Are you looking for an intelligent analysis of the Stock Market Indices for the week starting August 29, 2022? Robert Knight, MBA, Turbo Trading's Head Trader, has published this week's 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 29, 2022
SPX: Powell's hawkish tone on Friday slammed markets. The SPX was down 3.4%. After making a 5-wave move up in wave 1 since mid-July, it is now making a 3-wave corrective wave 2. Support at 4015. Failure there could take it 3900. Short term trend is down but the long-term trend, for now, remains up. Next week will be critical for markets to determine if the nascent bull market is intact.
NDX: The index was down 4.1% on Friday as the "risk-on" trade is reversed. Support 12450 and 12200. It also made a 5-wave move in the 1st wave and a 3-way corrective in the second. It remains in a rising channel but the short-term trend is down.
DJIA: The Dow was down 1000 points on Friday. Support 32000. Even value stocks couldn't withstand the pressure. The Dow components may be more sensitive to a recession as well as it is most likely the recession has already started. Look for it to last the next quarters.
DJTA: Trannies were down 3.9% on Friday. The index made a 5-wave move up after double bottoming in June/July. But now in a 32-wave corrective wave 2. Key support for it around 14000. Next few weeks will be critical to see if the nascent bull can continue.
IWM: The mid/small cap ETF sold off 3.7% on Friday. It had traded up to the 200 day m.a. but failed and reversed. $188 is support, then $183. It is unlikely to hold if the bigger indices continue to sell off.
FAS: The financial sector ETF remains in a down trending channel failing at lateral resistance and the descending tops line at $92 area. It failed to hold support at $78. Next support $68. Financials should do well with rising interest rates but fear of recession sends all stocks lower.
LABU: The biotech ETF sold off sharply on Friday below the $10 support level. It also maybe failing at the rising channel line. $8 is next support. Failure there would not be good for biotechs as it probably trades back to $5 and $4.
SMH: The semiconductor ETF was down 13.3% on Friday trading down to support at $222. Next support levels are $215 and $200. The ETF double topped at $248 but failed to hold key support at the neckline at $227. The trend is now bearish.
GUSH: Oil remains strong and the ETF is in an up-trending channel. But it could not withstand the selling pressure of the overall market. It is mid-channel of a rising channel so could go either way. Support $178. Resistance $200.
NUGT: Gold stocks got slammed, down 9.7% on Friday trading to key support at $26.85. Bullion continues to sell off helping to drag gold stocks lower. ATL is $24.15. Below that level and you may find a trap door at the bottom of the barrel.
Technical Indicators: 54% of stocks are above their 40 day ma and the McClellan Oscillator is at -84. VIX at 25.56. Even though there was a massive sell-off on Friday, stocks are not oversold. Bias is to the downside on the short term. Look for continuation to the downside until markets read oversold.
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