Robert Knight has posted the Indices to Watch Sampler for the stock market for the week starting September 6. 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 September 6, 2022
SPX: Big reversal day on Friday as the index was up over 1% and closed down over 1%. Key resistance at 4015. Support 3900. The index has made a 50% retracement from its mid-August high. It made a 5-wave move up off the July lows and now a 3-wave corrective in wave 2. But if it fails at 3900 it probably negates the 5 wave pattern and goes down to test the June lows. As it sits now, the pattern is neutral and could go either way.
NDX: A strong reversal on Friday as well as the index has made a 50% retracement from the mid August highs. After making a 5 wave move up (wave 1) and now a 3 wave corrective (wave 2) we would look for 12000 to hold support. Failure there negates the pattern and it probably trades back down to 11500 and 11000. Next few weeks will be critical for bulls.
DJIA: The Dow traded up to lateral resistance and the 200 dma at 34000 and failed. It also failed to hold support at 31400 with a big reversal day on Friday. Next support is the gap fill at 30675. Though the index is mid-channel and could go either way I would expect it to fail here.
DJTA: Big engulfing bearish bar on Friday. It double topped at 15300 and sold off in a 3 wave move. 13500 area is next support. It is a 50% retracement so may hold at this level. Technically the chart is neutral and could go either way at this level.
IWM: The Russell 2000 ETF traded up to the 200 dma near lateral resistance at $205 where it failed. It has pulled back to lateral support at $178 (neckline break out of a reverse H&S pattern). Failure there takes it to the $170 area. The ETF remains in a big downtrend channel and is bearish.
FAS: The financial sector ETF remains in a strong down trending channel as it failed at the down trending tops line and lateral resistance at $92 area. Support at $68. It is mid-channel and so could go either way, But overall the chart is bearish. Failure at $68 and it goes down to test $58 double bottom.
LABU: The biotech ETF double bottomed at $4. It then got into a rising channel and traded up to lateral resistance around $13. It has now made a 3 wave corrective pullback. It needs to hold $8 otherwise the current bullish pattern will be negated. Failure at $8 and it trades to $7 and $5. Resistance at $10 and $11.50.
SMH: The semiconductor ETF remains very bearish in a strong down-trending channel. It triple topped at $250 area and sold off 20% from that level. Key support at $200 then $190. I would expect those levels to be tested in September.
GUSH: After double bottoming at $100, the oil stock ETF made a strong 5-wave move up to lateral resistance at $200. It pulls back to lateral support and the 50 dma at $161. There are too many variables involved to get a clear picture on the direction for oil stocks. On the one side, weaker commodity price, strong USD and bearish overall market with signs of recession on the horizon. On the other side strong demand, war in Ukraine, and OPEC looking to cut production. Stay tuned!
NUGT: Gold and silver bullion are under strong pressure with a strong USD and high-interest rates. The ETF did make a new ATL on Thursday. It remains in a strong down-trending channel. Look for it to continue to trend down. Targets $20 and $15.
Technical Indicators: The broader markets are in an extremely oversold position with the McClellan Oscillator reading -204. 31.7% stocks are above their 40 dma down from over 80% just 2 weeks ago. VIX is bearish at 25.5. I would expect markets to bounce in here off key support. But it is too early to tell if it is a reversal to the upside we should expect.
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