Robert Knight has released his latest Indices to Watch Report for Monday, September 18, 2023. The report covers these stock indices: $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 18, 2023
SPX: The index is coming into the apex of a wedge pattern. It probably needs a few more days before it pops or drops. Downside support at 4400 and 4350. Below 4350 would be very negative for markets. 4500, 4550 and 4600 key resistance levels. For now, the chart remains bullish but next week could change the story on the direction of markets. Stay tuned.
NDX: The index remains in a strong rising channel but at the apex of a wedge pattern. Expect next week to show a pop or a drop. Support around 15150. Below that and 14650 is the next key level. Much below that level would be very negative for the overall direction of the markets. Through 15575 and look for the index to test 16000.
DJIA: The Dow came back to test the break out level and held. It is now in a strong rising channel but coming into the apex of a wedge pattern. Support levels 34600 and 34300. Below that level would be very negative for markets. Resistance at 35000, 35500 and 36000. Again, next week should show the ongoing direction for markets.
DJTA: The index is on support at 15275 level. Below that and 14700 area is key support. Much below that level would be very negative for markets. 15900 resistance. Index is mid range and could go either way on the short term.
IWM: The broader market remains in a 14 month consolidation pattern. It is mid channel and holding the 200 dma for now. Below that and $180 and $173 support. Key resistance at $189.50 and $192. Over $200 would show a very strong range break out for the broader markets. If it does, you would expect a strong move to the upside.
FAS: The financial sector ETF is coming into the apex of a large wedging pattern. It is just under the 200 dma and a strong declining tops line. It probably needs another 2 weeks before it shows direction. For now it is just coiling. Support $65 and $60. Resistance $70 and $74.50. Over $74.50 would be a strong move showing a new direction for the sector to the upside.
LABU: The biotech ETF remains bearish making wave 5 of a 5 wave move to the downside. It needs to hold the triple bottom at $4.25. Failure there would be very negative for the sector as it could trade down to $3.85 for starters.
SMH: The semiconductor ETF broke down through the long term rising channel line forming a H&S pattern. Below $143 would be a major breakdown through the neckline for the ETF with $135 the next level. It would be very negative for overall markets if it failed to hold the neckline.
GUSH: Even though oil remains strong, the oil stock ETF failed to hold the rising channel line. It tried several times to get through $43 but failed. A downside move here takes it to $37 and then key support at $35. With the commodity so strong it seems downside should be limited. But a continued break down could signal and change in direction for the bull market economy.
NUGT: The gold miner ETF is in a down trending channel having rallied to the top of the channel. $34.75 is the next resistance level. Failure there and it would confirm the end of wave 4 and the start of wave 5 to the downside (most likely occurrence). Support $27 and $22.
Technical Indicators: 33% of stocks are above their 40 dma and the McClellan Oscillator sits at -15.45. So the broader market remains neutral and could go either way. But whichever direction it picks there is lots of energy for the move to extend. VIX remains very bullish at 13.79. there is no fear for the megacaps yet.
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