Indices to Watch Sampler December 20th, 2021
Want to find out what Robert Knight thinks the markets will do on Monday, December 20th? 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 December 20th, 2021
SPX: On Thursday the stock opened above the triple top at 4715 but sold off most of the day. On Friday it had downside follow-through ending down 1% on the day. It did bounce off the 50 day m.a. and closed at 4620. But the index could be putting in a double top here and a sell off could ensue. A break below 4545 and we may have a change in direction for markets.
NDX: Big reversal day on Thursday for the NDX and downside follow through on Friday. It stayed above support at 15700. It index is hemmed in by a declining tops line. It appears to have made a head and sholders pattern but needs a break below 15700 to confirm it. For now, the index does remain in a bullish trend.
DJIA: The Dow looked like it put in a V bottom right hand extension pattern (bullish). But it sold off sharply on Friday trading below support at 35500. Dow below 33700 probably means a change in direction for markets. For now the chart is neutral.
DJTA: The Trannies are coming into the apex of a wedge pattern. It traded below key support at 16000 and the 50 day m.a. If it fails to hold 15700 in conjunction with a break down of SPX and DJIA then that would confirm a sell signal for markets.
IWM: At the beginning of November, the IWM broke out of a 9 month consolidation pattern trading to $244.46. But it turned out to be a fake out break out as the IWM has not sold off to key support at $211 and $208. A break below $208 and I think that will signal a change in direction for markets.
FAS: The financial sector ETF does remain in a rising channel but is at key support at $123.65. A break below that and $113 and $100 would be downside targets. Failure at $100 I think signals a change in direction for markets.
LABU: The biotech sector remains under tremendous pressure. On Friday the ETF did bounce off support at $33 and was up 15.4% on the day. But I think it is just a short squeeze. The chart remains bearish. Over $41 with momentum, and I think LABU trades to $48 and $51. But if the other markets continue to sell off, LABU will not be able to withstand the pressure.
GUSH: Even though the commodity remains strong, GUSH continues to sell off with the general markets. It has key support at $79. Below that level and $67 and $55 are next areas of support. The 20 day ma.a average has crossed down through the 50. Chart is bearish.
NUGT: The price of gold remains strong yet NUGT pulled back sharply with markets. It double bottomed at $41. With inflation remaining strong gold prices should remain up. So it will be a struggle between a strong commodity and a weak market. It is now in a range between $41 and $53.
Technical Indicators: The indicators are bearish. Only 22% of stocks are above their 40 day m.a. The McClellan Oscillator is at -67. There is no breadth to the market and bias is to the downside. VIX remains neutral at 21.57. Below $20 would be bullish. Over $25 bearish.
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