Stocks Fulfilling Late-Oct Timing & Price Objectives; Poised for 4Q 2023 Rally.
10/25/23 – “Stock Indices have dropped to new intra-month lows after rebounding into mid-month (DJIA & S+P 500 set highs on Oct 17) and fulfilling their intra-month uptrends while testing & holding weekly resistance levels.
This latest sell-off comes after the NQ-100 peaked while perpetuating 6-week & 12-week cycles. Its Oct 12 high fulfilled a ~6-week/~42-day high-low (Mar 13) – low (Apr 25) – low (Jun 8) – high (July 18/ 19) – high (Aug 31/Sept 1) – high (Oct 12/13) Cycle Progression that recurs around Nov 23.
The NQ-100 turned its weekly trend down on Oct 20… pinpointing the current week as the ideal time for an initial spike low followed by a reactive bounce (since that trend signal is a lagging/confirming one). It has monthly support – an intra-month downside target – at 14,231 – 14,308/NQZ and weekly support at 14,319 – 14,341/NQZ – providing the ideal range for an initial low.
The Russell 2000 continues to decline and would complete a .618 retracement in time (19 wks up, 12 wks dn) – while completing the third consecutive ~4-week decline – if it bottoms this week.
A DJTA low in the current week would complete more wave symmetry with successive declines of 12 weeks in duration. It is targeting a drop to 13,600 – 13,700/DJTA where its monthly 21 Low MAC, monthly trend point & 6 – 9 month support overlap this week’s HLS.
The S+P Midcap 400 is attacking its 2 – 3 month downside target – and 2023 intra-year low – near 2350/ IDX after turning its intra-year trend back down. The Russell 2000 has also attacked its downside target.
While many of these indexes are reaching downside targets and support, while fulfilling timing indicators, that does not automatically signal a bottom. At the very least, the primary indexes would need to rebound and give daily closes above 33,450/DJIA, 4290/ESZ & 14,950/NQZ to show the first signs of reversing higher.”
Stock Indexes are poised to fulfill a myriad of downside objectives, wave targets, timing indicators and cycles in the coming week(s). That should usher in the projected 4Q 2023 advance – likely (ultimately) lasting into/through January 2024. Price action needs to clarify when a low is intact and when a reversal signal has been generated.
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Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.