What might be in store for the New York Stock Exchange for the week starting 3/20/23? The Indices to Watch Report by Robert Knight, Turbo Trading's Head Trader, discusses the major stock indexes, including $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 March 20, 2023
SPX: The index makes an inside day on huge volume. But the volume can be attributed to the quad witching hour so may not be a true representation. It closed under the 200 dma. Support 3900 and 3800. Chart is in a short-term down trending channel. Chart remains bullish but it is in a precarious position and could swing either. With markets oversold it may bounce in here as it holds support.
NDX: With markets selling off, mega-caps attracted the money surging 8.5%. Friday it corrected with markets. But the index remains above its 200 dma looking like it is starting wave 3 of a 5 wave move to the upside. Key resistance 12900. Over 12900 would be very bullish.
DJIA: Value stocks sold off with markets. It has broken down out of a large consolidation pattern trading down through its 200 dma. It traded back up to it but failed on Friday. It needs to get back over 32600 to maintain the bullish trend. Under 31500 would be bearish for markets.
DJTA: Trannies sold off sharply with markets trading under its 200 dma. It bounced back up to it but failed. Support 13735 and 13365. Further sell-off from these levels would be negative for markets.
IWM: The broader market is under tremendous pressure selling off 2.5% on Friday on huge volume. $170 key support for it. With markets oversold we may see it hold this level. That would be bullish for markets. But a break here takes it to the Jun/Oct lows around $163.
FAS: The financial sector ETF sells off more than 30% in a week on the SVB debacle. So far it is finding support at $50 at the Oct lows. If it can hold that level and panic subsides in the financial arena there will many great opportunities. Probably the most bullish is banking insiders buying their company's shares at a deep discount.
LABU: The biotech ETF continues in a down-trending channel breaking down out of a 6-month consolidation pattern. Support around $4.50 and $4. Chart is bearish but may be near its lows so not a short. Key resistance at $6.
SMH: Semis continue to buck the trend in a strong rising channel. It seems growth stocks is attracting the money, especially with the AI interest. It broke out of a 4th wave on Friday and looks to be at the start of a 5th wave to the upside. Target $275. Key support $230.
GUSH: Oil continues to sell off with recession fears. As such, oil stocks come under tremendous pressure and break down in a combination of low oil and a falling market. It failed to hold key support at $108. Next level $91.65. Chart is bearish.
NUGT: Gold bullion surges on a falling $USD and fear in the markets. NUGT double-bottomed at $29 and up through the neckline at $34. Big resistance around $41. I wouldn't chase it here as it is mid-range. But overall the chart is bullish.
Technical Indicators: Only 18.7% of stocks are above their 40 dma. The McClellan Oscillator is oversold at -149. it did trade down to extremely oversold at -257. VIX is also bearish at 25.5. The bias is still to the downside though it may be limited with markets oversold.
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