Stock Index Pullbacks Fulfill Downside; Surge into early-Dec/~34,400/DJIA Still Projected.
11/05/22 Weekly Re-Lay – “Stock indices fulfilled analysis for strong rallies from Oct 20 into early-Nov with the DJIA reaching its 15%-advance objective while increasing the potential for another rally after an intervening pullback. The action of the weekly trends should determine how high and how long these rallies could extend…
Stock Indices rallied into mid-week and then entered the expected pullback after the DJIA fulfilled the potential for at least a 15% gain from its Oct 13, post-CPI spike low. This (initial?) rally took the indexes higher into early-Nov ’22 – fulfilling the outlook from the Oct 13 & Oct 20 signals and the Oct 14 weekly 2 Close Reversal buy signal – that projected 2 – 3 weeks of subsequent upside.
This comes after the DJIA neutralized its weekly downtrend for the second time on Oct 28. In order to turn that weekly trend positive, and project additional upside that could ultimately stretch into early-Dec, it needs to give a weekly close above 32,889/DJIA. Other indexes will need to concur.
The recent surge has fulfilled the minimum expected from an intriguing ~12-Year Mid-Term Election Cycle – that has timed 10 – 20% gains in the 4th Quarter of mid-term election years – and a corresponding ~24-Year Cycle (1974 – 1998 – 2022) that has timed ~20% gains.
A ~20% gain – also seen in 1998 & 1974 – would take the DJIA back to ~34,400/DJIA… right where the synergy of more bullish upside targets align.
1 – 2 month traders could have entered long positions in stock indexes on Oct 20… The DJIA triggered long positions at 30,210 – 30,350/DJIA on Oct 20/21… Risk [reserved for subscribers].” TRADING INVOLVES SUBSTANTIAL RISK!
Stock Indexes sold off into Nov 3 and twice neutralized their daily uptrends in the process. That fulfilled a pair of patterns necessary to prepare the way for a new advance. They needed to pull back during the first three trading days of the new month but not close below that range on any day after Nov 3. And, they needed to twice neutralize their daily uptrends but not turn those trends down.
They have done that and the daily & intra-month trends have identified critical support at the Nov 3 lows. That should not be broken if a new rally is going to take hold in the coming week.
As long as these indexes do not close below their Nov 3 lows (31,727/DJIA, 3704/ESZ, 10,708/NQZ, 12,894/DJTA, 1758/QRZ, & 2326/IDX), they will not turn their daily trends down and they will not turn their new intra-month trends down – paving the way for a new 1 – 3 week rally.”
Stock indexes are holding late-Sept/early-Oct lows and projecting the largest advance in 2022 – capable of reaching 34,200 – 34,600/DJIA (see Oct ’22 INSIIDE Track for details) by/in early-Dec ‘22. They recently fulfilled 9 – 12 month downside wave structures and project a higher-magnitude rally in 4Q ‘22. Many other cycles & indicators concur. Oct 13 & 20 buy signals corroborate!
How Does Late-Sept ’22 Low Reinforce Overall 2022/2023 Outlook?
Why was/is Higher-Magnitude Advance Projected for 4Q ‘22??
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.