Turbo Trading's Indices to Watch Report by Robert Knight MBA was released for April 24, 2023. This report covers $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 24, 2023
SPX: Markets continue to climb the wall of worry with the SPX in a rising channel. The 200 dma is turning up giving longer-term direction. Key resistance now 4200. Support 4100, 4050 and 4000. Chart remains bullish.
NDX: After double bottoming in Oct/Jan the index has made a 3 wave of a 5 wave move to the upside in a rising channel. It is at resistance 13200 and then major resistance at 13700. Support 12870 and 12400. 200 dma is turning up giving good direction. Chart remains bullish.
DJIA: The Dow double-bottomed in October and made a V bottom pattern. Now with a long right-hand extension pattern (bullish). Support 33400 and key resistance 34300. 200 dma is turning up. A range break out would be very powerful for markets going forward. Chart remains bullish.
DJTA: Trannies are coming into the apex of a wedge pattern. It is above its 200 dma and the 50ema never did come down a cross the 200. 13900 key support. 1`4700 and 153300 resistance. Chart is neutral and could go either way. But as the rest of major indices trend higher, trannies should do the same.
IWM: The broader market consolidated for the past year giving a good indication why it is hard to make money this year. It is now in a narrow range. Between $175 and $180. Larger range $170 and $190. Chart is neutral.
FAS: After a severe sell-off during the banking crisis the fincial ETF double bottomed around $50. It now is in a strong rising narrow channel. It is just under the 50 ema and coming up against key resistance at $67. There is a lot of work to do for financial stocks to trade higher, but they typically do better with higher interest rates. But it is too early to call the chart bullish.
LABU: The biotech ETF double-bottomed at $4 and has rebounded to key resistance at $6. There is a lot of overhead resistance between $6 and $8. It probably needs to get through $9 before you could call the chart bullish. But it is a year-long consolidation pattern much like IWM. The longer the consolidation the more powerful a break out it will be. Chart remains bearish.
SMH: The semis remain in a strong rising channel making a 5-wave move to the upside breaking through all key resistance levels. It is on support at $247 (50 ema, lateral support). Below that $233 is next support. Over the long term, this 5-wave move up probably is wave 1 of a 5-wave multi-year move. Chart remains bullish.
GUSH: The oil stock ETF double bottomed at $100 in July22/March23. It ran 40% to the top of a strong down-trending channel. It failed at key resistance and now failed to hold key support. Look for a pullback to $114 and $108. Chart remains bearish.
NUGT: After double bottoming around $29 the gold miner ETF nearly doubled in price with the surge in gold and silver bullion. But it made a H&S topping pattern over key resistance. But it has broken the neckline at $46 Next support $41 and then $38. Chart is bullish long term but could sell off from this level over the next few months.
Technical Indicators: The mega caps are very bullish with the VIX at 16.77. Like the start of most bull markets, it is the "majors" leading markets higher (AAPL, MSFT, META, ISRG, NFLX, NVDA). But the broader market is more neutral as we have seen in the IWM. Markets are neither overbought nor over sold. 45.65% of stocks are above their 40 dma and the McClellan Oscillator sits at -4.36. So, on the short term, markets could break key support or break out through key resistance. A catalyst one way or the other and stocks have lots of energy available to take the catalyst's direction.
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