Stocks Project Powerful 4Q ’22 Surge (to 34,200 – 34,600/DJIA)!
10/24/22 INSIIDE Track Update – “Stock indices are fulfilling analysis for a new 2 – 4 week surge following an Oct 13 (post-CPI) spike lower and reversing higher. That was initially confirmed with the Oct 14 weekly 2 Close Reversal buy signal – projecting 2 – 3 weeks of subsequent upside as the first (likely) surge.
That was doubly confirmed on the Oct 21 weekly close, along with the 1 – 3 month buy signals triggered on Oct 20, when the DJIA neutralized its weekly downtrend while closing above its declining weekly 21 Low MAC. (All this occurred after stocks fulfilled the criteria and objectives for a wave ‘5’ decline – expected to be the final drop of the Nov ’21 – Oct ’22 sell-off.)
On a daily basis, the DJIA also completed a daily 21 MAC reversal bullish signal – first closing above its declining daily 21 High MAC and then turning the direction of that 21 MAC up within 1 – 2 trading days. The S+P 500 and NQ-100 are in the process of doing the same thing. Today’s action has corroborated that outlook and should spur a rally to (at least) weekly resistance.
Last week, the S+P 500, Nasdaq-100 & Russell 2000 futures all triggered their third consecutive daily 2 Close Reversals higher – a rare 3-Step Reversal higher – while the ESZ & NQZ also turned their daily trends up.
All of these daily & weekly signals were powerfully validating the recent lows – set as stock indexes perpetuated a ~16-week high (early-Nov ’21)-low-low-low-(low; late-Sept/early-Oct ’22) Cycle Progression. That was forecast to spur a strong 2 – 4 week – and possibly longer – rally, expected to stretch into (at least) Nov ‘22.
Even if this is just a moderate rebound, the DJIA should rally to ~32,000/DJIA, matching the magnitude of the comparable rally in late-Feb – mid-April ’22. That is right where the monthly 21 Low MAC comes into play and where the descending weekly 21 High MAC is this week It is where the DJIA would rebound .618 of its latest decline and is where the two of the latest three weekly LHRs converge (32,001 – 32,193/DJIA).
However, if the recent lows are going to hold for more than a month, which also appears very likely, this overall rebound should exceed those levels – potentially stretching into the first half of Dec ’22 and approaching the mid-Aug ’22 highs (see Oct ’22 INSIIDE Track for related analysis) – 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 at the Oct 21 lows and should now risk (exit on) a daily close below those (Oct 21) lows.” 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.