Indices to Watch Sampler May 16, 2022
What is Turbo Trading's Head Moderator Robert Knight prediction for the NYSE on May 16, 2022? Below is his Indices to Watch Report. 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 May 16, 2022
SPX: The index bounced off support at $3850, 19.75% of its ATH. Since then it has made a 3 wave move to the down side. The last 2 days are big reversal but most likely a dead cat bounce. I think we see it get to 4150 in this 4th wave bounce before we roll over and test a bear market low around 3700 in a 5th wave downward move. We have not had a big volume blow off to the downside. We need market capitulation before it is over and can resume to the upside. Keep you powder dry as there will be a chance of a life time buying opportunity in the next few months.
NDX: The index also looks like it has finished wave 3 to the down side. Look for a bounce (wave 4) to 13,000 before rolling over and testing the 11500 support area. Below that level and 11000 is the next support. Again we have not seen capitulation that would mark the end of the bear trend.
DJIA: Value stocks have held up much better than the growth stocks. The Dow touched down to support at 31,500 and bounced. But it remains in a down trending channel. Look for a bounce to 32,500/33,000 area before rolling over for the last wave down. The DOW could trade down to 30,000.
IWM: The small cap ETF is in a down trending channel but bounced off the bottom channel line and lateral support. Look for a bounce to $183 and $188before rolling over and testing the 52 week low. Below $170 and $165 and $160 are the targets. Chart is bearish.
FAS: The financial sector ETF made a new 52 week low last week but bounced with markets. It is in a strong down trending channel. Look for a bounce to $83.50 and $93. I would then expect it to roll over with the general market and retest $69 and maybe $61.50 when we get capitulation.
LABU: As predicted, the biotech traded down below our $5 target. It bounced with markets but the sector continues to lag. If markets bounce in a 4th wave look for LABU to trade to $8 and $11.50. After that it should test the $4 low again. I would expect LABU to be rolled back 1:4 or 1:5 by the end of May.
SMH: Semiconductors remain in a strong down trend with growth stocks. It bounced off the down trending channel line and lateral support around $215. Look for continuation to $237 and $248. Down side target $210 and $200 before we see a renewed uptrend.
GUSH: The price of oil remains very strong over $100/bbl. Yet the oil stocks came under pressure with the rest of the market. It held support at $140. It is wedging in here. With the bounce in markets look for GUSH to trade to $186 and $200.
NUGT: With the strength of the USD, the price of gold failed to hold support levels and as such senior gold miners sold off sharply. The chart is very bearish. Below $40 would be a major break down for the ETF. $32 and $24 targets.
Technical Indicators: Markets were in an extreme over sold position last week so not surprising we got a bounce the last 2 days. Only 15.5% of stocks are above their 40 day m.a. The McClellan Oscillator bounced to -30.32 from -200. VIX is back under 30 at 28.87. This 4th wave rebound could last for for another few weeks before we get the final sell off/capitulation needed to end the bear market.
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