The Indices to Watch Report by Robert Knight MBA at Turbo Trading has released the Indices to Watch report for 4/17/23. This report discusses $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 17, 2023
SPX: The index remains in a rising channel having broken out over key resistance at 4000 and 4100. The 200 dma has turned up and the 20 ema has crossed up through the 50. Next resistance 4200, Chart is bullish.
NDX: The index is flagging in wave 4 of a 5-wave move to the upside. Support 13000 and 12450. Resistance 13200. Over that should be a wave 5 move to 13740 for starters. 200 dma is turning up and index is in a rising channel. Chart is bullish.
DJIA: The Dow is coming up against key resistance at 34300. Over that level would be a range break out. Support 33450. 200 dma is turning up. Chart is bullish.
DJTA: The trannies are coming into the apex of a large wedge pattern, It is right on its 200 dma. The pattern is somewhat of a negative divergence from the other major indices. At the moment, the chart is neutral and could go either way. 14700 resistance. 13900 and 13685 support.
IWM: The Russell 2000 ETF remains in a large consolidation pattern for the last year between $163 and $190. It is at short-term resistance at $179 (lateral and 50 ema). Support $175. Chart is neutral and could go either way. But if the larger markets continue to trade higher then the broader market should get dragged along.
FAS: The financial sector ETF double bottomed around $50 and now is in a rising channel. Strong earnings on Friday gave the ETF a boost. Resistance at $67 area, then around $73 at the 200 dma. Banks tend to make more money in higher interest rate environments as shown by 1st quarter earnings of the majors. There is a lot of work to do yet for bank stocks to get through massive overhead. Technically the chart remains bearish but it still has lots of room to move to the upside.
LABU: The biotech ETF double bottomed around $4 and now is grinding its way back up. Support at $4.60 now. Resistance $5.25 and $6. Chart remains bearish with massive overhead between $6 and $8.
SMH: The semis are super strong. After making a large reverse H&S pattern the ETF is in a strong rising channel. I think we will see this as wave 1 of the next bull market. Perhaps wave 2 consolidation with key support at $246 and $240. Targets $275 and $290 this year.
GUSH: After a large double-bottom pattern at $100 the ETF has rallied 38% to the top of the declining channel. Key resistance at $145 (200 dma) and $150. With oil trading over $80 and markets trending higher perhaps we will see the ETF break the bear trend. But it is too early to tell if it is a bear rally or the start of a bull trend. Next few weeks should tell.
NUGT: The gold miners double bottomed around $29 and remain in a strong rising channel breaking out through key resistance around $46. Support at $46 and $41. Targets $60 and $64 (gap fill). Chart remains bullish.
Technical Indicators: VIX is bullish as megacaps drive the markets higher. The broader markets are neutral with 42.5% stocks above their 40 dma and the McClellan Oscillator at 60. Overall the condition is bullish as we are above key support and there may not be enough energy in markets to break support. On the short term, markets could test both support or resistance.
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