. Basically, there's been action between 780 and 800 validating short-run support. So, you know, many a trader, I'm sure, has been looking to add given this move. But the candle today is certainly going to give bulls some optimism over the coming couple of days. And again, I'm just going to remind us that, you know, we have undergone a pretty significant drawdown on big headline risk. Let's not allow one day's action to dissuade that headline risk from staying in the forefront of our minds. I think it's just very important. Yeah, I mean, I was just looking at the months of dates and the Russell, they're all down over a 5% just this month of March. That's a big move, you know what I mean? And even though Russell's managing to squeeze out a small game, your to date, it's been a tough, tough quarter

4:06for stocks. And as you said, one day certainly doesn't make it a bull market here. We've been selling off five weeks in a row. Let's see what happens, right? We sell a few more trading days. Yeah. And then you have an extra energy. Tell me about that. So, you know, in this one, what it was as I was trying to look for positions in groups that could continue to produce for traders under this new concept that may not new necessarily, but this belief that maybe what we're looking at are elevated rates for longer. And when I pulled up utilities, this one really jumped out at me, not because it's already made a move, but because it hasn't yet. What we're looking at over the last month has been really consolidation as we allow the 50 day moving average to rise. And if you're looking into this space to expose dollars, well, that rising 50 day is kind of an area of comfort once again for traders. Now, what's notable to me is we have this great range that it broke out from. It made the measured move, the height of that range it was in when it broke out to the upside. And so, after making that range,

5:11it then pulled back held levels of short run support. So, the give back has been very limited from the peak to the lowest, lowest made in the drawdown here, less than 7%. So, with this is offering, if nothing else is a comfortable spot for maybe bulls to put a new position on. And if not, if it doesn't hold the 50 day, well, then the area beneath us that becomes important is the breakout level at 86. It's not at all uncommon for a breakout to come back to test the breakout level. So, traders need to be prepared and plan out any trade they're thinking about establishing on the long side here. It is possible to hold the 50 day short, but it's almost as possible that it could get thrown back to that breakout ledge for maybe a better entrance price. So, as always, have a plan and then trade the plan that you have for yourself. All right. Well, thank you for all of that. And look, folks have to stay nimble in this environment where you've seen a lot of volatility. We've had the VIX above 30. You've had the 10-year bond yield above 4.4%. Oil, you know, soaring with records. So, continue to watch. But as we noted,

6:17this has been a tough month. I think a lot of folks are going to be happy to get rid of quarter one. Ah, Kevin Orner, thank you.