Stocks Poised for Spike Low & New Advance.

Stocks Poised for Spike Low & New Advance.

04/23/18 Weekly Re-Lay Alert – April 24: Decision Day:  In many respects, and in several markets, tomorrow is an important Decision Day.  That applies to daily trend patterns, intermediate trends & cycles, and even multi-month moves.  This Alert is not intended to update every market, but rather to focus on those that are entering a decisive 1 – 2 day period.  For starters:

Stock Indices have pulled back since rallying into April 17/18 and fulfilling the intra-month uptrend signals.  At the same time, they perpetuated a 24 – 25 trading-day low (Dec. 29) – low (Feb. 6) – high (Mar. 13) – high (April 17/18) Cycle Progression.  A cycle high like that should hold for at least 5 – 7 trading days (if a market is in an uptrend and poised to set successive higher highs) or potentially much longer.

Several factors are arguing in favor of the former scenario (a ~1 – 2 week high that is soon broken on the way to higher highs, on a multi-week basis)…

— Intra-month trends remain up.

— Daily trends turned up during rally into April 18 and have since turned neutral twice.

— Daily 21 MARC just plummeted and will likely spur a reversal higher in the daily 21 MAC – tomorrow.

— Weekly trends failed to turn down, despite multiple opportunities.

— Weekly 21 MACs are in a tug-of-war, not yet turning down but entering a 1 – 2 week period when price needs to rally to prevent a downturn in 21 MAC.

— DJIA & ESM set today’s lows near the weekly 21 High MARCs.

— Potential for ‘easy’ weekly 2 Close Reversals higher – and potentially weekly 2 Close Reversal Combos higher – IF a new rally takes hold.

In many of these factors, April 24 could be the determining day… As explained on April 21, the weekly HLS levels are aligned close to the weekly Raw SPS levels – creating the potential for weekly 2 Close Reversal Combo signals (IF the indexes tested weekly support early in week and then rallied enough to close higher on the week).

This support is in a tight range in the S+P 500 and Nasdaq 100.  The Nasdaq also has its 21 Low AMAC reinforcing this support – all converging at [reserved for subscribers; see full Alert for details pertaining to potential sharp spike low and subsequent reversal higher]…

The only concern now, however, is that those levels are significantly below the daily trend reversal points.  As a result, the indexes would need to spike sharply lower and then rally strongly enough to avoid turning their daily trends down – IF they are indeed going to swing the 2- 4 week outlook into a bit more positive direction…that is still a distinct possibility… They have already spiked to new inter-week lows, so it would only take April 27 weekly closes above xx,xxx/DJIA, xxxx/ESM & xxxx/NQM to generate weekly 2 Close Reversals higher.

While that is turning into the more likely scenario, the opposing question has already been posed:  What if they turn their daily trends down tomorrow?

If that occurs, it would certainly negate some of this potential while leaving other bullish 1 – 2 week factors intact.  So, it would probably still spur a bounce – beginning within a day or two of that reversal signal… this action is creating an opportunity…

Intermediate traders can buy equity instruments at [reserved for subscribers]…

1 – 4 week traders can buy June e-mini SP futures at [reserved for subscribers]…”