Indices to Watch Sampler June 14, 2021
Want to know what's coming up for the NYSE on June 14th, 2021? Find out the opinions of TurboTrading's head trader, Robert Knight, MBA. This "Indices Watchlist Sampler" is just one part of the report. Paying TurboTrading members get this report each week. Plus, a Stocks to Watch List the night before each trading day. 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 14, 2021
SPY: SPY closed at an all-time high closing and just 1 point short of an ATH. It continues to grind its way higher on average volume. It is not a blow-off type break out and sellers seem to be muted. The index remains in a strong rising channel. I would expect this trend to continue. Next target 4300.
NDX: The NDX double topped in April and then double-bottomed in May. It remains in a strong rising channel coming into the apex of an ascending triangle. This recent move could be the start of the 3rd wave of a 5 wave move off the double bottom. It needs to get through 14075. Failure there could mean a pull back to 13500. A break out would put the targets around 14650 and 15000. Chart remains bullish.
DOW: Last week the DOW double topped at 34820 area. It pulled back but is finding support on the 20-day m.a. and lateral support around 34435. It has stronger support at 34000. The index remains in a strong rising channel but is mid-channel so vulnerable to a pull back. Look for it to consolidate for another 2 weeks before pushing into new high ground.
DJ-Transportation: The Trannies could spoil the party. It double topped at 16000 last month but now has broken down below lateral support at 15347. For now, it has bounced off the 50-day m.a. Bigger support at 15000. The index does remain in a strong rising channel. But we need to see the index confirm the SPY break out. Failure to do so would be a negative divergence and perhaps a harbinger of negative trends to come.
IWM: The IWM is in a 6-month consolidation pattern. It put in a double top last week at $234.50. For now, it is holding support at $230. It could pull back to $223 level and still remain intact. Much below $218 and we may have a change in direction for mid and small cap. But if it holds the rising channel line an breaks out to new ATHs then that would be a very powerful signal for markets. We should see the key direction over the next 2 weeks; break out or break down.
FAS: The financial ETF put in a double top in early June and has sold off to the intermediate rising channel line. It has key support in the $108/$110 range. Below that and $100 is the next support. The longer-term trend remains bullish. But perhaps as markets stall in here it needs to consolidate before trending higher.
LABU: With the recent strength in the mid and small cap market, LABU is showing a reversal from its major down trend. After making a 5 wave move down the ETF has broken out of its long-term declining channel. Looking at the hourly chart it has made a V bottom, right-hand extension pattern. Last week it surged off support and now flagging above the 50-day m.a. average. Support now around $71. Targets $85 and $96.75.
SMH: The semiconductor ETF double topped in Feb/April. But it double-bottomed in May. It is in a 5-month consolidation pattern. It is currently hemmed in by the declining tops line. It needs to get through $258.60 with strong momentum to continue the bullish trend. Below $220 would signal a major change in direction for markets.
GUSH: Oil remains very strong over $70/bbl. Oil companies can make a lot of money at that price. The ETF is in the 3rd wave of a 5 wave move to the upside. Inside that larger 3rd wave it is forming a 4th wave of 5 waves. It is in a strong rising channel. Targets for GUSH are $138 (mid gap fill) and $185 (gap fill).
NUGT: After breaking out of a massive down trending channel in May, the ETF is now in a new rising channel. It is flagging in here with key support at $70. Look for NUGT to trade to $90 and $100 if the trend line holds.
Technical Indicators: Even though the SPY is trading at ATHs the markets are neither overbought nor oversold. 62% of stocks are above their 40-day moving average and the McClellan Oscillator sits at 45. Both indicators are neutral showing that there still is not broad participation in the market. If markets should start to make a significant move to the upside there is lots of internal energy available for the upward trend to be strong. VIX remains bullish under 20 (15.65). The market trends remain bullish.
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