DJIA Remains Likely to Retest Jan. ’18 High… Before Substantial Decline.
DJIA Remains Likely to Retest Jan. ’18 High… Before Substantial Decline.
09/01/18 Weekly Re-Lay: Stock Indices are fulfilling bullish signals generated on Aug. 15/16 with the NQU just spiking up to test and hold its weekly extreme upside target (LHR). A September correction remains a strong possibility, with the weekly trends expected to play a key role…
Stock Indices remain in weekly uptrends with the S+P recently spiking to new highs and fulfilling the weekly trend pattern created in early-Feb. The DJIA has not yet fulfilled a similar weekly trend pattern and – along with the DJTA – has not turned its intra-year trend up.
This leaves them in an ~8-month trading range, similar to many global indexes. And, even though the expected June/July peak did not materialize, another peak is still expected in late-2018…In the interim, there is the potential for a quick, 2 – 4 week correction during the month of September…
The Nasdaq 100 just spiked up to its weekly LHR – at 7682/NQU – increasing the potential for a peak and reversal in the near future. With the S+P 500 – since the March ’09 low – just matching the duration of the 1990 – 2000 advance, it has completed a larger-magnitude form of wave equality that also argues for at least a reactive sell-off.”
Stocks are powerfully validating analysis for a topping process in 3Q 2018. The Indexes are poised to set 2 – 4 week peaks now, as the S+P 500 is signaling an overly-mature bull market – preparing for a sharp correction. The NQ-100 and key tech stocks are projecting significant peaks now, beginning with 2 – 4 week corrections in September.
DJIA is likely to retest Jan. ’18 high but remains on track for late-year drop to 22,100/DJIA – its primary downside target for 2018. The NYSE remains weak and could see sharpest drop in 4Q 2018.
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.