Indices to Watch Sampler June 6, 2022
What does Robert Knight predict for the Stock Market based on the Indices for the week starting June 6, 2022? This sample Indices to Watch Report offers insight. 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 6, 2022
SPX: The relief rally is running out of steam. SPX got to key resistance at 4150 (lateral resistance, top of the down trending channel and 50 day ema). Most likely a 5th wave down of a 5 wave pattern. Key support at 3850 (20% decline from ATH). Failure at that level and 3700 would be the next stop. The chart is bearish.
NDX: The NDX has dropped much further than the SPX (35% from ATH) but looks to be running out of steam as well. It looks like it is in wave 4 of a 5 wave downward pattern. Resistance at 13000 (lateral and 50 day ema). Look for the 5th wave to take it down to 11600 for starters. Below that and 11000 is the target.
DJIA: The Dow remains in a strong down trending channel. It is at key resistance at 32185 level (lateral resistance and 50 day ema). But it is mid channel so could go either way on the short term. Top of the channel is 34000. A downward move takes it to 30500 for starters. Overall, the chart remains bearish.
DJTA: The trannies remain in a strong down trending channel. Resistance 14565 area (lateral resistance top of the channel and 50 day ema). A roll over here takes it to 13200and maybe 12000 area. Chart remains bearish.
IWM: The Russell 2000 ETF is up against resistance at $188 (lateral resistance and 50 day ema). It is in a strong down trending channel but mid channel short term. Resistance $192 and $196. Support $182 and $168/$166. Chart is bearish and I expect it to test the 52 week low.
FAS: The financial sector ETF traded up against lateral resistance and the 90 day ema at $93 and failed. It is bear flagging with support at $83.65. Failure there and it should test $68.65 area. It remains in a strong down trending channel and the chart is bearish.
LABU: The biotech ETF touched down to $4.38 and now bear flagging in a range between $5.25 and $6.75. Over $6.75 look for trades to $8 and $10. Below $5.25 and it unlikely holds $4.35. I expect the ETF to be rolled back 1:4 or 5 shortly. Chart remains very bearish.
SMH: The semis ETF are mid channel of a strong down trending channel so could go either way on the short term. Resistance $248 and $257. Support $237.65, $222 and $215. Tech stocks may have found the bottom ahead of the general market and may lead us higher here. But it is too early to tell as the chart remains bearish.
GUSH: The oil sector ETF remains in a strong bullish trend but near the top of the channel. There is strong demand for the remaining oil production (ex Russia). Historically, oil over $100/bbl has caused a recession in the U.S. Not surprising that the major indices are forewarning that event. Targets $250and $260. Support around $200.
NUGT: The senior gold miner ETF held key support at $41. But now is bear flagging. Resistance $51. It looks to make a 5th wave to the down side to test $41. Failure there would be a major break down for the gold market. Chart is bearish.
Technical Indicators: After touching extremely over bought readings, the indicators have turned neutral. 43.64% of stocks are above their 40 day m.a. and the McClellan Oscillator is 69.86. VIX is neutral at 24.79 (between 20 and 25). So market weakness may be be big names and value stocks. There seems to be broader support for growth stocks as they have not made new lows. Perhaps some breadth is coming back into the market and a sell off in the indices may not be as severe for small and mid cap stocks (many are back to bear market valuation levels). The next 2 weeks should give us a good indication on overall direction.
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