What are Robert Knight's stock market predictions for the week of July 5, 2022? The trading week was shortened by the 4th of July holiday on Monday. This sample Indices to Watch Report covers the major stock indexes. Note: Paying members receive this report and much more. Get a free TurboTrading 1-Week Trial, or become a paid TurboTrading Member to receive the Stocks to Watch List. Here's the free sample:
Indices to Watch July 5, 2022
SPX: The SPX traded down into bear market territory in a 5 wave move. Friday was a strong day for markets ahead of a long weekend. Most likely, profit-taking and short-covering. Key resistance at 3850. Most likely SPX pulls back to test the mid-June lows around 3600 before we see a change in direction for markets. For now, SPX remains bearish.
NDX: The index also made a 5 wave move down well into bear territory. It bounced in early June to lateral resistance and the declining tops line and was rejected. NDX looks like it will test the 11000 key support level. If it holds there, maybe we get a change in direction in markets. For now, it remains in a down-trending channel and is bearish.
DJIA: The Dow remains in a strong down-trending channel. It bounced off the bottom channel line to resistance at 32000 and failed. Look for it to pull back to test 30000 and 29500. Chart remains bearish.
DJTA: Trannies bounced off the bottom channel line back to resistance at 14000 and failed. Support/resistance around 13200 now. Failure here and 12500 and 12000 are targets. Chart remains bearish.
IWM: The Russell 2000 ETF remains in a strong down-trending channel. Support around $164. Below that and $160 and $150 are targets. Chart is bearish.
FAS: The financial sector ETF is in a strong down-trending channel. It was rejected at $69 resistance. Support $57. Below that and $45 and $40 are the next support levels. Chart remains bearish.
LABU: The biotech ETF is bear flagging in here. Resistance at $8 (50 day ema, whole number and lateral resistance). Support $6.75 and $5. Maybe we are close to a bottom for LABU. But chart still remains bearish.
SMH: The Semis are accelerating to the downside as the ETF broke below key support and the declining channel line. Next support $190 and $173. Chart is very bearish.
GUSH: Oil is only down $15 from its highs yet the E&P ETF has dropped $140 or around 60% from its recent highs. It is on key support at $121. Below that and $100 is the next level. It looks like we will get a typical recession "commodity bust". Expect oil to trade back to $80 for starters and GUSH to continue to sell off.
NUGT: Reversal day for gold stocks as they held support at $33. But the bullion charts are breaking down so expect the miners to continue to sell off. $25 is the next target. Chart is very bearish.
Technical Indicators: The McClellan Oscillator sits at 21.58 and 27.8% stocks are above their 40 day m.a. VIX is 26.7. Indicators are neutral and markets could go either way on the short term. Mega caps are stronger than the general market.
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