Stocks Fulfilling Longest Rally of Last 3 – 4 Months; Upside Targets Still in Focus.
Stocks Fulfilling Longest Rally of Last 3 – 4 Months; Upside Targets Still in Focus.
01/08/19 INSIIDE Track Stock Index Update – “Stock Indices have confirmed a 2 – 4 week bottom (on Dec. 26) after fulfilling most of the outlook for 4Q 2018.
The Dec. 26 low perpetuated a 14-week high (Mar. 5 – 9) – high (Jun. 11 – 15) – high (Sept. 17 – 21) – low (Dec. 24 – 28) Cycle Progression and a corresponding 7-week high (Sept. 17 – 21) – high (Nov. 5 – 9) – low (Dec. 24 – 28) Cycle Progression. It also fulfilled a 16 trading-day high (Oct. 17) – high (Nov. 8) – high (Dec. 3) – low (Dec. 26/27) Cycle Progression.
That daily cycle has also governed the Major Market Index since mid-year, creating a 15 – 16 trading-day low (6/25) – high (7/17) – high (8/07) – high (8/29) – high (9/21) – high (10/17) – high (11/08) – high (12/03) – low (12/26 – 27/18) Cycle Progression that next comes into play on Jan. 17 – 18, when a subsequent low is also likely.
In the interim, equities were forecast to surge from their Dec. 26/27 daily & weekly cycles lows into Jan. 7 – 11 – when an overlapping, 14-week low-low-high-(high) Cycle Progression in the DJIA comes back into play. Corroborating that is the ~10-week cycle that has governed the Nasdaq 100 for the past 6 months.
A 9 – 10 week low-low-high-high-(high) Cycle Progression forecasts a multi-week peak for ~Jan. 9 – 16, 2019… Most important, however, will be price. So, the coming days should be decisive.
This rally was/is projected to reach the late-Oct. lows and corroborating resistance that includes pairs of weekly LHR levels (24,295 – 24,366/DJIA, 2637- 2646/ESH & 6752 – 6774/NQH).
In each case, those levels also represent the 50% rebound levels – recovering half of what was lost in 4Q 2018. The S+P 500 & Nasdaq 100 have reinforced those target ranges with daily & intra-week targets while the DJIA has expanded the range a little – down to ~24,100.”
Stocks are fulfilling the outlook for a sharp rebound in the first half of January. The Dec. 26/27 lows fulfilled daily & weekly cycles and triggered signals that projected sharp rallies to 24,295 – 24,366/DJIA, 2637- 2646/ESH& 6752 – 6774/NQ. Those levels should be met before a 1 – 2 week top becomes more likely.
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.