Stock Index Reinforce Projected Surge into early-Dec/~34,400/DJIA!
11/10/22 INSIIDE Track Update – “Stock indices are surging to new highs after providing the textbook setup for a ‘b’ or ‘2’ wave low on Nov 3. In order to reinforce the more bullish scenario (that projected the DJIA surging from its Oct 13 low near 28,660 up to its most synergistic upside target at 34,400 – 34,800 and the S+P 500 making it up to at least ~4050/ES in Nov ‘22), stock indexes needed to fulfill a pair of patterns in the opening days of November…
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.
That is exactly what they did…
They sold off into Nov 3 and twice neutralized their daily uptrends in the process. That meant the Nov 3 lows should be the intra-month lows and immediately became pivotal support for both the daily AND intra-month trends.
As long as these indexes did not close below their Nov 3 lows (31,727/DJIA, 3704/ESZ, 10,708/NQZ, 12,894/DJTA, 1758/QRZ, & 2326/IDX), they would remain positive and would likely see a new surge into mid-Nov. and up to monthly resistance (see above).
That remains the case.
In order to confirm that, stock indexes needed to rally and close above their Nov 1 – 3 highs (33,071/DJIA, 3928/ESZ & 11,619/NQZ) in order to turn the intra-month trends up and project additional upside into at least mid-month. That has just taken place on the heels of ‘cooling’ inflationary numbers in today’s CPI report.
Tomorrow’s close could add a key level of trend confirmation to this overall scenario. The DJIA has neutralized its weekly downtrend multiple times and needs a weekly close above 32,889/DJIA to turn that trend up and project additional upside.
All of this is fulfilling the previously-described ~12-Year Mid-Term Election Cycle… and a reinforcing ~24-Year Cycle (1974 – 1998 – 2022) that projected a 4Q ’22 DJIA rally of ~20%.
1962 – ~12% gain // 1974 – ~20% gain (from Oct ’74 low; before dropping back to low in Dec ‘74)
1986 – ~11% gain // 1998 – ~20% gain
2010 – 8 – 10% gain // 2022 – 20% gain??
2022 is the latest of these with cycles projecting strong rallies in Oct/Nov ’22. A ~20% gain – also seen in 1998 & 1974 (though the Oct/Nov 1974 rally – after advancing 20% from the Oct ’74 low – headed back to its lows in Dec ‘74) – would take the DJIA back to ~34,400/DJIA… right where the synergy of more bullish upside targets converge.
1 – 2 month traders could have entered long positions in the DJIA (or related stocks) on Oct 20/21 at 30,210 – 30,350/DJIA and be holding these. Risk [reserved for subscribers].” TRADING INVOLVES SUBSTANTIAL RISK!
Stock indexes are confirming the Nov 3 lows and reinforcing projections for the largest advance in 2022 – particularly in the Dow, capable of reaching 34,200 – 34,600/DJIA (see Oct ’22 INSIIDE Track for details) by/in early-Dec ‘22… even as tech stocks lag.
Most indexes fulfilled 9 – 12 month downside wave and price targets in Sept/Oct ‘22, projecting a subsequent higher-magnitude rally in 4Q ‘22. Oct 13 & 20 buy signals corroborated! The Nasdaq-100 remains relatively weak and should lag the DJIA.
How Does Late-Sept ’22 Low Reinforce Overall 2022/2023 Outlook?
Why was/is Higher-Magnitude Advance Projected for 4Q ‘22??
What Would Early-Dec ’22 Peak Signify?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.