Indices to Watch March 27, 2023
The New York Stock Exchange will open on Monday, March 27, 2023 to kick off a new week of trading. Robert Knight, Head Trader at Turbo Trading, has made predictions for the major indices. His Indices to Watch Report appears below. It covers the major stock indexes including $SPX, $NDX, $DJIA, $DJTA, $IWM, $FAS, $LABU, $SMH, $GUSH, $NUGT, 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 27, 2023
SPX: Markets opened weaker trading below the 200 dma. But they reversed and trended higher through most of the day closing up .56% on the day. It has moved back above the 200 dma and closed just below the 50 dma. Key resistance now at 4000 and then 4100. Despite the financial crisis sell off the SPX remains bullish. On the short term, it could go either way as it is mid-range between support (3900 and resistance (4100).
NDX: Megacaps with strong balance sheets were the recipients of money flow to safety over the last 2 weeks. The NDX formed a "Golden Cross" at the end of February. It has double topped on the short term around 12880. But a break through that level would be a continuation of wave 3 of a 5-wave move to the upside. 13200 and 13700 next levels. Chart remains bullish.
4-monthDJIA: After a 4-month consolidation between 32600 and 34300, the chart broke down with the financial crisis. It has traded down through its 200 dma. Key resistance is now at 32400 and 32600. On the short term, it is in a down-trending channel and a negative divergence from SPX and NDX. Key support 31500. Chart is bearish.
DJTA: A sharp sell-off on the Trannies with fears of recession looming. It is currently forming a bear flag under its 200 dma. Trannies are trading in sync with the Dow creating a negative divergence with SPX and NDX. Support 13400. Resistance 14200. Chart is bearish.
IWM: The broader markets took the brunt of the financial crisis as banks tighten lending and hoard cash. A strong market needs the free flow of funds to fuel growth. Normally higher interest rates would be bullish for financials but the skew of inverted rates has reverberated through the whole economy. IWM looks like it will test the June/Oct lows around $163. Failure there would be negative for all markets signaling greater weakness throughout the whole economy.
FAS: The financial sector ETF sold off to the Oct. lows at $50. Normally, banks are more profitable with rising rates but a black swan event with SVB has precipitated into a broader crisis for the sector. The ETF is forming a bear flag and looks like we will get extension to the downside to $45 as the financial crisis grips the markets. The 50 ema has crossed down through the 200 dma (bearish). Resistance levels now $58 and $67. Chart is bearish.
LABU: The biotechs continue to sell off in a down-trending channel. Support is at the June lows around $4. Resistance at $5.25 and $6. Chart is very bearish.
SMH: AI is fueling a very strong semiconductor market. After making a reverse H&S pattern the stock broke out through the neckline and is in a very strong rising channel. It looks to be starting wave 5 of a 5-wave move to the upside. Target $275. Support $250 and $230 area. Chart is bullish.
GUSH: The oil stock ETF is down 50% in 5 months and last week broke down through key support at $123. It made a dead cat bounced off the July lows around $100. It failed at resistance and is now pulling back to test that low again. If it fails to hold the triple bottom then $85 and $80 are the next support levels. Chart is bearish.
NUGT: After double bottoming at $29 the ETF is in a strong rising channel coming up against resistance around $41. Through that and $46 is the next level. Chart remains bullish.
Technical Indicators: 19% of stocks are above their 40 dma. The McClellan Oscillator has rebounded from extremely oversold to neutral at -39. VIX is also neutral at 21.74. Stocks are neither overbought nor oversold. The market has energy to go either way up through resistance or down through support.
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