What do the main stock market indices show for the week of 12/27/2022? Turbo Trading's Founder, Robert Knight, has posted his Indices to Watch Sampler for $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 December 27, 2022
SPX: When SPX got to key resistance around 4100, it double topped and failed selling off 8.2%. It had a weak bounce holding 3800 support area. It is now bear flagging. The 20 ema is about to cross down through the 50. Failure at 3800 and we should see 3750 and 3700 for starters. A reversal of 3650 could put in a reverse H&S pattern. Chart is bearish.
NDX: The index failed at the declining tops line and broke down out of a bear flag. The 20 ema has crossed down through the 50. It failed to hold support at 11000. New support at 10685 and then the October low 10440. Chart remains bearish.
DJIA: The Dow traded to key resistance around 34300 and double topped. It has pulled back to the 200 dma. The 50 crossed through it giving a "golden cross". Support 32460 and 32000. Failure under 32000 would be bearish for markets. For now it is a positive divergence as the chart is bullish.
DJTA: The Dow Jones Transportation Average failed to hold above the 200 dma and sold off sharply. It is on support at 13385. It failed to confirm the move by the Dow. A bounce of 12875 could set the pattern up for a reverse H&S. But too early to tell. For now the chart remains bearish.
IWM: The Russell 2000 ETF remains in a strong down trending channel having failed at lateral resistance and the 200 dma. The 20 ema has crossed down through the 50. Support around $168 and then the triple bottom at $163 area. Chart remains bearish.
FAS: The financial sector ETF failed to break out through key resistance at $91. It is back under the 200 dma and 20 ema is crossing down through the 50 (bearish). It remains in a down trending channel. Support $67 and then $58. Chart is bearish.
LABU: Chart is in a bearish descending triangle pattern over the last 5 months. Key support at $6. But the more times it tests it the more likely it goes through it. Under that look for $5.25 to hold. Chart remains bearish.
SMH: The semis made a bear flag over the last 3 weeks and failed. It traded down near $200 support and bounced back to $214.50 resistance. It rolled over to test $200 support. Failure there and $190 is the next level. A bounce of that level could set up a reverse H&S pattern. For now the chart remains bearish.
GUSH: After a sharp sell off in early December the ETF is bear flagging. It is under the 200 dma and the 20 dma has crossed down through it. Look for it to fill the gap at $132. Below that and $121 is next support. Chart is bearish.
NUGT: After making a big bottoming pattern the ETF has moved up through $31 resistance and flagging. Key overhead at $38 and $40. Support $33 and $31. The chart remains bearish. Probably needs to get through $43 to show a change in direction.
Technical Indicators: The McClellan Oscillator has moved back from being oversold to neutral at -32.39. 38% of stocks are above their 40 dma. VIX is neutral at 20.87. The indicators remain bearish in their sentiment as they consolidate their recent pull back. A sell off would not be thwarted by the indicators as they have lots of energy to move in either direction.
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