Indices to Watch Sampler June 27, 2022
When the New York Stock Exchange opens for the week on June 27, what does Robert Knight predict for the markets? 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 June 27, 2022
SPX: Strong 5-day bounce off the declining bottom channel line. It traded back up through key resistance at 3850. The gap fill at 4015 is the next level. The index is mid-channel so could go either way. The most likely scenario is for the index to get rejected at resistance and retest the 3650 level. Unlikely the bear market is over yet as we have not seen capitulation by the masses.
NDX: The index has also made a 5 wave move to the downside like the SPX trading well into bear market territory. It has bounced the last 5 days up to lateral resistance and the declining tops line around 12250. Look for a rejection at this level for a retest of 11000 before the bear market is over.
DJIA: The index remains in a large down-trending channel and has bounced to mid-channel. Look for continuation to 32270 area gap fill and the 50 day ema. Maybe it gets to 32500 lateral resistance. Look for a retest of 30000 area. Chart remains bearish.
DJTA: Strong surge by the Trannies off the declining bottom channel line. Key resistance around 14000. Look for rejection in that area (lateral resistance and 50 day ema). Look for a retest of the 12800 area before the bear is over. Chart remains bearish.
IWM: The Russell 2000 ETF remains in a strong down-trending channel bouncing off $163 support. It is now mid-channel and at resistance in the $175/$178 area. Maybe it gets to $183 before retesting the $163. Chart remains bearish.
FAS: The financial sector ETF bounced off lateral support and the bottom channel line at $57. On Friday it surged nearly 12%. It is up against lateral resistance at $69. If we get continuation look for the gap fill at $77.85 as next resistance. Chart is in a strong down trending channel. But it is mid-channel so could go either way. Overall the chart remains bearish.
LABU: The biotechs are extremely oversold and we put a swing on LABU looking for it to break out of a range between $4 and $6.75. It traded to resistance at $8 on Friday. Support $6.75. Through $8 then $10 and $11.50 are targets. But, technically, the chart remains bearish.
SMH: The semis bounced off lateral support and the declining bottom channel line around $200. It could fill the gap at $223.42. That would put it mid-channel. From there it could go either way. The next level would be $232. But the chart is in a large down-trending channel and remains bearish.
GUSH: The oil ETF is down over 50% from its recent high. Yet oil has only dropped 12% in the time. For me, GUSH is broadcasting that oil will continue to sell off, back to $80/bbl as the country heads into a recession for 3rd and 4th quarters. GUSH has broken down out of a strong rising channel. It did bounce off $121 support. Resistance $140 now. Most likely the ETF trades to $100 and maybe $80 over the next few month.
NUGT: The gold miner ETF violated key support at $40 area. I would expect a "commodity bust" over the next 2 quarters as the US heads into recession. Next support $33. Chart is bearish.
Technical Indicators: After registering an extremely oversold position, market bounced last week. 27.2% of stocks are above their 40 day m.a. and the McClelland Oscillator sits at 77. VIX after double topping at 35 now is 27.23. Short term there is a bias to the upside for markets. If they get into an over bought reading as we trade into resistance levels expect them to pull back and retest recent lows.
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