Indices to Watch Sampler January 30, 2023
For the week starting January 30, 2023, what do the Stock Market indexes show? Robert Knight, Head Trader at Turbo Trading, has posted his predictions. 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 January 30, 2023
SPX: The index has made a large reverse H&S pattern on the daily. It is above the 200 dma and is above the long-term declining tops line. Key resistance 4100. Over that level would be a break of the neckline and a bullish signal indicating a change in direction for markets and most likely the start of the new bull phase of the market.
NDX: The index formed a triple bottom pattern over the last 4 months and now it trading above the 200 dma and through the declining tops line. It is through key resistance at 12100. This break out could be signaling a new bull phase for markets. It is early to call definitively but the chart has turned bullish.
DJIA: At the end of November the chart formed a "golden cross" and is trading up against key resistance. A break over 34300/34600 range would be the start of wave 3 of a 5-wave pattern to the upside. The chart is bullish but the new bull phase needs to be confirmed by $SPX and $DJTA. It is very close.
DJTA: The Dow Jones Transportation Average has formed a large H&S pattern and are right at the neck line at 14700. It is through the 200 dma and broken out of the declining channel. A break out of $SPX, $DJIA, and $DJTA would be a huge Dow theory buy signal. Very powerful. We are very close to a new bull phase confirmation.
IWM: The Russell 2000 ETF never did break the June lows forming a triple bottom. The 50 ema is crossing up through the 200 dma (golden cross) and has broken through the long-term declining tops line. It is at the neckline (key resistance) at $190. Through that level should signal a change in direction for markets into a new bull phase.
FAS: The financial sector often leads markets out of the bear phase and is trending that way now. Forming a cup and handle pattern and approaching the neckline at $92. The 50 ema has crossed up through the 200 dma (golden cross). Chart is bullish.
LABU: The biotech ETF was consolidating for 5 months between $6 and $8. It is starting to trade above the key resistance area. A range break either way should be very strong as is typical with consolidation patterns. If we are entering a new bull phase the LABU should get dragged along. Resistance $9.50 and $11.35.
SMH: The Semis have formed a reverse H&S pattern and broke the neckline at $230. The 50 ema has crossed the 200 dma (golden cross). Chart is bullish. Key resistance at $247 now.
GUSH: The oil stocks are forming a large coiling pattern and is mid-range. On the short term it could go either way. Oil remains strong over $80/bbl. If this is the start of the bull phase for markets we should see continued demand for oil and strong oil stocks.
NUGT: The gold stocks are in a strong rising channel with the 50 ema crossing through the 200 dma (golden cross). Support $41 and $37. Chart is bullish.
Technical Indicators: Strong bias to the upside with the indicators with 76% of stocks above their 40 dma and the McClellan Oscillator at 87.79. VIX is bullish under 20 (18.51). We are neither overbought nor oversold. But markets are building energy to break out through key resistance areas. It is very close to confirming the new bull phase in markets.
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