S&P 500 is in a period of indecision right now.  But since November 4th it came from a low of 2085 to a new all time high closing the week at 2258, nearly a 10% move.  But the index is at the top of the up trending channel and so at a point of resistance.  I would expect markets to consolidate or trend higher in here until the end of January/early February before any meaningful correction takes place. It looks like the NDX is finishing wave 4 of a 5 wave move as it broke above resistance this week.  It needs to play catch up to the other indices.  I would expect the NDX to rally strongly from here into the end of January.  If it is the start of the 5th wave, we should see the NDX trade up to 5200 from this level.  The Russell 2000 index (IWM) is displaying much the same pattern as the SPX and DOW trading at the top of the up trending channel.  It is unusual for the small caps to be leading the market as they are usually laggards, hitting new highs when the rest of the indices are rolling over.  But, if I look closely at the move, we may be just at the start of the 5th wave of a five wave pattern and will get a huge blow off in small caps coming into the correction I am looking for in late January.

The "Tranny" is a bit of a different picture.  It made a nominal new high last week and has pulled back forming a bull flag.  But the downward move has been on heavy volume.  Not always a good sign.  This pull back, though, could be the start of wave 4 of a five wave pattern.  Higher oil prices probably are the cause of the reversal as that directly impacts the profit margins of the transportation index.  Trucking and airlines were hit particularly hard on Friday.

Financials (FAS), which had been leading the market, look to consolidating at the end of wave 5 of a 5 wave pattern.  The index is also trading at the top of the long term up trending channel.  

Semiconductors (SMH) are a picture of strength.  Like the other indices (except NDX) it is trading at the top if its 7 year long term uptrending channel and right at lateral resistance.  Most of the components of the index have very strong charts such as AAOI, AMAT, AMD, AMKR, AOSL, NVDA and TSEM.

LABU (biotech ETF) has built a long term base and in November blasted higher trading up to resistance.  In the last month it has pulled back and is now sitting at support.  The pull back from the recent highs has been and orderly falling wedge (bullish) and should not be viewed as negative.  I would expect biotechs to break out of the wedge in a Santa Claus rally going into my late January/early February time frame where we should see a general consolidation of all indices.  But, next year, I am expecting it to be a huge biotech market.  

Gold (NUGT, JNUG, GLD and GDX) looks to be approaching a bottom.  They have sold off sharply and even JNUG has broken below its long term down trending channel line.  NGUT has gone from $40 to $5.50 since August.  It made 5 waves up and now 5 waves down.  You don't want to try to catch a falling knife but it is unlikely the ETFs go to zero.  I'll be watching this sector closely. It may need 1 year of Trump economics to knock the dollar off its lofty highs which would correspond with a turn around in the price of gold.

Oil has had a nice rally with news of production cuts coming from OPEC.  After a major 5 wave sell off in oil it appears to be making a base in here over the last 8 months. With the base building it could be the start of a new long term up trend for oil.   Oil stocks (ERX ETF) which are making higher lows and higher highs looks to be indicating that oil is turning around.