NQ-100 Buy Signal Projects Surge to ~7250/NQ & ~25,300/DJIA.
NQ-100 Buy Signal Projects Surge to ~7250/NQ & ~25,300/DJIA.
05/23/18 Weekly Re-Lay Alert: Stock Indices remain in intra-month uptrends and in daily uptrends, after pulling back and twice neutralizing those daily trends… but not turning them down. That projects a retest of recent highs.
The weekly trend patterns continue to portend congestion – turning from up to neutral (multiple times) but failing to turn down.
The Russell 2000 spiked to a new all-time high, initially fulfilling the potential for at least one index to retest its Jan. ’18 peak. Others could follow suit, with the Nasdaq 100 maintaining the best chance of retesting its 2018 peak.
Meanwhile, the DJIA remains in the lower half of its Dec./Jan. trading range – the range that has contained equities, for the most part, since early-2018. The S+P 500 is hovering just above its mid-range (~2710/ESM) – finding support each time it dips below that level.
With respect to the Nasdaq 100, it has 2 of its latest 3, 4 of its latest 6, and 5 of its latest 8 weekly LHRs grouped at 7120 – 7274/NQM. They surround the March 2018 peak (7214/NQM) and come in just below May 2018’s monthly LHR(7313/NQM).
Today’s spike low (6829/NQM) created a multi-week LLH objective at 7229/NQM (when incorporated with the April 25 low of 6429/NQM).
More importantly, the low tested the ascending daily 21 High MAC and immediately reversed higher – closing well above that channel at day’s end. That is usually a sign of renewed strength that could spur a quick rally to (at least) new multi-week highs.
The current weekly LHR – and therefore the one that holds greatest sway – is at 7255/NQM.
If the Nasdaq 100 is going to extend its rally into late-month – after validating its daily & intra-month uptrends – it could wait and set another weekly LHR near the same level for next week. In order for that to occur, the NQ-100 would need to set this week’s peak around 7054/NQM – creating a new LHR at 7254/NQM.
The DJIA is in a far less bullish set-up but could see a quick rally…Consider the following factors that are lining up in the DJIA for next week:
— Weekly 21 High MARC is 25,299/DJIA.
— Weekly 21 High MAC is ~25,285/DJIA.
— Year-opening (first week) high is 25,299/DJIA.
— Weekly resistance levels and/or daily LHRs could corroborate.
It is possible that the Nasdaq 100 could spike to a new high while the DJIA rebounds to ~25,300 – retesting the three highest weekly closes since early-Feb. (the confirmed upper range of a 3+-month trading range – at 25,309 – 25,335/DJIA).
From a daily cycle perspective, the NQ-100 did set a daily high last week, arriving before the recent spike highs in the DJIA & ESM. That is consistent with what was discussed last week.
Since that high has been validated by holding for almost two weeks, and since the NQM did not turn its daily trend or daily 21 MAC down nor neutralize its intra-month uptrend, price action is projecting a rally to new highs.”
The Nasdaq 100 just triggered another multi-week buy signal and could see a surge to ~7250/NQM as the DJIA is poised to spike up to ~25,300. Stock indexes remain in broad congestion but above cycle lows in late-April & early-May after the DJIA fulfilled projections (detailed since mid-2017) for a sharp drop from late-Jan. into/through March 2018 (lowest daily AND weekly close was March 23, 2018).
That multi-month low occurred without the primary indexes turning their weekly trends down, a decisive signal that projects a rally back toward the late-Jan. highs. See Weekly Re-Lay & INSIIDE Track for additional details and/or related trading strategies.