Stock Index Turns Intra-Month Trend Up; Surge into early-Dec/~34,400/DJIA Projected.
11/09/22 Weekly Re-Lay Alert – “Stock indices continue to consolidate after the DJIA fulfilled the potential for (at least) a 15% gain from its Oct 13, post-CPI spike low as most other indices fulfilled their 2 – 3 week buy signals that projected rallies into the opening days of November.
The initial sell-offs identified critical support at the Nov 3 lows, which should not be broken if a new rally is going to take hold in the coming week(s).
That was just reinforced by the DJIA turning its intra-month trend up – by closing above the high of the Nov 1 – 3 trading range – before pulling back today. (The DJTA did the same thing, but most other indexes remain in neutral territory.)
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. That would also signify they remain in their recent 2 – 4 week uptrends.
In order to signal new strength, stock indexes need 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.
On an intermediate basis, the DJIA is also leading – neutralizing its weekly downtrend multiple times but needing a weekly close above 32,889/DJIA to turn that trend up and project any additional upside.
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 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, projecting a subsequent higher-magnitude rally in 4Q ‘22. Oct 13 & 20 buy signals corroborate! 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.