Indices to Watch Sampler May 2, 2022
At the New York Stock Exchange opening on May 2, 2022, what does Turbo Trading's Head Moderator Robert Knight predict? The article below is his Indices to Watch Report. 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 May 2, 2022
SPX: Sharp sell off Friday takes the index below key support at 4150. This move could be the start of wave 5 taking the index down to bear market territory at 4050 and 3950. It is now down 14.5% from the ATH. Chart is very bearish and a lot of damage has been done to the bulls. Don't try to catch a falling knife.
NDX: The index is already in bear market territory down 23.4% from its ATH. On Friday it broke key support at 13000. Next levels 12650 and 12200. Look for the index to come under continued pressure to the downside.
DJIA: The Dow was fighting the battle but has succumbed to the selling pressure of the markets. Support 32565 and 32000. It is in a down trending channel and well below the 200 day m.a. Look for selling to continue.
DJTA: Trannies are below the 200 day m.a. with key support at 14260 and 14000. Most likely the index tests the 14000 level. Failure there would be very negative for markets (as if it is not bad enough).
IWM: The Russell 2000 ETF failed to hold the triple bottom at $188 breaking down out of a bear flag pattern. $180 and $170 support levels now. It is down 24.5% from the highs but the ETF most likely follows the bigger indices lower.
FAS: The financial sector ETF failed to hold support and traded down to lateral support and the bottom of the declining channel at $84. Chart is bearish. If it fails at $84, look for $74 as the next level.
LABU: The biotech ETF is very bearish as it failed to hold key support and traded to new ATL. It is in a steep declining channel but at the bottom of the channel. We could see it bounce to $11.50 and maybe $14. Most likely it goes to $5 and they roll it back 1:4 or 5.
SMH: The semiconductor ETF is in a strong down trending channel and bounced off lateral support and bottom channel line around $225. Chart is bearish. A failure at $225 and $216 is the next support level.
GUSH: Oil remains strong over $100 but oil stocks cannot withstand the overall pressure of the market sell off. It is finding support on the 50 day m.a. around $156. If oil sells off below $100 look for GUSH to make the next leg down to $135 area.
NUGT: Gold sold over $175 from its highs and NUGT took a double whammy; weak market, weaker commodity. It is on the 200 day m.a. at $55. Below that and $45 is the target. Chart is bearish.
Technical Indicators: Only 27% of stocks are above their 40 day m.a. and the McClellan Oscillator sits at -111.34. Both mildly oversold. VIX is at 33.40. Over 30 is very bearish. Bias is to the downside but markets are not extremely oversold so there is a lot of energy to move markets lower.
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