Stock Indexes Nearing Major Upside Targets; Divergent High Likely in February ‘24!
01/20/24 – “Stock indexes fulfilled divergent expectations with weaker/smaller-cap indexes spiking to new lows and stronger/larger-cap indexes rallying to new highs surrounding mid-month. The Russell 2000 provided some intriguing signals of an intermediate low and could lead those indexes back up in the coming week(s)…
Stock Indices are expanding their divergence with the weaker indexes (DJTA, Russell 2000 & S+P Midcap 400) fulfilling expectations for spike lows around mid-month as the stronger indexes (DJIA, S+P 500 & NQ-100) spiked to new highs.
The Russell 2000 gave the clearest signal that a rally back to the highs – in at least that index – is very likely. As stated mid-week, the Russell 2000 dropped into a recurring 12 – 13-week cycle (Jan 17 – 26) while spiking down to its weekly 21 High MAC in the first ‘decision week’ for its weekly trend.
It had already neutralized its weekly uptrend twice – leading into this past week – reinforcing that an intermediate low was very likely in that index. It needed a weekly close below 1938/QRH to reverse that trend to down.
However, as is often the case when cycles and related indicators are signaling a low, a failure to provide that weekly close would signal a bottom. Reinforcing that, the DJTA & S+P Midcap 400 spiked down to related support and generated weekly 2 Close Reversals higher…
All of this heightens the focus on the year-opening range and the initial intra-year trends. The opening range for 2024 has been set. It would now take a weekly close – above or below the range of January 2 – 19th – to determine the new intra-year trend.
Stock Indices retreated after the DJIA, ESH & NQH turned their daily trends back up. They could only neutralize those trends – as the DJIA, DJTA, QRH & IDX spiked lower into mid-month (the target for their intra-month downtrends) – ushering in a new rally and showing that [reserved for subscribers]…”
Stock Indexes remain in positive trends with some indexes lagging. Additional highs are still likely in January 2024 – potentially leading to a divergent high in February 2024 while fulfilling the latest phase of the uncanny 2-Year Cycle in January/February 2024.
The DJIA is projected to surge to (potentially above) 39,100 as the S+P 500 and NQ-100 attack their respective 1 – 2 year upside targets (stemming from multi-year bottoming signals in late-2022).
When Will DJIA, S+P & NQ-100 Likely Reach Major Upside Targets?
What Would Signal a Multi-Week Peak? …a Multi-Month Peak??
Why is April/May 2024 Pivotal for Stocks?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.