Indices to Watch Sampler June 7, 2021
What's coming up for the NYSE on June 7th, 2021? Find out the opinions of TurboTrading's head trader, Robert Knight, MBA. This "Indices Watchlist Sampler" is just part of the report. Paying TurboTrading members get this report each week. Plus, they get the 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 7, 2021
SPY: The SPY made a nominal new ATH and closed just 2 points off the previous ATH making a double top. But we also made a double bottom in mid May. the index remains in a strong rising channel. Thursday, last week also could be construed as an island reversal pattern (bullish). If the momentum continues through 4230 look for a move to the mid-channel around 4280/4300, then 4400 top of the channel. Chart is bullish.
NDX: The NDX made a double top pattern in April and pulled back to support and made a double bottom in May. It is coming into the apex of an ascending triangle and is in a rising channel. It also made an island reversal pattern (bullish) on Thursday. Look for NDX to trade to ATH around 14073. Through that and it could trade to mid-channel 14500 and top of the channel 15000. Chart is bullish.
DOW: The DOW is just short of key resistance at 34832. It has support on the 20 day m.a. It is mid channel so could go either way. But momentum is strong. Look for movement to 35000 and 35500. Support 34400.
DJ-Transportation: The Trannies are in a massive rising channel but have triple topped at the 16000 area. Support 15330 area and then 15000. If the SPY and DOW trade to new highs we will need to see confirmation of new highs from Trannies to confirm the next leg up of the indices. Markets are at a critical juncture.
IWM: The Russell 2000 ETF has been consolidating for the past 4 months. It is up against the declining tops line. It needs to get through $230 and $235 (ATH). Key support around $218. It is coming into the apex of a wedge pattern and so at a critical juncture. If it breaks out over $230 look for mid-channel move to $250 and top of the channel $275.
FAS: The financial sector is one of the leaders coming into the apex of an ascending triangle (bullish). Key resistance at the $126.50 level. If the momentum stays strong look for FAS to trade to $140 and $150.
LABU: The biotech sector continues to be bearish. It is in a strong down trending channel and bear flagging at the moment. But it has made a 5 wave move down so may be consolidating in here. It is right at the declining tops line. So a failure here takes the ETF down to $56.60 then $50. Over $70 and it may signal a change in direction for biotechs.
SMH: The semiconductor ETF has much the same chart as the NDX. It is up against the declining tops line after making a double top in Feb/April. It is a massive consolidation pattern. It needs to break out over $258.60 area. If it does then I think it is the start of wave 3 of a massive 5 wave pattern. Short term look for $275 and $290 as targets.
GUSH: The price of oil remains very bullish and has propelled the GUSH to 52 week highs. It is in a strong rising channel and the start of wave 3 of a massive 5 wave pattern. Look for GUSH to trade to $110 and $120 on the short term. Support at $85.
NUGT: The gold miner ETF broke to the down side of a bull flag pattern. It is mid channel so vulnerable to a pull back to the $70 area. The chart, over the longer term is bullish for now. It may need to consolidate in here to digest the moves it has made before heading higher. Look for NUGT to trade to $90 as the near term target.
Technical Indicators: The broader market remains neutral with the McClellan Oscillator at 36.92 and the stocks above their 40 day m.a. at 57.08. We are neither overbought nor oversold. The VIX is under 20 (bullish) at 16.42. I think we will see VIX continue to drift off (also bullish). If the markets do start to break out here, then there is a lot of internal energy for stocks to trade much higher. But for now, there is not broad participation in the market.
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