Are Stocks Projecting Another Imminent Sell-off?
Are Stocks Projecting Another Imminent Sell-off?
11/07/18 Weekly Re-Lay Alert: Stock Indices continue their volatility, beginning the week with a quick pullback that allowed the NQZ to retrace 50% of its initial (Oct. 29 – Nov. 2) rally. It tested and held weekly 2nd Close Support (6893/NQZ) while declining for the first three days of the new month, in line with intra-month trend patterns. [When a market is likely to see a new rally, if often pulls back for the first three days but never turns its intra-month trend down.]
This also came after the DJIA & S+P 500 turned their daily trends up, ushering in the time for a quick 1 – 3 day pullback before a larger advance. The DJIA led the way back up, turning its intra-month trend up on Nov. 6 as it also closed above its daily 21 High MAC – breaking out of that channel to the upside. At the same time, it rallied above its still-ascending weekly 21 High MAC as well – leading to today’s acceleration higher…
This week’s rallies are corroborating and/or fulfilling all of those patterns. Keep in mind, however, that not all of the indexes need to fulfill that. It could be that the DJIA fulfills that weekly trend scenario while the NQ-100 remains weaker, as it has done for several weeks. It is even possible the NQ-100 fulfills its 5- & 10-week cycles, peaking by Nov. 9…
The indexes are moving at disproportionate rates with the DJIA in the strongest position while the NQ-100 lags. In divergent trends like this, the strongest market often identifies upside targets and cycles while the weakest helps time intervening lows.
The NQZ just reached its weekly resistance, weekly trend point, descending weekly 21 Low MAC and initial upside target… (7210 – 7261/NQZ), that could trigger another quick, 1 – 3 day pullback – potentially bottoming onNov. 12.”
Stock market volatility is increasing, leading to the latest surge into near-term cycles that peak on Nov. 5 – 9 with the Nasdaq 100 rallying right to multiple upside targets and resistance levels. That will likely lead to a quick, sharp drop into Nov. 9 or 12. Regardless of what the coming weeks produce, the real intriguing part is what could unfold in late-2018/early-2019.
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.