August Begins With Positive Weekly Charts For 5 Major Equity Averages. Here’s What’s Key To The Upside This Week.

All five major equity averages have positive weekly charts. All are above their five-week modified moving averages with rising or overbought 12-week stochastic readings.

The Dow Jones Industrial Average is above its five-week modified moving average at 25,959 with its 12-week slow stochastic reading rising to 73.72 on a scale from 00.00 to 100.00. It is also above its 200-week simple moving average at 24,252. The Dow has weekly and monthly value levels at 24,977 and 23,620 with quarterly, annual and semiannual risky levels at 27,131, 29,964 and 31,002.

The S&P 500 is above its five-week modified moving average at 3,147.5 with its 12-week slow stochastic reading rising to 88.44. This is nearing the 90.00 threshold, which would make the index enter an inflating parabolic bubble formation. Its above its 200-week simple moving average at 2,720.6. The S&P has weekly, quarterly and monthly value levels at 3,127.4, 3,101.6 and 3,027.6, respectively, with semiannual and annual risky levels at 3,442.1 and 3,466.5.

The Nasdaq Composite is above its five-week modified moving average at 10,161.6 with its 12-week slow stochastic reading slipping to 89.35 just below the 90.00 threshold when the index was in an inflating parabolic bubble formation. It’s above its 200-week simple moving average at 7,384.2. The Nasdaq has monthly, annual, and semiannual value levels at 10,072, 9,352 and 9,202, respectively, with semiannual and weekly pivots at 10,639 and 10,736. The Nasdaq set its all-time intraday high of 10,839.93 on July 21 and its semiannual pivot is 10,639.

The Dow Jones Transportation Average is above its five-week modified moving average at 9,427.25 with its 12-week slow stochastic reading rising to 79.22. It’s above its 200-week simple moving average at 9,944.92. Transports set its all-time intraday high of 11,623.58 on September 14, 2018. Its quarterly, weekly and monthly value levels are 9,380, 9,046 and 8,421, respectively with semiannual and annual risky levels at 12,169 and 12,755.

The Russell 2000 is above its five-week modified moving average at 1,431.92 with its 13-week slow stochastic reading rising to 76.55. It’s just below its 200-week simple moving average at 1,489.49. The small-cap index set its all-time intraday high of 1,742.09 on August 31, 2018. Its weekly, quarterly and monthly value levels are 1,368.71, 1,330.07 and 1,268.60, respectively with semiannual and annual risky levels at 1,829.72 and 1,910.58.

The key to the upside this week is whether the Russell 2000 can breakout above its 200-week simple moving average at 1,489.49.