What might happen after the opening bell on the New York Stock Exchange on Monday, February 27, 2023. In this report, Head Trader at Turbo Trading, Robert Knight, has posted his analysis and predictions of the major indices. His sample Indices to Watch Report appears below. It covers the major stock indexes including $SPX, $NDX, $DJIA, $DJTA, $IWM, $FAS, $LABU, $SMH, $GUSH, $NUGT, 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 February 27, 2023
SPX: The SPX continues to sell off touching down to support around 3950 on the rising channel line and the 200 dma. Below that and 3900 is next. With technicals reading oversold, there may not be enough energy to see stocks drop further. I would expect a bounce from this level as we see wave 5 of a 5 wave move to the upside.
NDX: The index failed to break out over 13000 and pulled back to 11900 support (200 dma). The 50 ema is crossing up through the 200 dma (bullish). But the chart is neutral on the short term and could go either way.
DJIA: The Dow is in a consolidation range between 32590 and $34300. The 200 dma is 32360 area. The chart is bullish but it needs to hold the 200.
DJTA: Trannies formed a reverse H&S pattern and broke out through the neckline. Support/resistance around 14690. The 200 dma sits around 14200. It appears to be in the 4th wave pull back of a 5-wave move to the upside. Key resistance at 15300 area. Chart is bullish.
IWM: The broader market ETF IWM traded to key resistance near $200. It has pulled back to find support on the 50 ema. The 200dma is turning up (bullish) and the 50 has crossed through it (bullish). $180.85 key support for now. Chart is bullish.
FAS: The financial sector ETF failed to break out through key resistance at $92. It has pulled back to the trend line support around $79. Below that the $200 dma is next support around $75. Overall the chart is bullish but we would want to see if hold support at these levels to remain bullish.
LABU: The biotech sector remains weak. It is coming down to test key support around $6. Failure there and $5.25 is the next level. Chart remains bearish.
SMH: The semis made a large reverse H&S pattern, broke out of a declining channel and made a "Golden Cross". This recent pull back looks like a 4th wave pullback in a 5-wave move to the upside. Key resistance around $250. Support $230. Chart is bullish.
GUSH: The chart has turned bearish but it held support at $123 level. It is coming into the apex of a large coiling pattern but I doubt it holds. $108 next support.
NUGT: A dramatic reversal to the downside for gold stocks as the NUGT breaks all of the key support levels in a systematic sell-off. $27 next support. Chart is bearish.
Technical Indicators: 48% of stocks are above their 40 dma and the McClellan oscillator is-112.94. VIX is neutral at 21.67. Indicators are mildly oversold and so we may see stocks bounce off key support here as there is not enough energy to drive them lower. But with strong negative catalysts, we could see markets break support and reach an extremely over sold level before heading higher. We are at a critical juncture here
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