Charts to Watch: SPX, V, GEV

SPEAKER_1 (0:00)

Time now for Charts to Watch. Kevin Horner, Senior Manager, Trading Services. Charles Schwab is with us looking at the S&P 500 Look, we had a four-day winning streak. It looks like it's under some pressure here. Some of your thoughts, we had a record yesterday for the first time since August for the S&P. What levels are you watching, Kevin? Great to see you.

Kevin Horner (0:18)

Yeah, great to see you as always, Nicole. It was a great feeling yesterday. We had that gap move lower today, but bulls have stepped in and tried to defend the level that we fell to intra-period here. And I'm pretty encouraged by it, but I'm also cautious because the move to the upside here basically filled the gap, pushed us into 7805, but we have taken a nice pause at 7805, meaning we just basically stopped that pop and have decided we need more time to decide whether we are moving to new highs here after, or if we've got to maybe pull back further again. Now, it should also be noted intraday to day, this move to the upside in the SPX off of the intraday lows, coincides beautifully with the fall in 10-year yields and the fall in oil. So if a trader were to put all three of these charts side by side, you would see that relationship playing out intraday thus far today.

SPEAKER_1 (1:12)

All right. Let's check out Visa shares. Those were up this week. Well, I have to double check now, but they add up arrows. What stands out in the technicals when it comes to Visa, please?

Kevin Horner (1:22)

Well, Visa made a wonderful move in the last six sessions or so, off of an area that had been previously resistance became support. Calling that the 358 ledge, you can see a volume node right there at that level as well. And most importantly today, we're trying to make a new short-term high, pushing through that 373 It's great to be above the 50-day. It's even better to get a third day where we are extending the rally today. So if that candle today finishes the way it looks, instead of a tail at the top and we get a continuation potentially where we close at this level or maybe even higher, this is going to look more like a validation of support and an opportunity to challenge prior highs in the ballpark of 385 So you know, downside in the short run, maybe the 358 level, but traders that are managing risk under 358 could choose to get defensive on a close below that. But other traders are going to be probably a little bit more optimistic by what we've seen over the last four sessions or so, and certainly could see the opportunity to challenge those prior highs ballparked at 385

SPEAKER_1 (2:29)

Okay, and I can't let you go without talking about GEV or Nova, all time highs over the summer in July, still up over 50% this year. So it's down from the highs, but still showing some gains. Right now it's down 3.5% today. What caught your eye on GEV or Nova?

Kevin Horner (2:45)

So a couple of things, as usual, I like to pull back the curtain and look over a longer window. We have a daily chart, but the weekly chart I should point out is very interesting as well. And it's a great reminder that after moves we get consolidations and pullbacks and we should not be shocked by the time it has taken GEV or Nova to kind of get itself back into gear here. A couple of things that stand out, we had those double tops at 11.95. Both times brought us back to the horizontal support at 8.80. To me, what that tells us is that we have got a very clear horizontal support beneath us that could prove to be tested once more because we've not broken the downtrend line off the last beat, that's the white line that you can see us having kind of paused at yesterday. But under the hood, what I really like on this, I suppose, is the MACD development down below. We're seeing some momentum in the form of the MACD kind of tell us that there is an opportunity for a breakout from here.

And if we can get above that downtrend line, if it's possible, we're going to see some momentum come into this move. So I like what we're seeing. We have the crossover from the MACD down below that happened a few weeks back. Now what you're getting are those histogram bars in the green. That tells us that we've got that strengthening of the trend, even though price really hasn't moved a ton just yet. So it should give bulls a little bit more of an optimistic viewpoint. Trend management can happen anywhere between the 925 level at the 200 day moving average and that 880 ledge of horizontal support.