Indices to Watch Sampler October 24 2022
Robert Knight posted Turbo Trading's Indices to Watch Sampler below for 10/24/22, covering $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 October 24, 2022
SPX: Big reversal day on Friday after 3-day downtrend. Overhead resistance at 3770. Bigger resistance around 3800 (declining tops line, 50 ema and lateral resistance). Over 3800 would be a break of the neckline of a reverse head and shoulders pattern. That would be bullish for markets. For now, though SPX remains in a down trending channel and overall the chart remains bearish.
NDX: The index bounced off 11000 support and traded to the declining tops line. Bigger resistance at 11500. Chart remains in a strong down trending channel and overall is bearish. But it could be forming a reverse head and shoulders pattern. A breakthrough the neckline at 11500 would be bullish for markets.
DJIA: The Dow has broken through the neckline of a double bottom pattern and has moved above the 50 dema. 31500 next resistance. Perhaps we have seen the bottom of this bear market Next few weeks will be critical to give solid direction.
DJTA: Trannies are forming a bear flag in a strong down-trending channel. Key resistance at 13100 and 13400. You need trannies to confirm SPX and DJIA to signal a change in direction. Transportation is a key component of the world economies. Without it, the bear continues.
IWM: The Russell 2000 ETF reversed off support at $170. Resistance at the 50 dema around $176. Then $178. IWM was on of the few ETFs/indices that held the June lows making a triple bottom at $163 area. Technically, it remains in a bear trend. The next few weeks should give us a good indication if the direction has changed.
FAS: The ETF remains in a strong down trending channel making new 52-week lows last week. It traded up to lateral resistance and the 50 dema and failed. $67 is key resistance. Currently, it is mid-channel and could go either way on the short term. Chart remains bearish.
LABU: The Biotech ETF remains in a down-trending channel but finding support at $6. Big resistance at $7.75/$8 area (50 dema, lateral resistance, declining tops line). Failure at $6 and it trades down to $5.25 and maybe $4. Chart remains bearish.
SMH: Stock made a new 52-week low on 10/13. It bounced back to the 20 dema and the declining tops line. It did bounce off the bottom channel line in the larger picture so could rebound perhaps to $200. Chart remains bearish overall.
GUSH: The oil stock ETF is up against key resistance at $178. It is holding up relatively well considering the downslide of oil itself. Over $178 and it could trade to $200. Support around $150.
NUGT: Big reversal on NUGT on Friday coming up against the declining tops line. Big resistance at $27 (declining tops line, 50 dema, lateral resistance) and then $31. Chart is in a strong down-trending channel and remains very bearish.
Technical Indicators: With the bounce in markets the technical indicators are showing an upward bias. 39.7% stocks are above their 40 dma and the McClellan Oscillator sits at 84. VIX traded under $30. We would not want to see the indicators get into an overbought position coming into key resistance. That would be very negative for markets. As it sits now, there is energy to trade markets high. Next few weeks will be critical for continuation to the upside for markets.
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