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Technical Review of the S&P 100 Index (OEX)

S&P 100 Index (OEX) – Although OEX is not as popular as the S&P 500 Index (SPX) or the Dow Jones Industrial Average (INDU), it is a key US large-cap benchmark index consisting of the 100 largest stocks in the U.S. by market capitalization. The key criteria for this index are the stocks in the index must have options available for trading and at least 50% of the stock must be available for trading by the investment public.


As of 10/15/21, the top 10 constituents of OEX collectively account for 42.18% of the total market-cap weighting. MSFT (9.00% mkt-cap), AAPL (8.96%), AMZN (5.85%), GOOGL (3.35%), GOOG (3.14%), FB (3.05%), TSLA (2.69%), NVDA (2.15%), BRKB (2.07%), and JPM (1.96%).


Market cap weighting by sector: Information Technology (32.24%), Communication Services (15.07%), Consumer Discretionary (14.11%), Health Care (11.54%), Financials (10.01%), Consumer Staples (6.44%), Industrials (5.03%), Energy (2.27%), Utilities (1.39%), Materials (0.95%), and Real Estate (0.66%).


A potential head and shoulders top pattern has developed in OEX. However, the ability to rebound from key support corresponding to the neckline at 1,950-1,962 has triggered a rebound. Two consecutive gap-ups (10/14 and 10/15/21) reaffirm a recovery to key resistance at 2,048-2,057 or the left and right shoulders. A breakout can lead to a retest of 2,088.53 (9/2/21 all-time high) and above 2,088.53 reaffirms the resumption of the primary uptrend.


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