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Indices to Watch Sampler May 17, 2021

Are you ready for the opening bell at the New York Stock Exchange on Monday, May 17, 2021? Read Robert Knight's "Indices Watchlist Sampler" below. Our members get this report on the weekend, plus our Stocks to Watch List the night before trading days. Take a free TurboTrading 1-Week Trial to get a taste, or become a paid TurboTrading Member to get the Stocks to Watch List. Here is the free sample:

May 17, 2021

SPY: After a 3 day pull back the SPY held lateral support and bounced off the 50 day moving average. Support levels for SPY are 4060 and 4000. If we get continuation SPY could trade back to the ATH at 4228. If it goes through that level then 4328 is the target. SPY remains in a strong rising channel. But, the chart is neutral on the short term and could go either way.

NDX: The NDX is not as strong as the SPY. It double topped at 14100 area and then sold off to the rising channel line around 13000. Resistance for it at the 50 day m.a. around 13465. Key resistance at $13700 and $13882 if it gets through the 50 day m.a. It does remain in a strong rising channel. On the short term the chart is neutral and could go either way.

DOW: After a sharp 3 day sell off the index held lateral support around 33560. Friday it had follow through from its bounce and traded back up through the 20 day m.a. Support now 34260. If momentum continues 35000is the target.

DJ-Transportation: The Trannies are in a strong rising channel and after a 3 day pull back, it held support on the 20 day m.a. and the rising channel line. Key resistance at 16000. Through that level and 16170 and 16400 are targets.

IWM: The ETF for the Russell 2000 has been in a consolidation pattern for the past 4 months. It has broken down out of the long term rising channel line but held key support at the $208 level. Chart is neutral and could go either way. Over $230 look for it to trade to ATH at $235. Through that and $250 is the target. If it fails $208 that would be a major break down. Look for $200 and $190. The 20 day m.a. average is about to cross the 50 so the trend may be bearish.

Technical Indicators: The McClellan Oscillator last week sold off into over sold territory reaching -150. It bounced back to a neutral reading on Friday at -2.47. 53.54% of stocks are above their 40 day moving average, also a neutral reading. Currently the markets are neither overbought nor oversold. There is not consistent breadth to the market and stocks have no follow through, especially to the upside. VIX, after spiking close to $30 sold off sharply the last 2 days trading back under 20. Under 20 is bullish for markets.

Want to get the full Indices to Watch List on the weekend, and the Stocks to Watch list for NYSE trading days? Day Trade Members get the full Stocks to Watch list, daily webinar with live trades, expert commentary, our library of 500 educational trading videos, ten chat rooms, swing trade alerts, and more. We also have a membership plan for Swing Traders. Start with a free 1-week trial.

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