Stock Indexes Remain Positive; Project Powerful 4Q ’22 Surge!
10/29/22 Weekly Re-Lay – “Stock indices are validating the potential for a multi-month low and the largest advance of 2022 after triggering a spike low & reversal higher on the Oct 13 CPI report and then reinforcing that with new buy signals on Oct 19/20. This should spur further upside into early-Nov and could stretch a rally into Dec ’22…
Stock Indices are rallying strongly, powerfully validating the potential for multi-month bottoms in late-Sept/early-Oct ’22 followed by the largest advances in 2022 (that could stretch into Dec ’22).
The DJIA remains under the positive influence of its Oct 14 weekly 2 Close Reversal buy signal – projecting 2 – 3 weeks of subsequent upside as the first surge. Most other indexes corroborated that, with reinforcing buy signals, on Oct 19/20 and projected strong surges into early-Nov ’22.
This comes after they fulfilled a ~16-week high (early-Nov ’21)-low-low-low-(low; late-Sept/early-Oct ’22) Cycle Progression that was expected to prompt a strong rally into at least Nov ‘22.
If stock indices manage to turn their weekly trends up in November, they could extend this rebound into Dec ’22 and potentially attack their mid-Aug ’22 highs (4th waves of lesser degree described in Oct ’22 INSIIDE Track) – with multiple levels of key resistance hovering around 34,200 – 34,600/DJIA. (4020 – 4050/ESZ & 12,500+/NQZ represent initial resistance in these other indexes.)
Then there is an intriguing ~12-Year Mid-Term Election Cycle. 2022 is the latest of these with strong rallies projected for Oct/Nov ’22. There is a reinforcing ~24-Year Cycle (1974 – 1998 – 2022) that is providing clues to how large this rally could be…
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 – 15 – 20% gain??
A ~15% gain would take the DJIA back to ~32,950. A ~20% gain – 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… its more bullish upside target.
1 – 2 month traders could have entered long positions in stock indexes from the Oct 19 close to the Oct 21 lows – at ~30,200 – 30,450/DJI, ~3645 – 3710/ESZ & ~10,950 – 11,150/NQZ – and be holding these w/avg. open gains of about $10,700 (NQ) – $11,500 (ES)/contract. TRADING INVOLVES SUBSTANTIAL RISK!…
Stock Indexes are reinforcing the Oct 13 spike lows and analysis for multi-week rallies from there. If the indexes reach [reserved for subscribers] by mid-week, they could see a pullback in the ensuing days.”
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). They have fulfilled 9 – 12 month downside wave structures and project a higher-magnitude rally in the coming month(s). Many other cycles & indicators concur. Oct 13 & 20 buy signals corroborate!
How Would Late-Sept ’22 Low Reinforce Overall 2022/2023 Outlook?
Why is Higher-Magnitude Rally Very Likely in 4Q ‘22??
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.