Stock Indexes Holding Nov 3 Low; Reinforce Projected Surge into early-Dec/~34,400/DJIA.
11/07/22 INSIIDE Track Update – “Stock indices have consolidated after the DJIA fulfilled the potential for at least a 15% gain from its Oct 13, post-CPI spike low… and all the indices fulfilled their 2 – 3 week buy signals that projected rallies into the opening days of November.
The daily & intra-month trends 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).
The DJIA neutralized its weekly downtrend multiple times, needing a weekly close above 32,889/DJIA to turn that trend up and project any additional upside.
The recent surge fulfilled the minimum expected from an intriguing ~12-Year Mid-Term Election Cycle while a reinforcing ~24-Year Cycle (1974 – 1998 – 2022) could take the DJIA back to ~34,400/DJIA… where the synergy of more bullish upside targets converge.
(If the current intra-month low of 31,727/DJIA holds, the Dow will have also created an Intra-Month PLLR – and multi-week LLH – objective at 34,794/DJIA. There is a possibility, if both the mid-term election and the Nov 10 CPI report are deemed positive, that stocks could surge to that target quickly.)
In the short-term, the key is the intra-month trend pattern. In order to reinforce the more bullish scenario, 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.
They sold off into Nov 3 and twice neutralized their daily uptrends in the process.
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.
So, those levels are now decisive support for the 1 – 2 week and 2 – 4 week trends. As long as they hold, 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.
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/exit [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. Most indexes fulfilled 9 – 12 month downside wave structures and price targets, projecting a subsequent higher-magnitude rally in 4Q ‘22. Many other cycles & indicators concur. 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.