This week's Indices to Watch Sampler Report is ready! When they ring the opening bell at the NYSE on November 21, 2022, what does Robert Knight predict about the major indices? This 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 November 21, 2022
SPX: After a strong run up from a new 52 week low, the index is back at the top of the channel. It is in a range between 3900 and 4025. Above that, key resistance at the 200 dma (4075) and lateral resistance of 4100. If the index can hold support, it should be able to build enough internal energy to make the next leg up and perhaps indicate a change of direction for market. But failure at 3900 and it probably trades to 3800 and 3700. I think the bear market lows have been put in though.
NDX: The megacaps are much weaker than the broader market. It bounced off a 52 week low and traded to mid channel around 12000. For now it has held support on the 50 dema. But on the short term it could go either way. Over all the chart remains bearish.
DJIA: Strong move off of a double bottom at 28700. It has moved up through the declining tops line and the 200 dma. Support 33300. Resistance 33400. Over that level and I think that signals a change in direction for the market place. A little early to call but the Dow is quite strong.
DJTA: The Trannies tried to break out but got rejected. It did hold support, though, above its 200 dma around 14000. Resistance 14600 and 15300. Above those levels and a bull market signal is given with confirmation with the Dow.
IWM: The mid/small cap ETF got to the 200 dma and the declining tops line and was rejected. Support $178. If it can get over $191 I think that signals a change in direction for markets. The next week will be critical to see if a "Santa Claus" rally develops.
FAS: The financial sector ETF has broken out of a big down trending channel and traded up to the 200 dma. So far it was rejected at that level. See if it holds support around $77 for possible entry. Over $91 and i think that signals a major change in direction for markets.
LABU: The biotech ETF is in a trading range between $6 and $8.25. Bullish above and bearish below.
SMH: The semiconductor ETF, after a 40% move off its lows, was rejected at the 200 dma. $210 support. Over $230 then $250 would be the next level. After such a strong move it probably needs to consolidate and build energy before it can move higher.
GUSH: Oil traded down under $80/bbl putting a lot of pressure on oil stocks. It has held support at $175.75. The ETF is mid range and could go either way. The only caveat is that commodities are usually the last to come down at the beginning of a recession. So GUSH could come under a lot of pressure. I would be careful at these levels.
NUGT: The gold miners traded up to resistance at $34 after coming off a triple bottom around $21. Support $27. It needs to trade over $35 to indicate a change in direction. The bullion charts look like they want to trade higher.
Technical Indicators: The McClellan Oscillator sits at a neutral 21 and 71.3% of stocks are above their 40 dma. VIX is neutral at 23.12. We could see stocks consolidate in here as the recent moves profit taking is absorbed. It would be bullish for markets if the indicators continue to build internal energy with markets just below key resistance. A move to the upside for markets then could extend as we are not over bought. Next few weeks should be crucial to give us a direction into the new year.
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