Broadcasting Bouncing From The Ashes

It's always a good idea to occasionally step back and look at the bigger picture - not just for the major indices, but also for sectors and industry groups.

Over the past several years, it's been a wild ride to nowhere for the broadcasting and entertainment industry ($DJUSBC). We saw several significant lows in 2014 through 2016 in the 900-1000 range. That area was then revisited at the pandemic low in 2020. After more than doubling during the next 12 months, yet another big slide began in 2021:

Enter Dow Jones US Broadcasting & Entertainment Index (DJUSBC):

All of the post-pandemic gains from March 2020 to March 2021 were lost over the subsequent 18 months, when the DJUSBC fell back beneath 1000 yet again in October 2022. We've rallied back to the declining 50-week SMA and the weekly PPO is nearing centerline resistance, so what's the next move here going to be? Well, we know where major support lies. It's just below 1000. To the upside, the 50-week SMA needs to be negotiated. For Walt Disney (DIS) and others in the space, clearing that moving average becomes paramount. And, until it happens, be prepared for potentially more downside.

Happy Trading! Tom Bowley Chief Market Strategist EarningsBeats.com Better Timing. Better Trades.