Stocks Nearing Upside Price Targets; Jan. 17/18 is Pivotal Cycle.
Stocks Nearing Upside Price Targets; Jan. 17/18 is Pivotal Cycle.
01/16/19 Weekly Re-Lay Alert – NFLX: The Premier Proxy – “Stock Indices remain positive and have nearly fulfilled intermediate projections for a rally from Dec. 26/27 – when the DJIA tested its 2018 downside target at22,100 – up to 24,295 – 24,366/DJIA, 2637- 2646/ ESH & 6752 – 6774/NQH. If those levels are exceeded, confirming a reversal of higher magnitude, stock indices could surge to a combination of extreme upside targets – near [reserved for subscribers].
The next couple days should help hone more specific expectations… However, the impact of overriding weekly cycles could be starting to distort these daily cycles.
That is why price action is the most important factor and the one depended on for clarity. As of now, the intra-month trends are up and would not turn neutral until daily closes below 23,518/DJIA, 2539/ESH & 6462/ NQH. The daily trends are up and would not turn neutral until daily closes below 23,780/DJIA, 2567/ESH & 6524/NQH. The coming days need to clarify.
With the potential for a larger-magnitude bottom to have taken hold (in late-Dec.) it is helpful to step back and view the weekly charts and how they look. For example, this rally from late-Dec. is the longest and largest seen in several months. (That was expected and validated a higher-degree reversal was unfolding.)
From a broader perspective, it has barely lasted three weeks – a very short rally by most standards. In recent years, intermediate rallies have averaged between four and six weeks in duration (often combining multiple intermediate rallies to create larger-magnitude, 3 – 6 month advances). So, context is critical.
With the potential for a 2 – 3 day pullback (that either occurred on Jan. 9 – 14 or is still imminent) before another 1 – 2 week rally, it is important to note that many monthly and yearly cycles converge in the next two weeks – ushering in the potential for a larger-degree and somewhat longer-lasting peak if additional upside materializes. That might only be seen in certain stocks & indexes, creating some divergence.”
Stocks are fulfilling the outlook for a sharp rebound but maintain the potential to reach 24,295 – 24,366/DJIA, 2637- 2646/ESH & 6752 – 6774/NQ before a 1 – 2 week top becomes more likely. From a timing perspective, Jan. 17 – 18 is a pivotal cycle that could help clarify this outlook. It could also help determine what to expect leading into early-Feb. and subsequent cycles in late-Feb.
All of this action is powerfully validating the 2019 outlook for stock markets and for key cycles coming up in the next few weeks AND in the next few months. Could this outlook be clarifying what to expect from a geopolitical standpoint? …In the same way that 2018 pinpointed watershed events??
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.