This Indices to Watch list is just part of the full list that Robert Knight produces every week. As Head Trader at Turbo Trading, Mr. Knight writes the Indices Watchlist for Mondays, and a Stocks to Watch List Tuesdays through Fridays. Find out his opinions on the markets for Monday, September 27, 2021. Did you know that paying members get this report and much more? Become a paid TurboTrading Member to get the full Indices or Stocks to Watch List 5x a week. Here's the free sample:
SPX: Like clock work, the SPX spiked down on September 20th, the 5th time in 5 months. A pattern has developed that every 30 days the market sells off around the 21st of the month and then rallies. The only difference this time is that market did not hold the 50 day m.a. or the rising channel line. But as before, the next 4 days the market rallied nearly 4%. The rising trend remains in tact. The index is back up through the 50 day and 20 day m.a. The index broke out to the upside of a short term declining channel. It has resistance around 4480. Through that level and it should test the ATH at 4545. Failure at 4480 could change the story though. The next week or two will be critical for markets in deciding if we get a "Santa Claus" rally or not.
NDX: The NDX is mid channel of a large rising channel. On the Sept. 20th sell off it did hold lateral support at key levels. It is back over the 50 day m.a. but is hemmed in by a declining tops line and the 20 day m.a. It needs to get up through 15400 area to show continuation to the upside. But the uptrend would remain intact even on a pull back to the 14765 level. For now, the trend is up and the trend is your friend.
DOW: The DOW has turned short term bearish. On the recent pull back it traded down out of the rising channel. The 20 day ma.a average has crossed down through the 50 (bearish). It did double bottom on support 33740 area and bounced (dead cat?). DOW needs to get back through 35170 for continuation. A failure here and it could be the start of a 3rd wave of a 5 wave move down.
DJ-Transportation: The Trannies are in a bearish down trending channel. It bounced off support at 13850 but is up against the declining 20 ma.a and just below the declining 50 day m.a. Key resistance around 15000. It looks like the Trannies are in wave 3 of a 5 wave decline (bearish). If it rolls over look for Trannies to trade down to 13400. If the $DOW confirms this down trend of the Trannies, that would be very negative for markets. The next few weeks are critical to determine market direction.
IWM: The ETF for the Russell 2000 remains in an 8 month consolidation pattern. Support $218, $211 and $208. Resistance $226, $230 and $234.50. Chart remains neutral and could go either way. It makes it for a tough market to trade as you get a few days of buoyant small caps then there is no follow through and they sell off. It probably remains like that until the Russell 2000 shows some true direction.
FAS: The ETF for the financial sector sold off dramatically from the triple top at $129 area. It pulled back 20% in the span of 3 weeks. It did bounce off key support at $103 area and the 20 day m.a. never did cross the 50. It is up against resistance here at $123 after a sharp 20% rebound. The ETF is mid range now in a large consolidation pattern. So it could go either way. We will have to wait to see which way the trend develops. Fr now, the ETF is neutral.
LABU: The biotech ETF has broken out of a long term declining channel. It has formed a reverse head and sholders pattern and may be starting wave 3 of a new 5 wave trend up. It is hemmed in by a short term declining tops line and is coming into the apex of a wedge pattern. Support $60. Resistance $65. If it can get through $65 then I think we see the next move on LABU to $85. Chart is bullish.
SMH: The Semiconductor ETF remains in a strong rising channel. It has been consolidating for the past month with key resistance around $276. After gapping down on Sept 20th, the ETF snapped back almost to the ATH. Chart is bullish and the trend is your friend Look for the ETF to trade to $290 and $300.
GUSH: The oil ETF sold off 50% from its highs, yet oil remained very strong (now over $70). The ETF made a V bottom right hand extension pattern and is now surging breaking out of the down trending channel. The 20 day m.a. average has crossed up through the 50. Look for GUSH to trade to $90 and $100. Chart is bullish.
NUGT: The gold ETF for the senior miners remains very bearish. It is in the 3rd wave of a major 5 wave declining pattern. Not looking to trade the gold stocks anytime soon.
Technical Indicators: The indicators have moved back to neutral with a bias to the upside after registering oversold on Sept. 20th. Now, we are neither overbought nor oversold. VIX actually has gone back to registering bullish (<20) after spiking to 28.
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