Charts to Watch: SPX, COIN, GOOGL

Nicole (0:00)

Welcome back to The Watch List. We're so glad you're with us. It's time for Charts to Watch. Joining me right now, Kevin Horner, Senior Manager, Trading Services, Charles Schwab. So we're watching the S&P 500, trying for its first winning day this week. It's had a bit of a tough time for the month. It's just under the unchanged line, a little bit weaker, but obviously for six months, it's had a great run. What are you watching when it comes to the levels of the S&P 500 right now, Kevin?

Kevin Horner (0:25)

Well, you know, Nicole, usually I come to this session and we have a chat about 50-day moving averages and 200-day moving averages and the like. And I just figured now might be an opportunity to drill in a little more shorter term in nature. And that's what I've got here, a 90-day, four-hour candlestick chart, highlighting the most important areas in the short run here. I think bulls were really pleased with the broken downtrend line we got this week, or late last week, I should say. And we've held that breakout over 76.25, but we've not gone anywhere. I feel like the resolution is coming possibly as soon as today's after hours with when we hear from Micron, but what we're really watching is 76.25 to the downside, a potential support zone for us. Above that, everything remains optimistic and bullish. Under that, increased risk for a deeper pullback, potentially down to that 7,500 level and then below that, possibly 7,300. So I think it's incumbent on us traders to make sure we know those important levels where maybe our tolerance for risk changes a little bit. I think initially, the bottom of this little breakout level where we've basically held over the last two days at around 76.5 is very important. Under that, 76.25 and then 75 And I think if we're just diligent in our strategy and approach, if we monitor those levels, we're gonna get some insights from the market as to whether we've got more upside in the short run or potential for deeper pullbacks.

Nicole (1:55)

All right, thank you for that, Kevin. Let's turn our attention over to Coinbase. And even though over six months, it's higher by about 7.5%. And we've seen obviously Bitcoin moving higher. So that helps Coinbase. But what with the big picture though, it's under pressure. One year down 44%.

What stands out in the technicals here to you when you look at this?

Kevin Horner (2:15)

It's really, as you said, Nicole, a very nicely improving look at Bitcoin and a couple of proxies, whether you're thinking about strategy or Coinbase. You had big moves nicely off of lows as it relates to Coinbase at least, a broken downtrend, rallied into 210 resistance, and then pulled back to now the 200-day moving average. So we've spent two weeks breathing essentially, or maybe a week and a half, and holding the 200 could give bulls a little bit of confidence here. But pay attention to that zone above us. So first of all, that zone between 210 and 230, if we move to new highs through 210, that gives us some room to run. What I like about that, if you look at the node in volume that occurs at around 210, you can see that that node of volume just erases as we get into this gap zone, of course. So that provides us with potentially an area for a momentum-based move through 210 up to as much as 230 or even higher. But I think that that's ultimately what we're waiting on. Can we get any validation of support at the 200-day moving average? Too early to tell just yet. But if you're looking at it from the Bitcoin side, maybe Bitcoin can be the leader to your view on Coinbase here. So Bitcoin building out a little bit of a bull flag as well. And if the optimism in technology and risk on assets takes hold here this week, then this might be one of those positions that benefits.

Nicole (3:42)

Okay.

Last but not least, let's talk about Apple Alphabet. What a great run it's had over one year, right? 40% gains. What catches your eye here? The stocks at 349 today. What on the chart stands out?

Kevin Horner (3:55)

Really just a casual year so far for Alphabet, right? 11% up year to date. But what you're going to see on this chart is a tightening of all of that action. We have really built out a consolidation pennant or triangle over the last five, six months here. And while price hasn't really gone anywhere, it's giving us levels where we can make changes to that viewpoint. So bullish traders, of course, you want to get over $3.35 or so. If you could get $3.35, by the way, would be a new short-term high over the last two months. That would be a positive and significant development. But ultimately, you want to take out that downtrend line for bullishness. And we have an improving relative strength index below, an improving MACD down below as well.