Stocks Heighten Likelihood of Impending Peak; Russell 2000 Cycle High in Late-July ‘23.

07/19/23 – “Stock Indices remain positive with the DJIA fulfilling the potential for a spike high – and potential intermediate top… The DJTA, which has often led reversals over the past ~25 years, is arguing for a more significant peak in July/Aug ’23… based on its monthly & weekly trend patterns (see July 13, ’23 INSIIDE Track Intra-month Update) and the fulfillment of a 20-month low (Mar ’20) – high (Nov ’21) – (high; July ’23) Cycle Progression.

Like the S+P 500, a high on July 17 – 24, ‘23 would fulfill a ~24-week high-high-(high) Cycle Progression and complete subsequent rallies of equal duration (~4 months each).

Since its late-June pullback low, the Russell 2000 has also been arguing a new rally up to ~2,000+/RT where its declining monthly 21 High MAC intersects the Feb ’23 & Aug ’22 highs and recent weekly LHRs.  The current week’s HHR corroborated with resistance surrounding 2015.0/QRU… a level that is now being attacked.

While none of these indexes has yet shown signs of a multi-week top, the timing AND price levels are ripe for that to occur.  Now that price levels are being fulfilled, the significance of related cycles & timing indicators takes on greater importance.”

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Stock indexes remain in bullish but divergent 3 – 6 month cycles & trends and on track for multi-month peaks in the second half of July ‘23.  As it did in Nov ’21, the Russell 2000 is increasing signs of an impending multi-month peak but is still expected to extend its rally into late-July ’23 – when a decisive peak is most likely.

 

Is The Russell 2000 the ‘Canary in the Coal Mine’… or Just an Outlier?

What is Significance of Monthly 21 & 40 High MACs?

 

Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.