Stocks on Track for Powerful 4Q ’22 Surge (to 34,200 – 34,600/DJIA)!
10/26/22 Weekly Re-Lay Alert – “Stock Indices are steadily advancing with the DJIA reaching its initial upside target and the level where two of the latest three weekly LHRs converge (32,001 – 32,193/DJIA).
That is also where the magnitude of the current rally equals that of the late-Feb – mid-April ’22 rally… and where the monthly 21 Low MAC converges with the declining weekly 21 High MAC. It is where the DJIA has rebounded .618 of its latest decline.
That resistance acts as both an upside target – where a normal rebound was expected to reach – and a pivot point where the DJIA needs to exceed in order to signal that a higher-magnitude bottom is in place… and a higher magnitude advance is unfolding. That will be reinforced in Nov ’22 when the monthly 21 High MARC is at 32,009/DJIA.
Coinciding with the DJIA test of 32,100, the S+P 500, NQ-100, Russell 2000 and S+P Midcap 400 rallied right to their weekly resistance levels and initially peaked. Those highs are expected to be surpassed, in the coming week(s), but did usher in near-term pullbacks.
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.)
On the Oct 21 weekly close, the DJIA reinforced that signal – as well as the multiple trading signals triggered on Oct 20 – by neutralizing its weekly downtrend while closing above its declining weekly 21 Low MAC. At the same time, the S+P 500 & NQ-100 turned their daily trends up, reinforcing the likelihood that a multi-week and possibly multi-month low is intact.
The recent surge also fulfilled the 2 – 3 day buy signals triggered on Oct 20/21. At that time, the S+P 500, Nasdaq-100 & Russell 2000 futures all triggered their third consecutive daily 2 Close Reversals higher – forming a rare 3-Step Reversal higher – with the latest also being an outside-day/2 Close Reversal higher. New daily buy signals are now necessary.
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.
1 – 2 month traders could have entered long positions in stock indexes from the Oct 19 closing levels to the Oct 21 lows and now risk [reserved for subscribers].” 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.