In today’s briefing:
- Tesla Motors Buy Level for Drive to 255
- Bear Market Rally Continues; Financials/XLF Reversing YTD Downtrend; Small-Caps at 11-Month RS Highs
Tesla Motors Buy Level for Drive to 255
- TSLA (US) shows near term upside that is expected to fade and set up a better entry level below 200 with stiff resistance near the 255 target.
- Macro descending wedge is the dominant driver into 2023 with lower wedge support at 180/160 and upper pattern resistance at 330 currently and will shift lower with time translation.
- Buy volumes on this bounce have tapered off, suggesting this rise is corrective in nature and why our buy target revolves around a new low.
Bear Market Rally Continues; Financials/XLF Reversing YTD Downtrend; Small-Caps at 11-Month RS Highs
- The market remains in bear market rally mode, and our price target remains the 200-day MAs on the SPX and Russell 2000, as discussed in last week’s Compass (Oct. 25).
- Longer-Term, this is still a bear market until the S&P 500 and IWM can break above their respective YTD downtrends/200-day MAs, and markets could easily test their lows again.
- With that said, there are signs that suggest breakouts above YTD downtrends/200-day MAs could be coming. Catalysts include the FOMC announcement on Wednesday, followed by midterm elections on Nov. 8.
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