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Indices to Watch June 20, 2023

Indices to Watch

The New York Stock Exchange was closed on June 19 for Juneteenth. When the markets open on June 20, be sure to watch these indices! Turbo Trading's Robert Knight, MBA, discusses 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 20, 2023

SPX: The index continues to break through key resistance levels trading to resistance near 4500. 4300 is key support. There is lots of energy for this market to continue as the bull market is well underway. We are neither overbought nor oversold with the broader market. But megacaps, many trading near or at ATHs, could pull back (at worst) or continue to consolidate (at best). I think SPX will pause in here after a strong surge over the last 2 weeks before continuing to trade to ATH by the end of August.

NDX: A massive move since we called the new bull trend in mid-February moving 28%. It traded to key resistance around 15265 before backing off before the long weekend. Support 14475. Look for NDX to consolidate in this area before making a move to ATH by the end of August.

DJIA: The Dow is giving a major buy signal. It is breaking the neckline of an 8-month reverse H&S pattern after double bottoming in Oct/Nov 2022. Value stocks are catching up to the huge move made by the growth megacaps. I think this index is broadcasting that a "soft landing" is the worst-case scenario for the US economy as world economies continue to grow. Chart is very bullish.

DJTA: Trannies broke out to the upside at the apex of a large wedge pattern. It needs to get up through 15250 to confirm the DJIA break out. that would put it through the neckline of a reverse H&S pattern. A recovery of world economies should be good for the trannies.

IWM: The broader market ETF is flagging at the top of the channel of a one-year consolidation pattern. It is above the 200 dma and the 50 ema is just crossing through it ("golden cross"). Over $190 and that will signal a change in direction for the IWM. With the current run in the megacaps (market leaders) signaling a new bull market (up 20%) the broader market will get pulled along. Chart is turning bullish.

FAS: The financial sector ETF continues to consolidate in here under key resistance between $67 (lateral resistance) and $70 (200 dma). A break over those levels should signal a change in direction for the sector. It is unlikely the sector will lag in the new bull market. It has some work to do but look for continuation to the upside.

LABU: The biotech ETF has been in a consolidation pattern for over 1 year. But now it is in a rising channel and trading above its 200 dma. Resistance levels $7.70, $8.50 and $9.50. Over $9.50 would be a major range breakout and very bullish. Unlikely the ETF will continue to lag with the strength of the overall market.

SMH: Such a monster move in the semis from last October (up 87%) and looking to test ATHs. I think this is wave 3 of a 5-wave move to the upside. Most likely it consolidates at ATH (wave 4) before breaking out and continuing higher for the next 2-3 years. Chart is very bullish.

GUSH: The oil stock ETF held support at the $100 level and now consolidating just under $124 key resistance. A break over that level would allow for a move to $140 (lateral resistance) and $143 (200 dma). Over $124 and I will probably put a swing on the ETF.

NUGT: After double topping at $53 in April/May, the ETF pulled back to its 200 dma and seems to be finding support. Below $35 would be a breakdown. Resistance at $44 and $46.

Technical Indicators: The megacaps are showing over-bought with the VIX at 13.54. Under 20 is bullish but around 10 is extremely overbought. History shows, though, VIX can stay overbought for a long time. The broader market is more neutral. The McClellan Oscillator is 49.29 and 64.28% of stocks are above their 40 dma. So the broader market is neither overbought nor oversold. Most likely, markets pause in here with the SPY holding key support at 4300. Markets remain bullish.

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Indices to Watch

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