Stocks Fulfill April 2 Cycle Low; Rebound Underway.
Stocks Fulfill April 2 Cycle Low; Rebound Underway.
04/04/18 Weekly Re-Lay Alert – The Rally: Stock Indices completed their latest 3 – 5 day & 1 – 2 week sell-offs, bottoming on April 2 (with the Nasdaq 100 briefly spiking to a new low on April 4). In doing so, they fulfilled multiple short-term objectives and held key 1 – 2 week support levels – creating the ideal environment for a multi-day bounce.
If fulfilled, that could also validate the potential for a rebound high by/on April 6 and the onset of another decline. (Specific price indicators – like the daily & intra-month trends – could extend this rebound into next week, so they need to be the primary filters.)
Equities began the week by diving right toward weekly 21 Low MARC support, briefly spiking below weekly support while bottoming just above monthly support. The S+P also attacked & held its daily extreme downside target (HLS) on April 2 – portending a reversal higher in the ensuing days…
The April 2 low also completed a ~32-day high (Jan. 26) – high (Feb. 27) – low (Mar. 31 = Mar. 29 or April 2) Cycle Progression. Tuesday’s action provided some corroboration and honed the initial 3 – 5 day upside targets for this week…
At the very least, this rebound was/is likely to last into April 5/6. However, daily price action could extend that. The first thing that could show additional strength (strength on a 1 – 2 week basis instead of just a 3 – 5 day basis) would be for the intra-month trends to turn up. It would take daily closes above 24,308/DJIA, 2650/ESM & 6592/NQM to accomplish that.
Each of the indexes has a corresponding range of 3 – 5 day upside targets (aside from weekly resistance levels) – two that closely align with weekly resistance. They come into play at 24,715 – 24,741/DJIA (higher than weekly resistance), 2685 – 2697.5/ESM & 6768 – 6837/NQM (overlapping weekly resistance).
If/when they are tested, the daily trends should give some important clues as to what should follow. The daily 21 MACs & MARCs could also play a key role..”
Stock Indexes fulfill April 2 cycle low and project rebound to (at least) 24,715 – 24,741/DJIA, 2685 – 2697.5/ESM & 6768 – 6837/NQM. When those targets are reached, several key indicators should hone outlook.
See Weekly Re-Lay & INSIIDE Track for additional details.