Stocks Reach New 2022 Lows; Attack 6 – 12 Month Support & Prepare for Bottom.
09/28/22 Weekly Re-Lay Alert – “Stock Indices set what were expected to be multi-week highs on Sept 12 – 16 and have since plunged with a majority of indexes now fulfilling their mid-Aug weekly trend signals that projected drops back to their mid-June lows.
The only one that has not (yet) spiked below its mid-June low is the same index that has maintained a different wave structure – showing a little more underlying resilience… the NQ-100.
All of the indexes dropped into the latest phase of a 14 – 15-week high-low-low-(low; Sept 21 – 30) Cycle Progression – one of the two most consistent NQ-100 & DJIA weekly cycles over the past ~15 years…
Keep in mind, this comes after the DJIA fulfilled upside price targets in mid-Aug ‘22, reaching ~34,200 where its mid-Aug buy signal had projected and where it – and most indexes – fulfilled the forecast for the largest rally of 2022.
That signaled it had completed its 3Q ’22 rally and was peaking one week after the 14 – 15 week high-high-high Cycle Progression had projected.
However, it was in sync with an overriding 33-week high-high-(high) Cycle Progression (almost equal to an ~8-Month Cycle, which is typically ~34/35 weeks).
The latest decline allowed the S+P 500 to attack 3 – 6 month support at 3560 – 3610/SPX while the NQ-100 re-tests a myriad of downside targets and 3 – 6 month support levels at 10,700 – 11,100/NQ (2022 HLS, multi-year range-trading support, 50% retracement of Dec ’18 – Nov ’21 advance, test of the Sept/Oct ’20 lows).
Meanwhile, the DJIA again attacked its most important level of resistance turned into support – the level of the Feb ’20 and Aug ’20 peaks at 29,200 – 29,600/DJIA.
The indexes remain in downtrends and would not show signs of bottoming until daily closes above 30,450/ DJIA, 3835/ESZ & 11,850/NQZ.”
Stock indexes have sold off into the recurrence of an uncanny ~15-Week Cycle that projects a 1 – 2 month bottom by/on Sept 30, reinforced by several indexes dropping to new 2022 lows.
On a broader basis, stocks are reinforcing longer-term analysis for a 1 – 2 year peak in early-Jan ’22 followed by a 6 – 12 month plunge in 2022. See related publications for additional analysis.
How Would Late-Sept ’22 Low Reinforce Overall 2022/2023 Outlook?
How High Could Oct ’22 Rebound Reach??
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.