The Indices to Watch Report was posted by Bob Knight, MBA, Head Trader at Turbo Trading for April 10, 2023. The indexes in this report are $DJIA, $DJTA, $FAS, $GUSH, $IWM, $LABU, $NDX, $NUGT, $SMH, $SPX, and Technical Indicators. Note: Paying members receive this report and much more. Get a free TurboTrading 1-Week Trial, or become a paid TurboTrading Member to receive the Stocks to Watch List. Here's the free sample:
Indices to Watch April 10, 2023
SPX: The index is mid-channel of a rising channel so on the short term, it could go either way. Support 4050 and 4100. Resistance 4200, then 4300. 200 dma is turning up. Chart is bullish.
NDX: After double bottoming at the end of the year, the index has made a 3-wave move to the upside. It is on support at 12900. Maybe a pullback here (wave 4) before continuing in a strong rising channel to 13750 in wave 5. Chart is bullish.
DJIA: The Dow is mid-channel of a large 6-month consolidation pattern. The 200 dma is turning up. Support resistance in this 33500 area. It needs to get through 34300 to really show a change in direction. But chart remains bullish.
DJTA: Trannies are coming into the apex of a large wedge pattern and could go either way. Support 13700. Resistance 14700. Bullish above, bearish below.
IWM: The Russell 2000 ETF is in a sideways consolidation pattern for the last 9 months. Support now $170 and $163. Resistance $190. Chart is neutral and could go either way. But if the SPX and NdX continue to show strength it should drag IWM along.
FAS: The financial sector ETF double bottomed at $50. It is consolidating between $50 and $60. The 50 ema has crossed down through the 200 dma (death cross). It has a lot of work to do to recover from the sharp sell-off with the banking crisis. Technically it is forming a bear flag so needs to hold $50 or it is going lower.
LABU: The biotech ETF may have found a bottom here at $4. It is consolidating in a range between $4.50 and $5.25. Over $5.25 look for a move to $6. Chart remains very bearish.
SMH: The Semis are mid-channel in a strong rising channel. So on the short term, it could go either way. Support $246 and $233. The 200 dma is turning up. It looks to have made a 5 wave move to the upside and needs to consolidate at this level probably until the end of April before it starts a new leg up. Chart is bullish.
GUSH: The oil stock ETF double bottomed at $100 and traded up to the declining tops line. It is in a down-trending channel and at key resistance around $130. The 200 dma will also prove as resistance around $150. Chart remains bearish.
NUGT: Bullion is trading at all-time highs so not surprising NUGT is breaking out of the current pattern. It has nearly doubled from the $29 double bottom. A strong market and strong commodity bode well for the ETF. Support $46 and $41. Look for it to fill the gap around $54.
Technical Indicators: The megacaps are bullish with VIX under 20 (18.40). Yet, the broader market is neutral with just 32.79% of stocks above their 40 dma and the McClellan Oscillator at 38.28. If the indicators start to show an oversold reading but only trade sideways that will be very bullish for the next leg up on the SPX.
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