Indices to Watch Sampler July 25 2022
When the NYSE opening bell rings on Monday, July 25, 2022, what does Robert Knight predict? This sample Indices to Watch Report covers the major stock indexes: $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 July 25, 2022
SPX: Sharp reversal on SPX after filling the gap from the mid-June sell-off. The chart made a 5 wave move down since the beginning of the year. It appears to have made a V bottom, right-hand extension pattern. Most like the lows for the bear market cycle have been put in. The index is above the 50-day ema. It should find support at 3900. Key earning season over the next few weeks should really tell the tale.
NDX: After a 5 wave move down dropping 35% the NDX has put in a reverse head and shoulders pattern and broken out of the down trending channel. It reversed on Friday after trading up through its 50-day ema. Lateral support and 50-day ema at 12,250. Like the SPX, earnings over the next 2 weeks will be key to give the market direction. But it looks like the bottom was put in for NDX.
DJIA: The Dow looks to have made a reverse head and shoulders pattern putting in a bottom for the bear market cycle. It is above its 50 day ema but failed at key lateral resistance of 32000. Support 31,350. Gap-fill at 32,267.
DJTA: The trannies traded up to lateral resistance at 14000 and failed. It is above the 50 day ema holding support at that level. It put in a double bottom at 12,780. Chart is neutral and could go either way.
IWM: The Russell 2000 ETF remains in a strong down-trending channel. It filled the gap at $183.50 and failed. It is near the top of the channel and holding support on the 50-day ema. Support $177 and $175. Chart remains bearish.
FAS: The financial sector ETF made a double bottom at $58 area and broke out of the down trending channel and through lateral resistance at $69. It is up against its 50-day ema and the gap fill is $77.85. I am looking at putting a swing on the ETF over the next week if it holds support. Earnings season will be critical for direction.
LABU: The biotech ETF put in a double bottom at the $4 level. It has traded up to heavy resistance at $10 and failed to get through. Now it is in a trading range between $8 and $10. Bullish above, bearish below.
SMH: The semis look to have put in a reverse head and shoulders pattern and broken through the neckline on the upside. It has filled the gaps from the mid-June sell-off. It is above its 50-day ema. But it is at the top of the declining channel and the chart remains bearish for now.
GUSH: Oil traded back under $100/bbl at the end of the week and GUSH failed at lateral resistance at $140. It double bottomed at $100. I think oil continues to sell off to $80 area. If so, we should see GUSH make the 3rd wave down to test $100 then $90.
NUGT: The gold stocks are very bearish failing to hold key support levels. Maybe we get a 4th wave bounce here before a 5th wave move down to test $25.
Technical Indicators: Markets were overbought at key resistance levels on the SPX and as such profit taking set in ahead of the weekend. Now 51.8% of stocks are above their 40 day m.a. The McClellan Oscillator is 96.90. VIX continues to drift off at 23. It looks as if markets are taking a breather here. They may just trade sideways rather than go lower, especially if earning season is as expected. Perhaps we will see the markets build some internal energy to make the next push through key resistance areas.
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