Major US stock market indices are showing strong upside potential, especially the Nasdaq Composite and S&P 500 Index.
We are seeing a slight rally in the Russell 2000 (IWM), but the index remains above support and should rise slightly further. A mid-cap ETF (MDY) is testing the upside potential of its channel line. Long-term trends remain unchanged.
The Dow Transports Index has been very strong and the index is close to our MFU-4 target. We must be prepared for any sign of pause or rollback. Airlines are still looking very good and we have this chart on page 9.
I was surprised that utilities were out of their 4 month trading range. I now have a target growth zone for this group.
The semiconductor ETF (SMH) chart shows that the ETF is approaching its next target zone. We need to see if there will be a pause / retracement or breakout for the next step above. We’ll find out soon.
Elsewhere, the energy ETF (XOP) has recently fallen out of favor. This is a good place to add.
Industrial enterprises have shown a strong upward trend for 12 months. The price is approaching the MFU-4 target, so we will look for signs of resistance and a sell opportunity.
The author or his firm may have a position in the indicated securities at the time of publication. Any opinions expressed herein are solely the author’s and do not in any way reflect the views or opinions of any other natural or legal person.