Stock Trading: Stocks Poised to Re-enter Uptrends in Late-March; Reinforce Outlook for Overall Rally into late-April/early-May ’19.
Stock Trading: Stocks Poised to Re-enter Uptrends in Late-March; Reinforce Outlook for Overall Rally into late-April/early-May ’19.
03/23/19 Weekly Re-Lay: “Stock Indices experienced another sell-off into March 22… which is likely to extend into March 25/26. In many indexes, that represents the ‘c’ wave of an ‘a-b-c’ correction that has been unfolding since Feb. 19 – 25. A bottom in the coming days, if it holds above intermediate support, could spur rallies back to recent highs…
Stock Indices remain divergent with the DJIA, DJTA, Russell 2000, MMX and similar indices fulfilling projections for a ~4-week, ‘a-b-c’ correction from late-Feb. (Feb. 19 – 25) into March 22 (subsequently extended to March 25 – 26). The Russell 2000 has already fulfilled (minimum) that analysis by dropping below its March 8 low…
While that intra-week action is important, and could easily be fulfilled on March 25 or 26, the weekly close will be more significant. The DJIA & DJTA have twice neutralized their weekly uptrends and need weekly closes below 25,208/DJIA & 9,994/DJTA to turn those trends down. Conversely, if those indexes are to maintain the potential for higher highs in April/May, the weekly trends should not turn down…
Stock indexes fulfilled the potential for a new divergent top with the ESM & NQM fulfilling upside objectives (time and price) as the others turned down ahead and led the way. As observed on 3/20, the structure of the daily 21 MACs – in the DJ indexes – was projecting a quick, sharp 3 – 5 day sell-off as the ESM & NQM were testing monthly resistance. The daily trends are corroborating daily cycles and reinforcing the potential for a low on March 25 – 26. 7241 – 7281/NQM is initial support.”
Stocks completing corrective phase and remain focused on potential for additional upside into late-April/early-May. Nasdaq 100 should bottom at 7241- 7281/NQM and then enter new wave higher. This remains in the broader context of equities projected to set 3 – 6 month or 6 – 12 month lows in late-2018 (~3.25-Year Cycle) and then see a strong, multi-month rally into April/May 2019 (weekly cycles pinpoint late-April – early-May ‘19as ideal period for a peak) – reinforcing 40-Year Cycle parallels.
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.