Indices to Watch Sampler July 26, 2021
Want to find out what Robert Knight thinks the markets will do on Monday, July 26? 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 July 26, 2021
SPY: The index traded to new ATHs on Friday up over 4% in 5 days. Technicals are not strong yet big markets continues to charge higher. The SPY is mid channel so vulnerable to a pull back or at least consolidation on this break out. This market looks like it is headed to 4500 and 46600 though.
NDX: It also traded to ATHs on Friday surging for 4 days with the SPY. It is mid channel of a intermediate channel so we'll see if it has follow through. Top of the channel is 15400 area. Support at 15000 and 14800. The chart is very strong so I am looking for continuation.
DOW: It traded up to a triple top at 35090 closing just under it. The index is in a consolidation pattern but making higher lows. Look for this to trade over 3600 with 3700 and 3800 targets. Support 34850 area. Chart is very bullish and should continue higher.
DJ-Transportation: The Trannies are in a bearish down trend. It did bounce off the lower trend line in a V bottom pattern. It has consolidated for the last 3 days, currently 14756. It needs to get through 15000 to show a change in direction. This bearish transportation is a negative divergence for the $SPY and $DOW. The Trannies need to trade back up to and surpass the ATH to confirm the move of the other big markets. Failure to do so and it could drag all the markets lower.
IWM: The IWM remains in a 6 month consolidation pattern. It bounced off support last week and surged to mid channel. Support at $217 and $21.50. Resistance $226, $230 and $234.50. Chart is neutral and could go either way. As the technicals will show, there is no broad market participation. The moves in the indices are the mega cap stocks and nothing else.
FAS: The financials sector ETF is hemmed in by a declining tops line. It continues to make lower highs. It needs to hold the $95 area. Over $113.25 and that should show a change in direction to the upside.
LABU: The biotech ETF remains bearish. It has support around $56. It needs to get through $70 to show a change in direction. $50 and $40 support levels now.
SMH: The semiconductor ETF remains in a large consolidation pattern. It did trade to new ATHs but now is up against resistance at $257.65. It is mid channel of a rising channel so could go either way. Overall I would say the chart is bullish.
GUSH: Huge divergence between the price of oil and the oil producers. GUSH, after double topping at $103 sold off over 40% down to $60. Yet the price of oil remains very strong over the $70/bbl level. GUSH is currently bearish. See if it holds $60 for a double bottom. If the general markets starts to catch up with the mega caps then GUSH should be a good trade at this level. We'll see...
NUGT: The gold ETF remains bearish.
Technical Indicators: There still is no breadth to this market. Stocks above their 40 day moving average have climbed up from extremely over sold at 18% to 33.4%. The McClellan Oscillator also registered extremely oversold last week at -203. It has bounced back to -11. The broader market remains downside bias even though the mega caps are trading to new ATHs. VIX back under 20 is bullish with little fear in the market. But this is highly influenced by mega caps stocks so shows a strong divergence from the rest of the markets.
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