CAT generated a strong short-term negative statement this past week, having dropped from 255.70 to 225.80 (11.7%) and in the process, making a new 3-month intraweek and daily closing low. The stock closed on the low of the week, suggesting further downside below 225.80 will be seen this week. There is minor to perhaps decent support at 225.56 but below that, there is nothing until 211.36 is reached. In addition, a drop down to that level (225.56) will make it a multiple low, meaning it should be broken. The 211.36 support does include the 200-day MA, currently at 212.05. The stock shows a breakaway up gap at 221.79 that should be closed as there is no reason for it to stay open. It also needs to be mentioned that there is now a breakaway/runaway gap formation to the downside in place, meaning that the runaway gap at 240.61 should not be closed until the fundamental picture turns bullish again. The chart does suggest that the bears are going to attempt to reach the 200-day MA (at 212.05) this week or next and that some type of bounce from there will likely occur (probably back up to near the $240 level. This means that I will likely be covering the shorts (and taking the loss) on such a move down. That is not yet set in concrete because if the CPI report comes out higher than expected and the index market takes a sharp turn down, this stock could still get down to the $180 level over the next couple of months. For now, the probabilities favor the bears.

DOW made a new 2-month intraweek, daily and weekly closing low and closed at the low of the week, suggesting further downside below last week's low at 53.32 will be seen this week. This area does have importance as a support level, given that the 200-day MA is currently at 53.03. It is also important to note that the stock shows a breakaway/runaway gap to the upside formation with the runaway gap being at 52.98. It that gap gets closed, the breakaway gap at 51.15 will be targeted for closure. The stock did generate a sell signal on the daily closing chart, having broken the previous low daily close at 56.60. In addition, a failure signal against the bulls was also given when it closed below a previous high daily close at 56.11 and a previous high weekly close at 55.88, meaning that the uptrend is officially over. The question that will be asked this week is whether a short or midterm downtrend has begun or whether the stock will trade sideways for the next month or two. The $53 level will be the deciding factor. A weekly close below 53.02 will mean the stock is in a downtrend and that the November lows at $50 will highly likely be seen and perhaps even the October lows down around the $44 level. For now, only a drop down near the $53 level can be counted on. To the upside, any daily close above 56.11 would give the short-term edge back to the bulls.

ENG generated a new 3-year intraweek and weekly closing low and closed on the low of the week, suggesting further downside below last week's low at .63 will be seen this week. The next support is not found until the .52 level is reached and the next important support is at .46. There was no news to support this additional drop other than the fact that the company was supposed to announce earnings on Thursday and no announcement was made. Perhaps that was the reason for the drop. In looking for fundamental information as well as coverage of the stock, I was only able to find 1 company that is covering the stock. That company has a buy rating with an objective price of 5.50 for 2023. Other than that, I could find nothing else. The chart outlook is negative right now and there is nothing that can be said about holding on to the stock other than this stock has done something like this for a total of 8 times over the past 15 years. Those occasions were all the same as what is being seen here, which was to be under consistent sell pressure and then spiking up in a big way over a period of a few weeks. Awaiting information about when the earnings report comes out is what I will be doing this week.

PLNHF once again did nothing of consequence this week. As such, the same levels as stated last week (.81 to 1.05) continue to be possible trigger points. There has been no new news and no news is scheduled to be released any time soon. The volume continues to be very low but the stock did see some action this past week as it went above the previous week's high and then reversed to close red and on the low of the week, suggesting further downside below last week's low at .83 will be seen this week. As such, this week could be indicative given that the established support for the past 9 weeks is at .81.

SHOP generated a negative reversal week, having made a new 2-week intraweek high and then reversing to close red and near the low of the week, suggesting further downside below last week's low at 40.52 will be seen this week. The bulls had been able to get above an intraweek resistance level at 45.06 as the high for the week was 45.98. Nonetheless, the pivotal weekly close resistance level at 43.40 ultimately held up as the stock closed at 41.46, suggesting the bulls failed and new selling is likely to be seen. If the recent intraweek low at 39.02 is broken, there is no support below until 34.38 and then pivotal at 32.35. The 200-day MA, currently at 36.34 will likely be a magnet this week. Any daily close this week below 40.10 will be confirmation of this outlook. Any daily close above 43.40 would negate the outlook.

TXT generated a strong down move, having dropped 8.5% from the previous week's high and making a new 6-week intraweek and weekly closing low. The stock closed on the low of the week and further downside below last week's low at 68.75 is expected to be seen this week. The stock did generate a sell signal on the daily closing chart, having closed below the low daily close for the past 6-weeks at 72.53 and a failure signal on the weekly closing chart, having closed below a previous and important high weekly close at 71.71. Any red daily close on Monday will give the bears additional ammunition as there was decent established daily close support at 69.28 that technically got broken on Friday with at 69.26 close. The 200-day MA, currently at 66.83 is the objective for this week. Any daily close below 66.38 on Tuesday (or any other day thereafter) would open the door for a further drop down to at least the 63.55 level. Any weekly close below 67.85 would put the stock back into a short-to-midterm downtrend. Any daily close above 73.06 would give the bulls the edge back.

VET generated a negative reversal week, having gone above the the previous week's high but then closing red and in the lower half of the week's trading range, suggesting further downside below last week's low at 73.25 will be seen this week. The company did report earnings on Wednesday evening and they were better than expected, meaning that is what caused the new 14-day intraweek high to be made. Nonetheless, the bulls failed to confirm the breakout on the daily closing chart and that means that the bulls need to do more this week to establish that no further downside below the recent low at 12.90 will be seen. A drop below last week's low at 13.25 but not breaking below the 12.90 level, and then going above this coming week's high next week, would mean that the 12.90 low has been tested successfully. The 12.90 low is also very important as it would mean that the 200-week MA, currently at 12.58, will have been tested successfully. Any daily close above 14.13 would now be a signal that the downtrend is over.

ZLAB generated a new 9-week low and the stock did close on the low of the week, suggesting further downside below last week's low at 32.38 will be seen this week. The gap up at 33.94 was closed and a new sell signal was given on both the daily and weekly closing charts, having closed below 35.84 (weekly) and 35.56 (daily) on Friday (closed at 32.68). There was no new news on the company to support this drop, meaning that it was not only chart oriented but likely based on the Chinese and U.S. markets having a down week. The action seen did change the chart for the short-to-perhaps-the-midterm to being in a sideways market (likely between $30 and $50 for the near future. Nonetheless and unless the bears can generate a weekly close below 30.76, the outlook for the future remains the same. Simply stated, the action this past week was more of a delay in the positive outlook for the future than any negative change of consequence. I would venture to say that the stock will get down to the 31.72 level (daily close support found there) and then turn around and begin a new rally. Any daily close above the 200-day MA, currently at 36.95, would negate this drop and give the short-term edge back to the bulls.