Indices to Watch Sampler August 15 2022
When the New York Stock Exchange opens on August 15, 2022, what might happen to the markets? Turbo Trading's Head Trader Robert Knight offers this sample Indices to Watch Report, which covers the major stock indexes. 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 August 15, 2022
SPX: Markets are "melting up" After a major 5 wave move down into bear territory the index made a V bottom right-hand extension pattern. It is now in wave 5 of the 1st wave up of the new bull market. It closed above 4265 resistance. Next level will be the 200-day m.a. around 4330. Then 4370. Markets are overbought though so look for a wave 2 pull back when the index gets close to the 200-day m.a.
NDX: After declining 35% from the highs, the index made a reverse head and shoulders pattern and reversed. It has broken through the neckline and up against resistance at 15570 area. Bigger resistance at 14000 (big round number and 200-day ma). Support 13000. Chart is bullish.
DJIA: The Dow has broken out of a long-term down-trending channel. It also made a reverse head and shoulders pattern and traded through the neckline. It is up against the 200-day ma and lateral resistance at 34000. Expect a pullback/consolidation to 33000 before it carries on.
DJTA: The Trannies double bottomed at 12780 area and is in the 5th wave of a 5 wave pattern (but just the 1st major wave). It traded up through the 200-day ma and is approaching resistance at 15500. Look for wave 2 pull back. It needs to hold 14500.
IWM: The Russel 2000 ETF has broken out of a long-term down-trending channel. It is up against the 200-day ma. Big overhead resistance at $205 and $210. It is a 20% move of the lows so with markets extremely overbought look for a pullback/consolidation. Support $196 and $191.
FAS: The financial sector ETF double bottomed at $57 area. It has now broken out of the down-trending channel. The 20 ema is crossing up through the 50 (bullish). Lateral resistance and down trending channel line around $92. Look for a pullback to $80 for a swing trade entry.
LABU: The biotech ETF double bottomed around $4. It has now broken out of the down trending channel and broke out of a basing pattern between $8 and $10. Resistance now at $13, $15 and $17. Support $11.50. Chart has turned bullish.
SMH: After nearly pulling back 40% from its highs the semis formed a reverse H&S pattern and broke through the neckline and out of the down trending channel. Big resistance at $250 and $260 (200-day ma). Support $237 and $225. It probably needs to pull back/consolidate for a few weeks before it has the energy to break out.
GUSH: The chart is neutral after a 50% retracement. Support $156. Resistance $180 and $190. Mid-range, so the ETF could go either way.
NUGT: The gold miner ETF made a 5 wave move down and formed a reverse H&S pattern. Neckline around $35. Big resistance at $41. Chart remains bearish until it breaks the neckline.
Technical Indicators: Markets are approaching an extremely overbought reading. 80.76% of stocks are above their 40 day ma and the McClellan Oscillator sits at 177.74. VIX is bullish just under 20. There is broad participation in this "melt-up". But the market will start to run out of energy and unlikely to get through the 200-day ma on many of the indices. Look for a 2 week period of pullback or consolidation. The bull is alive but just needs a breather.
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