The May 16 2023 Indices to Watch Report is ready! Turbo Trading's Robert Knight, MBA, covers $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 May 16, 2023
SPX: The index continues to consolidate in a range between 4050 and 4200. It remains in a rising channel but is mid-channel so could go either way on the short term It needs to get through 4200 to show continuation. Chart remains bullish.
NDX: The index remains in a strong rising channel and is starting wave 5 of a 5-wave move to the upside breaking out over recent highs. This move should take the index to 13,720. Support 13,200. Chart is bullish.
DJIA: After making a V bottom right-hand extension pattern, the index continues to consolidate in a range between 32650 and 34300. It needs to get over 34300 to show continuation. Chart remains bullish but is in a sideways pattern for now.
DJTA: Trannies are in somewhat of a negative divergence pattern to the other main indices. It needs to hold key support around 13300. It is coming into the apex of a wedge pattern so could go either way on the short term. Chart is neutral overall.
IWM: The Russell 2000 ETF continues to consolidate in a sideways pattern the past year. Currently, it is in a narrow range now between $170 and $180. 200 dma is around $181 (key resistance as well). The broader market is not giving any direction to the state of the market.
FAS: The financial sector remains under strong pressure. Currently, it is forming a bear wedge. Support around $50 with key resistance between $65 and $67. It needs to hold $50 or it is going much lower. Technically the chart is bearish.
LABU: After double bottoming around $4.25 the biotech ETF is now in a rising channel. But it is in an area of large overhead resistance. Support now around $6.15. $8.25 is the next target if it stays in this rising channel. It is a massive consolidation pattern. Should it ever get through $9.35 and that would signal a major break out and probably the start of a big bull market for biotechs.
SMH: The semis are in a consolidation pattern for the past 4 months. They are trading in a range between $117 and $128. But they do remain in a rising channel. It does need to break out over $128 to show continuation. Below $117 would be very bearish as that would break the neckline of an H&S pattern. Technically, the chart remains bullish.
GUSH: So far the oil E&P ETF has held the $100 support level. Resistance $112 and $124. The ETF remains in a down-trending channel but is mid-channel so could go either way on the short term. Over $124 may show a change in direction for the ETF but for now the chart remains bearish.
NUGT: The senior gold miner ETF double topped at $53 and was hemmed in by the declining tops line on the daily. It has key support at $43. A break below $43 would be bearish as it violates the double top neckline. Over $53 and look for an extension to $59 and $62. Chart is bullish for now.
Technical Indicators: The broader markets continue to consolidate with 43.6% of stocks above their 50 dma and the McClellan Oscillator at -12.3. But the megacaps are showing complacency with VIX remaining under 20 for the past 6 weeks. The technical indicators are re-enforcing the index chart patterns in a broad consolidation. Whichever way the next catalyst pushes there is lots of energy for stocks to move in that direction.
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