Want to find out what Robert Knight thinks the markets will do on Monday, November 1st? As TurboTrading's Head Trader, Mr. Knight is qualified to offer this public sample of his "Indices Watchlist." Note: Paying members get this report and much more. Get a free TurboTrading 1-Week Trial, or become a paid TurboTrading Member to get the Stocks to Watch List. Here's the free sample:
Indices to Watch November 1st, 2021
SPX: The index closed at ATHs on Friday, up 10 of the last 13 days. The SPX is very strong moving 7.7% off its lows at the end of September. On October 18th, I wrote that this was the beginning of the Santa Claus rally. We should see strong markets now through to mid-February. It won't go straight up. markets could come back and test 4550. But look for it to trade to 4700 by year end now.
NDX: Big engulfing bullish bar for NDX as it traded to and nearly closed at ATHs. This may be wave 3 of a 5 wave move to the upside. Key support at 15700 area. It is in a strong rising channel. What is showing such strength was how strong the move is considering disappointing earnings by AZMN and AAPL. See my blog from yesterday that explains 3 reasons why it is so strong.
DJIA: The Dow traded to hew highs last week but sold off sharply on Wednesday. But it has regained the losses and traded back to near ATHs on Friday. Look for 36500 and 37000 by year end.
DJTA: The Transportation index broke through key resistance at 16000 but was just short of the spike high of 16160. But the Trannies have made an impressive run from the double bottom at 14000 at the end of September charging ahead 15.5%. It is now flagging just under the key resistance area. A solid move over 16000 will be a major Dow theory buy signal. I don't expect it to disappoint the bulls.
IWM: The Russell 2000 ETF remains in a 9 month consolidation pattern. Key resistance at $230 and $234.50. Support $226 and $218. The IWM is demonstrating what happens when there is such varied sector rotation. But if we get another major Dow theory buy signal the small and mid cap stocks will have their day in the sun. For now, we see retail traders bidding up stocks for 3 or 4 days and then institutional traders selling into the strength and slamming them back down.
FAS: With the strength in the major indices, as expected, financials are also trading to new ATHs (for the ETF). After reaching the top of the channel we did see a strong pull back. But just temporary as we should see the FAS trade to ATHs with short term targets of $160 and $170.
LABU: The biotech ETF remains bearish as it comes into the apex of a bear flag. Support $48 and $41. It remains in a strong down trending channel. We are avoiding biotechs at this time except for special situations.
SMH: After triple bottoming at $250, the semiconductor ETF has moved into a strong rising channel. It gapped up through the declining tops line and the 20 day moving average has crossed up through the 50. On Friday it traded to lateral resistance at $275. Look for this to trade to $276.50 next week and head for $281 and $285.
GUSH: Oil remains strong trading over $80/bbl. But the ETF is consolidating its recent move from $70 to $120. Support $107 and $95. I still have targets of $135 and $150 by year end.
NUGT: The ETF for the senior gold miners was a disappointment. It looked like it had broken out of a down trending channel and up through lateral resistance forming a new rising channel. But, it was not to be. Even though gold remains strong around $1750/$1800/oz the miners sold off breaking the channel. For now, we are avoiding gold stocks.
Technical Indicators: The McClellan Oscillator registered overbought 2 weeks ago and markets had a sharp pull back. It is now back to neutral at 17.92. 58% of stocks are above their 40 day moving average. So markets are neither over bought nor over sold. So there is a lot of energy available for the broader market to move ahead if the main indices continue to surge. VIX remains bullish at 16 bought also not showing signs of being over bought.
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