Indices to Watch Sampler November 15th, 2021
Want to find out what Robert Knight thinks the markets will do on Monday, November 15th? As TurboTrading's Head Trader, Mr. Knight is qualified to offer this public sample of his "Indices Watchlist." Note: Paying members get this report and much more. Get a free TurboTrading 1-Week Trial, or become a paid TurboTrading Member to get the Stocks to Watch List. Here's the free sample:
Indices to Watch November 15th, 2021
SPX: The index moved up around 10% from the October lows and traded up to the intermediate trend line. It corrected about 2% over a 4 day period. But Friday. it held the short term rising channel line and moved up .72% on the day. This move looks the start of the next leg up of the Santa Claus rally we called on October 18th. Short term targets are 4750. But I would look for 5000 by mid January.
NDX: Similar pattern to the SPX. It also held the rising channel line after a 4 day pull back. It remains in a strong rising channel. This reversal in the trend could also be the start of wave 3 of a 5 wave move to the upside. Targets 16900 and 17500.
DJIA: The Dow came off a double bottom at the end of September and tagged our 36000 and 36500 targets (36600 high). It pulled back to lateral support at 35900. On Friday it bounced off support. If this the start of wave 3 of a 5 wave move look for it to trade to 37000. Chart is very bullish.
DJTA: The transportation index is consolidating after a huge squeeze by $CAR. This was a major Dow Theory buy confirmation. Markets remain strong and should continue into February 2022.
IWM: The Russell 2000 ETF broke out of a 9 month basing pattern and traded to $244.46. It then pulled back for 3 days. the last 2 days have been inside days forming a bull wedge pattern. It is in a strong rising channel, but mid channel so it may need to consolidate for a few more days. Look for the ETF to trade to $255 and $265 by February 2022.
FAS: The financial sector ETF is in a consolidation pattern between $140 and $150. The chart is bullish over all. Look for entries at $140 and then adds over $150. Targets $170 and $185 by February 2022.
LABU: The biotech ETF remains in a range between $48 and $66. In early November it tried to break out but was sharply rejected. We'll see if it holds $51. A break below that level would be bearish. It is in a big wedging pattern now. Technically, the chart is neutral at best. For now, we are only looking at special situations in this sector. Too many other sectors are so much stronger.
SMH: The semiconductor ETF is in a strong rising channel after double bottoming in early October. After a sharp 2 day pull back the ETF made an inside day on Thursday and then continued higher on Friday. It is mid channel so it could consolidate in here. But the trend is very strong to the upside. Look for $310 and $320 on the short term.
GUSH: Oil has backed off from its highs but remains over $80/bbl. That is a lot of money for oil producers to make money. The E&P ETF is consolidating in a range between $108 and $122. Bullish above, bearish below. Our targets are still $135 and $150 (from a $74 entry level).
NUGT: With inflation at a 30 year higher, gold bullion continues to strengthen as gold comes back as a traditional inflationary hedge. The ETF is in a rising channel and is in wave 3 of a 5 wave move to the upside. Near term target $65. Look for it to fill the $68 gap. We should see $75 over the next 4 months.
Technical Indicators: The McClellan Oscillator is neutral at 15.31. 64.4% of stocks are above the 40 day moving average. We are neither over bought nor over sold. It is not broad participation in the markets with this strong move to the upside. So the broader market is neutral and could go either way on the short term. But VIX remains very bullish staying under the 20 level, now 16.29.
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