Stocks Fulfilling Projected Oct/Nov ‘22 Surge; Could Reach 34,200 – 34,600/DJIA!
10/28/22 INSIIDE Track Update – “Stock indices are rallying strongly, powerfully validating the potential for multi-month bottoms in late-Sept/early-Oct ’22 followed by the largest advances in 2022. They perfectly fulfilled expectations for a 30 – 60-minute spike low on Oct 13 (following the release of the Sept ’22 CPI) and have rallied since then.
The DJIA remains under the positive influence of its Oct 14 weekly 2 Close Reversal buy signal – projecting 2 – 3 weeks of subsequent upside as the first surge. (That signal quickly validated the projected Oct 13 spike low and reversal higher.)
Most other indexes corroborated that, with reinforcing buy signals on Oct 19/20 that projected strong surges into early-Nov ’22.
This comes after many stock indexes perpetuated a ~16-week high (early-Nov ’21)-low-low-low-(low; late-Sept/early-Oct ’22) Cycle Progression that was expected to prompt a 2 – 4 week – and possibly longer – rally, likely to stretch into (at least) Nov ‘22.
If stock indices manage to turn their weekly trends up in November, they could extend this rebound into Dec ’22 and potentially attack their mid-Aug ’22 highs (4th waves of lesser degree described in Oct ’22 INSIIDE Track) – with multiple levels of key resistance hovering around 34,200 – 34,600/DJIA (4020 – 4050/ESZ & 12,500+/NQZ represent initial resistance in these indexes.)
This is a good time to reiterate the analysis on mid-term election stock market cycles that are in close sync with Solar/Sunspot Cycles. There is a ~12-Year Cycle (the closest possible election cycle to the ~11.2-Year Sunspot Cycle that has been cited many times with regard to expectations for 2020 – 2025) with regard to many of the larger 4th quarter stock market gains overlapping mid-term elections.
2022 is the latest of these with strong rallies projected for Oct/Nov ’22. There is a reinforcing ~24-Year Cycle (1974 – 1998 – 2022) that is providing important clues as to how large this rally could be…
1962 – ~12% gain
1974 – ~20% gain (from Oct ’74 low; before dropping back to low in Dec ‘74)
1986 – ~11% gain
1998 – ~20% gain
2010 – 8 – 10% gain
2022 – ???% gain
An ~15% gain would take the DJIA back to ~32,950. A ~20% gain – seen in 1998 & 1974 (though the Oct/Nov 1974 rally – after advancing 20% from the Oct ’74 low – headed back to its lows in Dec ‘74) – would take the DJIA back to ~34,400/DJIA… its more bullish upside target.
If the indexes reach 33,570 – 33,725/DJIA, 4005 – 4011/ESZ and/or 11,913 – 11,994/NQZ by mid-week, they could see a pullback in the ensuing days.
1 – 2 month traders could have entered long positions in stock indexes at the Oct 21 lows (20,210 – 30,350/DJIA, 3642 – 3675/ESZ & 10,940 – 11,090/NQZ) and be holding these with open gains of ~$12,500/contract in ESZ & ~$11,000/contract in NQZ.” TRADING INVOLVES SUBSTANTIAL RISK!
Stock indexes are holding late-Sept/early-Oct lows and projecting the largest advance in 2022 – capable of reaching 34,200 – 34,600/DJIA (see Oct ’22 INSIIDE Track for details). They have fulfilled 9 – 12 month downside wave structures and project a higher-magnitude rally in the coming month(s). Many other cycles & indicators concur. Oct 13 & 20 buy signals corroborate!
How Would Late-Sept ’22 Low Reinforce Overall 2022/2023 Outlook?
Why is Higher-Magnitude Rally Very Likely in 4Q ‘22??
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.