Indices to Watch March 4, 2024

 SPX: The index traded to new ATHs on Friday trading through our 5100 target. It remains in a strong rising channel but is near the top of the channel so subject profit taking and a pull back. Support now at 5000. There doesn't seem to be any stopping the markets from embracing a technological revolution and all of its productivity benefits. Look for this bull market to continue for at least the next 2-3 years.

NDX: The index also traded to new ATHs trading through our 18000 target on its way to 21000. It broke through a double top pattern (bullish) and is mid range of a strong rising channel. Support 18050 area and then 17600ish. Current target this year remains around 21000. Chart is very bullish and not really seeing any end in sight on the near term.

DJIA: The Dow is in a strong rising channel, bouncing off support around 38700. Look for it to trade to our target of 41000, probably before June. Chart is very bullish.

DJTA: The transportation index continues to flag just under key resistance around 16200. 16675 and 17100 key levels to get through to confirm the new highs made by the Dow and SPX. The index through 17100 would be very powerful for markets. You need a strong transportation sector to have a strong economy. Chart is neutral.

IWM: The Russell 2000 ETF broke out of the 2-year consolidation pattern through the $200 level. It is testing the recent double top around $205. Through that and the next major level is $210. Breaking out of a 2 year band is very strong and it looks like the broader market is finally starting to catch up to the mega caps. Over $210 and we should see it trade to $235 and $250 this year.

FAS: The financial sector ETF is in a strong rising channel having broke out over key resistance at $92. Support now around $95. Targets $110 and $120, most likely reaching those levels before June. Chart is very bullish.

LABU: Nice swing trade for us from $115 breaking out of $140 trading to $177. It pulled back to fill the gap around $150 and reversed on Friday. Key support will be in the $141 area. Next resistance levels are $190 and $205. Chart remains bullish.

SMH: The semiconductor ETF is in a monster-rising channel, trading through our $210 target on its way to $240. But it is at the top of the channel so could be subject to profit taking. Support $207. Chart is extremely bullish (and maybe extended on the short term).

GUSH: The oil E&P ETF has moved up through its 200 dma to resistance at $35. I would look at $35 to be the neckline of a reverse H&S pattern on the daily. The commodity over $80 is giving the stocks some life. The real key level for it to get through will be $37. Over that level could signal a change in direction for the sector. For now the chart remains bearish.

NUGT: It is surprising that the gold stock ETF is not stronger with the overall strength in the underlying commodity. It did hold support around $23 (double bottom) and surged on Friday to resistance at $26.40. There is a lot of overhead for this ETF to get through before it signals a change of direction. The chart remains bearish but the downside is probably limited. Over $32 may signal a change in direction for the ETF.

Technical Indicators: 55% of stocks are above their 40 dma and the McClellan Oscillator sits at 42.53. The VIX is very bullish at 13.11. There is no fear in the mega-caps. The broader market is neither over bought nor over sold. So with markets trading at ATHs there is lots of energy available for the strong rally to continue. Markets are very bullish.