Stock Trading: ‘Largest Rallies of 2022’ Forecast to Reach Key Targets!
07/30/22 Weekly Re-Lay – “Stock indices are rallying, confirming mid-June bottoms and validating the outlook for an overall rebound into Sept ‘22. They were expected to enter a bullish multi-week phase on July 14 and fulfilled that with a July 14 low, triggering a pair of buy signals that remain mostly intact…
Stock Indices are further confirming cycles that bottomed on June 13 – 21 – at the same time several indexes spiked to 6 – 12 month downside targets and fulfilled almost all of the downside potential (price AND time) for the first 7 – 9 months of 2022.
In the case of the DJIA & NQ-100, they bottomed precisely at 1 – 2 year support levels surrounding 29,600/DJIA & 11,000/NQ. The June 30 ’22 monthly closes reinforced that analysis, signaling that a multi-month bottom was taking hold and a 1 – 3 month reactive rally was imminent.
Since that time, stock indices were/are expected to experience their largest rallies of 2022 – exceeding ~32,800/DJIA, 4180/ESU and 13,400/NQU. Those levels overlap early-June highs (DJIA & S+P 500) and the early-May high (NQ-100). Reinforcing that potential, recent action has projected likely tests of 33,400/ DJIA, 4250/ESU & 13,400/NQU for early-Aug.
On an intermediate basis, this current ~2 – 3 week rally should last into [reserved for subscribers]…
1 – 4 week & 1 – 2 month traders could have entered long positions in stock indexes during the July 14 sell-off as the indexes retested their early-July lows. Futures traders could have entered indexes with the same approach (entering longs down to their July 1/5 lows, like 3745/ESU).
Risk (exit on) a daily close below the July 28 lows. 1 – 4 week traders can exit all of these positions at 33,400/DJIA, 4250/ESU, 2620/IDX & 1970/QRU. 1 – 2 month traders can exit 1/2 at same levels.”
Stock indexes are reinforcing July 14 buy signals – the first pair like this in 2022. They project an initial 3 – 4 week advance and a larger overall advance. Within the next 1 – 2 weeks, they are expected to reach 33,400/DJIA, 4250/ESU, 13,400/NQU, 2620/IDX & 1970/QRU. This intensifies focus on Sept ’22 and what could be the most decisive time of this year. However, there are two critical cycles before then!
On a broader basis, stocks powerfully fulfilled projections for a decisive peak in early-Jan ’22 followed by a multi-month plunge in the first half of 2022. An overall 4 – 5 month decline was/is expected between that Jan ’22 cycle peak and the next (Sept/Oct ’22) cycle peak… ideally bottoming on June 13 – 21! That is when stocks bottomed and produced their first reversal signal. July 14 produced the next.
How Do the July 14 Buy Signals Corroborate 3Q ’22 Outlook?
Why is Sept ’22 Such a Decisive Period in the 2022/2023 Outlook??
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.