Stock Market Peaking; Nasdaq 100 Approaching Projected Top (~16,700/NQ).
11/20/21 INSIIDE Track Update – “Stock indexes reinforced the 3 – 6 month outlook (for a significant peak in 1Q ’22, ideally Jan ’22) by setting intermediate peaks on Nov 4 – 9 and fulfilling projections for a subsequent drop into Nov. 19/22…
Those early-Nov highs corroborated the early-Sept ’21 peaks, which had perpetuated a ~4-month high-high-high Cycle Progression (next recurring in Jan ’22) while reinforcing the prevailing ~8-Month & ~16-Month cycles. The Nov 4 – 9 peaks fulfilled an intervening and reinforcing ~60-day/~2-month low-high-high-high-(high) Cycle Progression – that would have its next phase in early-Jan ’22.
As also discussed throughout the past 6 – 9 months, the ~2-Year Cycle also recurs in Jan/Feb ’22 and portends a multi-month peak at that time.
The exceptions continue to be the S+P 500 & NQ-100 – spurred on by a minority of stocks – which rallied to new highs in fulfillment of their daily and weekly trend patterns and the ongoing outlook for the NQ-100 to reach 16,550 – 16,700/NQZ in Nov. That is currently being fulfilled and could spur a pullback.
The recent sell-offs also fulfilled a ~90-degree/~3-month high-low-(low) Cycle Progression in many key stocks as well as the DJTA, Russell 2000 & DJIA. This form of rotation could continue in the coming weeks as the perpetually-lagging indexes and stocks bottom while the S+P 500 and NQ-100 could initially peak and see some selling materialize before a new rally.
On Friday, the DJIA dropped right to its mid-Aug high as the Russell 2000 dropped right to its June & Mar ’21 peaks – key levels of resistance turned into support that could help determine if those indexes will remain capable of new highs leading into the more synergistic cycle peak in early-2022. As a result, Nov. 22 could be decisive.”
Stocks are fulfilling critical upside targets with the NQ-100 approaching ~16,700/NQZ – ‘where a myriad of upside objectives converge’ before a multi-month peak takes hold.
The Russell 2000 fulfilled its monthly & weekly trend patterns as well as Elliott Wave structure – all of which projected a final surge following the Sept 20 cycle low and signaled that a 3 – 6 month peak was/is very likely. It reached key upside targets and could now see a series of sharp sell-offs, before and after a projected (divergent) high in early-Jan ‘22.
The DJTA did the same – and reached multiple major upside price targets – setting the stage for a multi-month (or longer) peak. The NQ-100 is poised to spike up to ~16,700/NQ and fulfill a decisive wave ‘5’ objective – after which a broader, multi-month corrective period becomes very likley. Continued divergence is expected as the equity markets prepare for what could be a dramatic shift in 2022, beginning with a larger-magnitude decline following an early-Jan ’22 peak.
How Long Could ~16,700/NQ Peak Hold? Are Multiple Sell-offs Likely? What are ramifications of DJTA, Russell 2000 and NQ-100 attacking multi-month or multi-year upside targets??
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.