Russell 2000 & DJTA Fulfilling Wave ‘5’ Projections. NQ-100 Portends a Final Rally.
11/03/21 Weekly Re-Lay Alert – “Stock Indices have rallied to new highs and are now at a short-term decision point, basis their intra-month trends… stock indexes are likely to repeat a pattern seen repeatedly in June – Sept. In those cases, many stocks peaked early in the month and then sold off into the 18 – 20th of the month.
A peak on Nov. 4 or 5th would also perpetuate a ~60-day/~2-month low-high-high-high-(high) Cycle Progression in which peaks (preceded by a low in March ’21) were seen on the 4th – 7th trading day of every other month (May, July, Sept. and Nov?).
The interesting thing about that possibility is the next phase of that ~2-month pattern would arrive in early-Jan. ’22, the same time that multiple cycles project a more significant peak.
The Russell 2K has finally surged to new highs, fulfilling its weekly trend pattern and ushering in the potential for a 2 – 4 week peak in the coming days. That could lead to a reactive sell-off into late-Nov…”
Stocks continue to trace out a lengthy topping process that began with weaker equities and indexes peaking in May/June ’21 – the time for (at least) a 3 – 6 month peak. Other (stronger) stocks and indexes – like the S+P 500 and Nasdaq 100 – were/are projected to set a sequence of intermediate highs in May/June, early-Sept and now early-Nov ’21.
The Russell 2000 is fulfilling its monthly & weekly trend patterns as well as Elliott Wave structure – all of which projected a final surge following the Sept 20 cycle low. Some follow-through could be seen – with key upside targets a little higher than current levels – before an initial sell-off into late-Nov.
The DJTA has done the same – and has reached multiple major upside targets – setting the stage for a multi-month (or longer) peak. The NQ-100 is fulfilling a lower-magnitude wave ‘5’ rally but could see a pullback and subsequent rally in order to fulfill a higher-magnitude wave ‘5’ finale. Continued divergence is expected as the equity markets prepare for what could be a dramatic shift in 2022.
Where are the various indexes most likely to peak – in early-Nov and/or in 1Q ‘22? And how far could they drop into early-Dec ’21??
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.