DJIA Reaches ~25,300 Target; Peak Imminent; ~7300/NQ Still Attainable.
DJIA Reaches ~25,300 Target; Peak Imminent; ~7300/NQ Still Attainable.
06/13/18 Weekly Re-Lay Alert: Stock Indices continue to forge ahead – rallying from multi-month cycle lows in late-March 2018 into multi-month cycle highs in late-June/early-July. This latest advance, however, has been far more labored, uncertain and drawn out than previous advances…
A peak in the coming weeks would fulfill the latest phase of the ~5-month low-low-low-low-high-(high) Cycle Progression that timed the late-Jan. high and that – along with an overlapping ~10-month low-low-low-low-high-(high) Cycle Progression – projects a subsequent high in late-Nov./early-Dec. 2018.
As equity markets draw nearer to their late-June (5-month) cycle high, the potential for a peak and reversal lower grows exponentially greater. And, since a 5-month cycle has a 1 – 2 week margin of error, a realistic trader needs to be prepared to react to any valid reversal signals – whether or not they occur in perfect sync with that ~5-month cycle.
Equities have just set their highest daily closes on June 12 – exactly 5 months from when the (often leading) DJTA set its previous high close on Jan. 12. So, this action ushers in a decisive 1 – 2 week period when traders should be alert for any signs of a developing top and reversal lower.
In addition, all of the indexes rallied to test and hold their monthly resistance levels – fulfilling the intra-month uptrends and providing the ideal time for an intra-month peak. (This intra-month pattern differs from the weekly cycles, so it needs to be assessed on its own merits.)
The Nasdaq 100 has exceeded its (previous) intra-year high, fulfilling primary expectations for that index. It did that while reaching key weekly upside price targets detailed in the May 23 Alert (surrounding 7250/NQ but stretching up to 7313).
That coincided with the DJIA reaching multi-week resistance levels (~25,300) as it retested the upper range of a 3+-month trading range – at 25,309 – 25,335/DJIA.
For now, all three indexes are in intermediate uptrends that would not turn neutral until [reserved for subscribers].”
The DJIA has reached upside targets surrounding ~25,300 and could be setting an intermediate peak now. The Nasdaq 100 remains positive and could still spike above 7300/NQU before peaking (ideally on June 19 – 29). If a multi-month peak (and reversal lower) is set in the second half of June, it would reinforce more significant cycles surrounding Nov. 2018. See Weekly Re-Lay & INSIIDE Track for additional details and/or related trading strategies.