Nasdaq 100 Peaks at ~16,700/NQ Target; Stocks Confirming Decisive Highs.
11/26/21 INSIIDE Track Update – “The more important aspect of this action, however, might be what it does to validate and initially fulfill analysis described in the Nov ’21 INSIIDE Track with the Russell 2000 first rallying to exactly where it needed to reach before entering this November swoon…
The Russell 2K fulfilled that upside target during intermediate cycle highs on Nov 4 – 9 – and peaked precisely at its multi-year (upside) trading range target (1710 high – 960 low – (1710 -) 2460/QR peak) – ushering in the time for a ‘more substantial sell-off’.
That 2460/QR objective had been reinforced by the Mar ’21 low (~2085/QR) – precisely at the midpoint of that overall projected trading range (1710 – 2460), which supported declines in May, July & Aug ’21. That created a corresponding trading range target (1710 – 2085 – 2460/QR) at the same 2460/QR level.
2085/QR is now the ‘4th wave of lesser degree’ support (the low before this culminating rally) – heightening its significance.
This past week’s drop reinforced the peaks set on Nov. 4 – 9 (fulfilling ~60-day/~2-month low-high-high-high-(high) Cycle Progressions and projecting multi-week highs at that time) and the corresponding implications of those highs – from a ~2-month, ~4-month, ~8-month & ~16-month cycle basis.
Those early-Nov highs corroborated the early-Sept ’21 peaks, which had perpetuated a ~4-month high-high-high Cycle Progression (next recurring in Jan ’22) while reinforcing the prevailing ~8-Month & ~16-Month cycles. The Nov 4 – 9 peaks fulfilled an intervening and reinforcing ~60-day/~2-month low-high-high-high-(high) Cycle Progression – that would have its next phase in early-Jan ’22. The longer the early-Nov ’21 highs hold, the more convincing and more significant they – and the impending Jan. ’22 cycles become.
As also discussed throughout the past 6 – 9 months, the ~2-Year Cycle also recurs in Jan/Feb ’22 and portends a multi-month peak at that time.
The Nov ’21 cycle highs (timing) were reinforced by multiple price objectives – including the 2460/QR target in the Russell 2000. Tech stocks concur – with the Nasdaq-100 peaking right at its multi-month upside target. After fulfilling its multi-month upside target (~16,700/NQ), the NQ-100 turned its daily trend down – joining the other equity indexes in this latest sell-off. It has key support near 15,700/NQZ.”
Stocks have fulfilled major upside targets with the NQ-100 recently joining the Russell 2000 and DJTA (which hit major upside targets in early-Nov) by spiking up to 16,700/NQZ – ‘where a myriad of upside objectives converge’ and setting a decisive peak.
In early-Nov, the Russell 2000 fulfilled its monthly & weekly trend patterns as well as Elliott Wave structure – all of which projected a final surge following the Sept 20 cycle low. It reached pivotal upside targets near 2460/QR, projecting a subsequent (larger-magnitude) sell-off toward 2085/QR.
The DJTA was similar – reaching multiple major upside price targets in early-Nov and setting the stage for a multi-month (or longer) peak. Continued divergence is expected as the equity markets prepare for what could be a dramatic shift in 2022.
What are ramifications of DJTA, Russell 2000 and NQ-100 attacking multi-month or multi-year upside targets? What does this mean for next sell-off??
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.