Turbo Trading's Head Trader, Robert Knight, has released his predictions for the stock market for the week starting December 12, 2022. His sample Indices to Watch Report appears below. It 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 December 12, 2022
SPX: Market traded higher in the morning with economic news and then traded sideways all day. At the end of the day markets sold off ahead of the weekend. Key support at 3900 (50 ema, rising channel line and lateral support). Index failed to break out of a long term down trending channel. Most likely SPX trades lower to 3800 and maybe 3700 as markets start to price in recession.
NDX: NDX is much weaker than SPX. It is bear flagging as it failed to break out of a long term down trending channel. Support 11500 then 11000. Resistance 12175 and 12500. Chart is bearish.
DJIA: The Dow failed at key resistance at 34300 area. Support 33300. The 50 ema has crossed up through the 200 dma (golden cross - bullish). But failure at 33300 would be negative as it would break the neckline of a head and shoulders pattern. Support 32450. Chart is bullish (positive divergence from other indices).
DJTA: The Trannies were looking strong but double topped at 14780 and sold off down through its 200 dma. It is holding support at 13750 area. Below that 13400 is next support. Chart is bearish.
IWM: The Russell 2000 ETF failed at the 200 dma and lateral resistance at $190. It is on support at $178. Below that $175. If it really gets ugly then it could test the triple bottom at $163 area. Chart remains bearish.
FAS: The financial sector ETF failed at key lateral resistance at $92 and is back under its descending 200 dma. Chart remains in a strong down trending channel. Support $67.30. Chart is bearish.
LABU: The biotefch ETF is in a bear wedge pattern. But looking to break down. Key support at $6 and then $5.25. Overhead resistance at $8.25 and $9.50. Chart remains bearish.
SMH: After a 40% move off its October low the Semis are bear flagging just under the 200 dma. Key resistance at $230. Support $214.65 then $203.50. Chart remains bearish.
GUSH: Commodities often sell off as the economy enters a recession and as such, oil stocks are getting hammered. GUSH has dropped 35% since its November double top at $203. It has traded down through its 200 dma and near the October gap fill at $131.93. Under that look for $122 and $109. Chart is bearish.
NUGT: After forming a basing pattern around $20, the gold miner ETF is in a rising channel. Support $34. Resistance $37 and $43. It would be bullish if it can get up through the $43 level. The bullion chart is actually bullish.
Technical Indicators: Markets have a downside bias with 56.17% stocks above their 40 dma and the McClellan Oscillator at -87.88. VIX is neutral at 22.83. Markets are neither overbought nor oversold. As such, failure by indices at keys support levels here will allow markets to trade lower.
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