Cycles & Weekly Trends Project Equity Rally into Early-Feb.; Extreme Upside Targets in Focus.
Cycles & Weekly Trends Project Equity Rally into Early-Feb.; Extreme Upside Targets in Focus.
01/19/19 INSIIDE Track Intra-Month Update – “Stock Indices remain positive and fulfilled initial projections for a rally from Dec. 26/27 – when the DJIA tested its 2018 downside target at 22,100 – up to 24,295 – 24,366/DJIA, 2637- 2646/ESH & 6752 – 6774/NQH.
Those primary upside targets needed to be exceeded – and the Oct. lows violated (on the upside, since they had become support turned into resistance) – in order to confirm that the late-Dec. low was of a higher magnitude than any other bottom of the past 3 – 4 months. They have now accomplished that task.
If/when the indexes closed above those levels – and confirmed that scenario – they were expected to surge to a combination of extreme upside targets – at 25,324 – 25,462/DJIA, 2755 – 2765/ESH & 7104 – 7173/NQH. Those targets incorporated 3 of the latest 5 weekly LHRs, the monthly SPR (projected high) for Jan. 2019, and now also include the projected levels for the weekly 21 High MACs in the coming week.
A rally to those levels (which is now more likely) would also match the magnitude of the entire April – Sept. rallies in each of the indexes.
The weekly trends just turned neutral. While that signal would allow for this advance to extend into late-Jan/early-Feb., an initial spike high could be seen by/on Jan. 23 if stocks surge to those extreme levels by then. Those weekly trends are one of the most critical components in determining what to expect in the coming months.
A peak in the next two weeks would arrive ~1-year/360 degrees from the late-Jan. ’18 peaks as well as during corroborating ~6-month & ~4-month high – high cycles that are most evident in global indices. If a final high stretches into Jan. 30 – Feb. 4, it would also perpetuate a ~60-degree high-high-high-(high) Cycle Progression that includes the late-Sept./early-Oct. & early-Dec. ’18 highs.”
Stocks & stock indexes validating potential for overall advance into early-Feb. when multiple weekly, monthly and annual cycles converge. DJIA could reach 25,300 and Nasdaq 100 attack 7100/NQH by/in early-Feb. Weekly trends, which could provide powerful confirming signal as soon as Feb. 1, are key to 1Q 2019 outlook. Equities are already revealing what to expect after early-Feb. (potential) peak.
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.