Charts to Watch: SPX, UBER, KHC

**Nicole Pedoliles** (0:00)
Welcome back to The Watch List. I'm Nicole Pedolides. Charts to watch, that's the time now. And Kevin Horner, Senior Manager, Trading Services, Charles Schwab is with me right now. So we saw the Dow, the Nasdaq and the S&P down for three days. Of course, September seasonality, we think of that, especially yesterday, September 1st. So the S&P's down three days. And now we're seeing some up arrows. We weren't sure this morning. What levels are important to watch?

**Kevin Horner** (0:26)
Yeah, you're right, Nicole. Good to see you as always. Today's move is pretty important on the SPX. We came down with yesterday's low, hit that 76.11 on the downside. The prior highs we were working with, former resistance, potential support, right at 76.20. So the fact that we came down to that level and to this point have held looks a little bit positive for the moment. Now it's still not yet market closed. We got about an hour 10 to go.
So we're looking for a finish today of 76.64 or better. That's gonna give us a close above the high of the low day. If yesterday was in fact our low day in this brief pullback, then that's what we wanna see. We wanna see a potential beginning of a bounce in here. You know, it's still, even though I'm stating that, it's too early. So we're gonna watch the 50 day moving average for weakness below us. But ultimately that's what I think traders are probably watching for, at least today at the close. Can we clear 7664 on a closing basis and maybe give us the opportunity to start looking back again at 7800, from which we've retreated over the last couple of weeks here.

**Nicole Pedoliles** (1:35)
Right, 7800, right? We have to remember that number pretty well. The market breadth is looking pretty good here over the last few hours now. I've seen improvement on the downside. We only have two of the 11 sectors down and real estate's down a half a percent. Nothing in the negative down more than one percent. Where on the flip side, Materials Communication Services are up over one percent, and most of the sectors are in the green today. Can we talk about Uber here, workforce reduction? They're talking about now moving more towards autonomous and AI and things like that. But that's about 10 percent of the global workforce. What stands out on the Uber chart, which is up two percent today?

**Kevin Horner** (2:15)
I think what stands out on the chart for Uber, Nicole, is going to be the bottoming pattern that may have started to turn a corner here. I've drawn in some fairly standardized horizontal resistance, horizontal support levels. It's an interesting structure, if nothing else, because the numbers at least support a very basic viewpoint here. $70 short run support outside of a couple of aggressive moves to the downside that were quickly reversed. $80 resistance, 75 in the mid-range. Our 50-day moving average beneath us at 74 But really, we've held 75 quite nicely for the better part of the last four weeks or so.
And today, moving off of that level once more. Now, we're going to feel a lot better about Uber over $80, where we could validate a potential new short-term high. But I got to point out, look down below, we've got this stochastic crossover happening below the 25 line, giving you kind of a bullish indication for a potential run from here. Whether we get to 80, whether we clear 80, obviously that remains to be seen. But if we do, well, that's where 90 becomes available to us potentially. Just taking the range, if we can clear this $10 approximate range we've been in, dating back to January, February, well, then we could add that $10 to the $80 resistance, if that becomes potential support, and then that allows us to target the $90.
So yeah, it's not been a great move, obviously, from that $100 level up there in the upper left corner about 11 months ago, but we are in the midst of correcting a downtrend, and we could be looking at the early stages of just that.

**Nicole Pedoliles** (3:58)
Okay. I mean, in the downtrend, I mean, the last six months, Lyft has really outpaced Uber. Let's talk about Kraft Heinz. This one's up around 8 percent so far this year. What caught your eye in this stock chart?

**Kevin Horner** (4:11)
Well, so first of all, let me just state, we have staples up about 10 percent year-to-date, but the group of staples hasn't really been moving. It's been in a lengthy consolidation. I was basically looking through a series of individual sectors for stocks that are turning the corner and showing improvement. Well, we got a broken downtrend with Kraft back in May, all the way into July where we bottomed out.