Indices to Watch Sampler February 22, 2022
What can we expect in the stock markets the week of February 22, 2022? The trading week is shortened by Presidents' Day. Current events such as unrest in the Ukraine/Russia, continuing COVID side-effects and the Interest Rates are impacting the markets. Robert Knight, Turbo Trading's Head Moderator, has published his predictions about the major stock market indices. Note: Paying members get this report and much more. Get a free TurboTrading 1-Week Trial, or become a paid TurboTrading Member to get the Stocks to Watch List. Here's the free sample:
Indices to Watch February 22, 2022
SPX: Political tension in the Ukraine continues to weigh heavy on the markets. SPX is down 10% from its highs in January. But it is below the 200 day m.a. and just above key support at 4300. A double bottom from that level would be healthy. But a break below it would put markets into bear territory with 4150 and 4050 as support levels. 4500 is now key resistance.
NDX: The index is on key support at 14000. Below that 13700 is next. Failure there takes the index down into bear territory to 13000. A double bottom bounce would be healthy. 14400 and 14800 resistance levels now. Chart is bearish.
DJIA: The index has put in a triple bottom at the 34000 level. But it is below the 200 day m.a. and the more times it tests support, the more likely it is to go through it. A break down at this level takes the Dow to 33000 for starters. Resistance at 35000 and 35500. Chart is bearish.
DJTA: The Trannies are in a down trending channel with support at 15000 then 14500 area. It is below the 200 day m.a. Key support at 14000. Markets get ugly if it trades below that. Key resistance at 15500.
IWM: The small cap ETF is in a down trending channel. The 50 day m.a. has crossed the 200. It has broken down out of a 1 year long consolidation pattern. Look for IWM to trade down to $190 for possible double bottom. Below that and $180 and $170 are targets. Key resistance levels at $208 and $211 areas.
FAS: The financial sector ETF failed to hold support at $127. It is mid channel. Support $120 and $112. Resistance $140. It will continue to come under pressure if markets sell off.
LABU: The biotech ETF has broken down out of a bear flag pattern. Next support $15 and $12.65. Below those levels and they will probably roll the ETF back to allow it to continue its down trend. A double bounce of $12.65 could indicate a change in direction. Chart remains very bearish.
SMH: The semiconductor is below the 200 day m.a. and breaking down out of a bear flag. Support $257 and $250. If markets trade into bear territory SMH could tag $220. Key resistance at $276.50. Chart is bearish.
GUSH: Crude oil remains very strong over $91/bbl. But the oil stocks are under pressure from the general market malaise. The ETF is consolidating in a range between $105 and $125. Chart is neutral and could go either way.
NUGT: With fear of war, bullion traded to $1900. As such gold stocks surged out of a trading range between $41 and $51. It traded to key resistance at $60. If war breaks out, gold probably surges and NUGT follows. If peace breaks out, gold could sell off $100 and NUGT would trade back to $40 at least.
Technical Indicators: Only 1 in 3 stocks are above their 40 day m.a. and the McClellan Oscillator is at -29. VIX is bearish over 25 (27.75). Bias is to the down side for markets.
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