The June 12 Indices to Watch Report is posted and ready! Turbo Trading's Robert Knight, MBA, covers these stock indices: $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 June 12, 2023
SPX: All week the index flagged. On Friday it broke out and tested key resistance at 4300. It sold off with profit taking ahead of the weekend. Traders are probably standing on the sidelines until fedspeak next week. But the index remains in a strong rising channel and statistically, it is up 20% and therefore defined as a bull market. We have been bullish since February so ahead of the curve.
NDX: The index remains in a strong rising channel consolidating just under resistance at 14775. Support 14250. This consolidation looks like wave 4 of a 5 wave move to the upside. Look for wave to take the index to 15200 before the end of July. Chart remains bullish.
DJIA: The Dow is in a 7-month consolidation pattern. It looks to be forming a reverse H&S pattern. A break over 34300 would be very bullish and be a strong confirmation that the bull is well underway. Support 32785 on the 200 dma. Chart is bullish.
DJTA: Trannies continue to consolidate trading above its 200 dma average last week. Needs to get above 14600 if Dow breaks out over 34300 to confirm the bull trend. Chart is neutral.
IWM: The broader market ETF popped out of a 3-month trading range up to resistance at $190. It has moved up through the 200 dma and the 20 ema looks to cross up through the 200. The ETF is still in a broad consolidation pattern for the past year. But we have fanned out the declining tops line 3 times over $190 and through the declining tops line should show new direction for the broader market. It's time for them to catch up to the megacaps.
FAS: After double bottoming at $50, the financial ETF is flagging. Major resistance at $67 (lateral and 200 dma). If it can get through $67 then it probably signals a new direction for FAS. Technically, though, the chart remains bearish.
LABU: The broader markets are showing some life. After double bottoming at $4 the biotech ETF is now in an up-trending channel. It is now finding support at $7 (lateral and 200 dma). Resistance at $7.70 and $8.35. A move out of the year-long consolidation pattern at $9.50 would be very bullish for the ETF and probably show a new direction for the sector.
SMH: The semiconductor ETF surged 20% in 4 days. It then pulled back and held support at $142.65. It is mid-channel of a strong rising channel so on the short term could go either way. It looks like wave 3 of a major 5-wave pattern Expect SMH to test ATH by end of July.
GUSH: The oil sector ETF triple-bottomed around $100 and traded up to resistance at $124. It has broken the long-term declining tops line but needs to get through $124 to show continuation. $138 and d$145 targets if it does.
NUGT: The gold miner ETF double topped at $53 and sold off. It found support at around $35 on the 200 dma. But now it is forming a bear flag. Below $35 and it sells off back to $29. Chart is neutral at best.
Technical Indicators: VIX at 13.83 is overbought and approaching extremely overbought market conditions as reflected by the mega caps. Not surprising with many of the at or near ATHs. Yet, the broader market remains neutral. Neither overbought nor oversold. But bias is to the upside for markets. As long as megacaps don't drag down the market we should see continuation of broader market participation.
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