Indices to Watch July 24, 2023
What do the Stock Market Indices show for the week beginning July 24, 2023? Robert Knight, Turbo Trading's Head Trader, has posted the Indices to Watch report for $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 July 24, 2023
SPX: The index traded up to key resistance at 4600 and reversed. Friday was an inside day for the market. It remains in a strong rising channel. Earning season is upon us and most likely the results from those releases will determine the direction on the short term. Look for 4500 to hold support. Then 4450. Market participants seem to be buying any dip as there is a lot of money on the sidelines. Chart remains bullish.
NDX: The index reversed off key resistance at 16000 (lateral resistance and top of the channel) lead mostly by "by the mystery, sell the history" of some key megacap earnings' reports. 15300 will be key support. The index remains in a strong rising channel and the chart is bullish. Look for NDX to trade to new ATH before the end of the year.
DJIA: The Dow gave a major buy signal last week confirmed by the Trannnies. It traded through the neckline of a 9 month H&S pattern. It traded to resistance at 35900. It could pull back to the breakout at 34600. Chart is very bullish confirming the major bull market we called since February.
DJTA: The Trannies confirmed the buy signal put in by the Dow breaking out through key resistance at 16000. I would expect the Trannies to trade to new highs before the end of the year.
IWM: The broader market ETF broke out of a 13 month consolidation pattern over the $190 area. The 50 ema has crossed up through the 200 dma (golden cross). $200 is the next resistance level. It is the broader markets turn to shine to catch up to the megacaps move from February. The bull market is well under way.
FAS: The financial sector ETF traded over its 200 dma and up to the long term declining channel line. I would look for a pullback to $67 to hold for an entry. It broke out of a C&H pattern last week. There is still a lot of work to do and with key earnings coming out it could influence the direction the ETF takes. You can take some at this level and add on pull backs as the chart, technically, is neutral and could go either way. But with the bull market will under way in many other sectors, financials should catch up.
LABU: The biotech ETF continues lag the rest of the markets. It remains in a large 15 month consolidation pattern mostly between $5 and $8. Over $9.50 would signal a major change in direction for the sector. But for now, buy the dips and sell the rips. Chart remains neutral.
SMH: The Semis tested the ATH last week but then gapped down on key megacap earnings reports. So, not surprising to see a pull back at ATH. On the longer term it is in a major rising channel and mid channel. Shorter term it is also in a rising channel with support around $147. Look for the index to test the ATH again before the end of August and a strong break out to new ATHs as the bull market continues for the next 2 to 3 years at least.
GUSH: The oil stock ETF broke out through key resistance at $123 and up through the 200 dma. Next resistance $138. With the strength of the economy and China talking of re-inflating there should be a strong bid for the commodity. I am looking for a pull back to $123 for a swing trade entry.
NUGT: The senior gold miner ETF found support around $32 and now holding support on the 200 dma. The 50 ema came down to the 200 dma but did not trade down through it and now turning up. But the ETF is mid-range so could go either way on the short term. I think below $36 would make the ETF bearish.
Technical Indicators: The broader market is strong with 74.35% of stocks above their 40 dma showing a strong uptrend. The McClellan Oscillator sits at 41.54, a neutral reading. VIX remains very bullish (and maybe overbought) at 13.6. The markets are rebuilding energy and should hold key levels as they are no longer overbought. Look for the up trend to continue as the bull market remains strong.
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