Bottoming Signs & Cycles Reinforced; S+P On Track for Surge Above 4300/ES.

01/14/23 Weekly Re-Lay – Stock Indexes continue to provide contrasting signals, reinforcing the congestion that has been in place for the past few months.  They bottomed in late-Dec/early-Jan while fulfilling multiple weekly cycles and weekly trend patterns.

During the Dec ‘22 sell-off, the primary indexes (except NQ-100) neutralized their new weekly uptrends multiple times… but did not turn them down – leaving them on track for a rally back to the Dec ’22 highs.  That also occurred after the NQ-100 set its lowest daily close on Dec 28, ’22 – fulfilling its weekly trend pattern while retesting and holding major 6 – 12 month support (10,700 – 11,000/NQ).

In all of the indexes, that action projected initial rallies into ~Jan 13/17 – when intra-month and ~30-degree/~1-month cycles converge (linked to recent highs on Dec 13, Nov 14/15 & Aug 15 as well as a low on Oct 13).  If spike highs are seen in the coming week (Jan 17), it would also fulfill a ~7-week low-high-(high) Cycle Progression.

Daily LHRs were hit on Jan 11, reinforcing the likelihood for 1 – 2 week peaks on Jan 13/17 (within 3 trading days of that signal).  Reinforcing that, most indexes tested weekly LHR convergences – reaching upside extremes on daily & weekly bases.”

Stock indexes are fulfilling bullish 4-Shadow Signals (triggered in 4Q ’22) that projected new surges in 1Q ’23.  Indexes like the Russell 2000 & S+P Midcap 400 are nearing their upside price targets (accomplishing what the DJIA did in 4Q ’22) while the NQ-100 and S+P 500 are projecting higher levels in the coming month(s) (to at least ~13,800/NQ & ~4300/ES) before their advances would have a better chance of peaking.

Those upside targets – and how/when they are reached – should reveal a great deal about what to expect leading into key cycles in late-July/early-Aug ’23.

What Did/Does 4Q ’22 4-Shadow Signal Portend for 1Q ‘23?

How High Could Latest Rallies Reach?

What Would Likely Follow Tests of ~13,800/NQ & ~4300/ES?

Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.