Indices to Watch Sampler February 6, 2023
What does Robert Knight, Head Trader at Turbo Trading, predict will happen with the stock market for the week starting February 6, 2023? This report covers these major stock indices: $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 February 6, 2022
DJIA over 34300 will be a major Dow Theory buy signal. DJIA, DJTA and SPX have all put in a "Golden Cross". A break out on the Dow will confirm the break out on the other 2 markets. I think it is safe to say, "The bear is dead".
SPX: The index reversed off resistance at 4200 but remains above the break out neckline around 4100. The index has made a reverse head and shoulders pattern and put in a "Golden Cross". Chart is bullish. 4300 next target.
NDX: NDX is weaker than the other indices have sold off much more in this bear market. It has broken out of the declining channel and through the 200 dma. But it was rejected at 13000 resistance. Look for a pullback to 12000 to hold to indicate change in direction.
DJIA: The Dow double bottomed in Oct/Nov and traded to resistance around 34300. It has made a "golden Cross" and now forming a cup and handle pattern at 34300 level. A break over that level will confirm a Dow Theory buy signal. Chart is bullish.
DJTA: The Trannies broke out through key levels after forming a reverse head and shoulders pattern. It also made a "Golden Cross". Chart is very bullish.
IWM: Key break out on the Russell 2000 ETF over $190. It has broken out of a long-term down-trending channel and formed a "Golden Cross". Next resistance around $202. Chart is bullish.
FAS: Chart made a reverse head and shoulders pattern and at key resistance at $92. The chart has made a "Golden Cross". Financials usually lead markets out of the bear phase and doesn't look to disappoint this time either. Chart is bullish.
LABU: The biotech ETF has broken out of a 5-month consolidation pattern. It traded up to resistance at $9.50. $8.50 is support now. Over $9.50 look for $11.35 and $13.35 as targets. With a new bull market underway, biotechs will get dragged higher with the general markets.
SMH: The semiconductor ETF made a reverse head and shoulders pattern and broke out through the neckline at $230 and through key resistance at $248. It made a "Golden Cross". If it holds $248 look for the 5th wave move to the upside to take the ETF to $275 area.
GUSH: The oil stock ETF continues to coil. It is below the 200 dma with support around $137 and $130. Chart is neutral and mid-channel. It could go either way on the short term.
NUGT: The gold miners were slammed on Friday trading down to key support around $37.50. It does remain above the 200 dma and at the bottom of the rising channel. But a further sell-off Monday could negate the bullish pattern it has formed. The next week will be critical to determine direction.
Technical Indicators: 77% of stocks are above their 40 dma which is showing strong momentum to the upside. But the McClellan Oscillator at 59.56 is neither overbought nor oversold. VIX under 20 is bullish. The bias is to the upside and there is internal energy to breakout through key resistance levels on the indices.
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