Charts to Watch: SPX, BYD, APH

SPEAKER_1 (0:00)

Charts to watch, Brett Crowther is with me, Senior Manager, Trading and Derivatives, Coaching, Charles Schwab, great to see you, Brett. Wanted to take a look, please, at the S&P 500 It's actually tracking for its third straight positive day.

What levels stand out to you on the index, on the charts, please?

Brett Crowther (0:20)

Yes, good to be with you, Nicole. There are a couple levels that stand out on this chart. And so, I think the first one we're gonna look at is the 7800 level, which price action is pushing up against looking to see if it can break above that level. And if it does, that could open it up to a rally. We've been in this channel, I should back up, we've been in a channel between the 76 and 78 for a while, as equities have been facing some headwinds. I mean, they're competing quite a bit more with the bond market with the yields, as you just mentioned, up. I think the 30-year was up at 5.7, the 10-year at 5.3. And so, there's some competition here. However, investors are still liking the equity markets. And if it can break the 78, looking forward to one to the 80, 35

And the good thing about this also is we've seen a lot of stocks break above their 200-day moving average or even their 50-day moving average. And so, we see a lot more market breadth going on today that's helping lift the overall markets and drive it higher. So, we'll look to see if it can break to that level there, technical.

SPEAKER_1 (1:15)

Okay. Next up, let's talk about Boyd Gaming. 52-week lows last Thursday. What are we seeing on the chart and the gaming space overall? What are you watching here?

Brett Crowther (1:26)

We brought up a lot of green arrows. And this is one that isn't in the green arrow arena, right? And so, it seems some challenges here as the stock has dropped from about 92 all the way down to about 68

We can see the blue channel that it was in for quite a while. But then when it broke that, it ran that distance again, which put a target down around the 67, 68 mark. And you can see what the horizontal line in there. That's where it did, in fact, find a balance. Now, sometimes stocks run far enough that people are looking at it as a good sell and pick it up. But this gaming industry really faced some headwinds. We've seen Las Vegas Airport has seen 19 consecutive months of slower traffic.

The middle class is getting kind of priced out. I've only lived five hours from Vegas, and it's getting expensive to drive there. And then also the prediction markets are taking kind of a cut into that gambling arena, right? So what we're looking for here, though, is despite those headwinds, the stock has dropped down. So now it's due for a potential bounce, which we're seeing today. We're looking for it to run back up possibly to the 80 Now it does have earnings coming out in about three weeks. And so we'll see if it can make it up to that 80 before that earnings and see what earnings does, if it can break above that 80 and send it back up to the old highs, or if it looks to drop back down to the 68, Nicole.

SPEAKER_1 (2:41)

All right, and last but not least, Amphenol has had a nice run this year. I know it's October. We still have some more months left, but so far nearly 30% gains. What stands out in the technicals there? APH.

Brett Crowther (2:54)

APH, yes. So APH has had a nice run. It's had a pretty good summer where it took a rally, and then it went into consolidation mode. And the consolidation mode isn't a bad thing. It's just, you know, that taking a breather after a rally. And usually when we see that happen, it'll look to wind up and then pop. And it did, in fact, pop up a couple weeks ago. And so we can see in the darker yellow I drew in a symmetrical triangle. And if we take the width of that symmetrical triangle and add it to the breakout spot, that gives us a potential future target of 101

And so that's what investors will be looking for, or at least technicians will be looking for after that break. However, it doesn't mean that it can just run up there without any headwinds or any concerns. There are some old highs around 88 that it hit back in June, again in August, that it's up against. And so right now we're at kind of that crossroads, right? If it can break above this 88, then we'll see that should open the door for some pretty smooth sailing up that 101 potentially. But if it doesn't, it could possibly come back, maybe do a retest around that 85, 84 area, and then possibly make another rally. And it does have an earnings announcement coming up shortly. But overall, this has been, this stock has benefited from that overall lift in the overall market and helped it push it up against those resistance. And we'll see if it can push it through there. We'll see where it can go from there, Nicole.