Indices to Watch Sampler June 1, 2021
What does Robert Knight see in the indices of the New York Stock Exchange on Tuesday, June 1st, 2021? Read his "Indices Watchlist Sampler" below. Did you know that our paying members get this report on the weekend? And, they get the Stocks to Watch List the night before trading days. TurboTrading offers a free TurboTrading 1-Week Trial, or become a paid TurboTrading Member to get the Stocks to Watch List. Here's the free sample:
June 1, 2021
SPY: After double bottoming in May the index is back to ATHs. On Friday it did close at the lows for the day. It is mid channel and at ATH, so is vulnerable to a pull back here. But the overall trend is strong. I would look for the index to trade to new highs over the next 2 weeks.
NDX: The NDX is not quite as strong. It double topped in April then pulled back and double bottomed at 13000 level. It has now made a 62.5 retracement. It has resistance around the 13800 level. We will see over the next week if it can break through and trade to new highs or pull back from the mid channel move.
DOW: The DOW has broken over resistance at 34400 level. It does remain in a strong rising channel but is mid channel. It has broken out of a basing pattern and looks to trade higher. Target 35,100 and 35,500.
DJ-Transportation: Trannies remain in a strong rising channel having held support at 13,350. It did hold support on the 20 day m.a. It needs to get through 16000. If so, look for 16170 and 16400 as targets.
IWM: The IWM is in a large 4 month consolidation pattern. It is mid range and in a wedge type pattern. It needs to get over $230 and then $234.50. If it does, then we should see the start of the next wave up with targets at $250 and $270. Key support $218 and $212.
FAS: FAS is coming into the apex of a wedge pattern in a strong rising channel. It is finding support on the 20 day m.a. Over $125.75 look for targets of $135 and $145. Support $113.25.
LABU: The biotech ETF has made a 5 wave move down finding support at $50. It has just broken out of the down trending channel and through lateral resistance at $62. Over $70 and I think the trend changes. For now, the chart remains bearish.
SMH: The semiconductor ETF made a large double top in February and April. It then double bottomed at $225 in May. It is at the declining tops line, so vulnerable to a pull back. Support $247.60 and $241.40. Next resistance $254.40 and $258.60. Through those levels and we will see a strong tech sector over the next 2 years.
GUSH: Oil remains strong trading over $67/bbl. GUSH remains in a rising channel and over $78 support. This look like the start of wave 3 of a 5 wave pattern for GUSH. Look for GUSH to trade back to $91. Over that level and $100 is the next target.
NUGT: After breaking out of a large down trending channel, the gold miners are in a new up trend. After a 5 wave move up, they are now forming a bull flag. Next targets when it breaks the bull flag to the upside are $86.50 and $91.75. Support $74.75.
Technical Indicators: There still is not broad participation in the market. Only 54% of stocks are above the 40 day m.a. and it has stayed in a narrow range. The McClellan Oscillator is much the same not showing broad participation in the market. It is has traded in a fairly narrow range since December of last year. It is neither over bought nor oversold with a reading of 41.46. The VIX, though, is bullish with a reading of 16.76. The fear is coming out of the market. It is not a a complacent level yet. With the VIX continue to drift off, should be a good sign for higher markets ahead.
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