Stocks Reinforcing Likelihood for New Multi-Week Surges; NQ-100 Triggers Buy Signals.
01/06/23 INSIIDE Track Stock Index Update – “Stock Indices have initially bottomed in line with multiple weekly cycles and the weekly trend patterns. During the recent sell-off, the primary indexes (except NQ-100) neutralized their new weekly uptrends multiple times… but did not turn them down. That left them in positive territory, preparing for a January rally.
Combined with weekly cycles converging on Jan 3 – 9, that set the stage for an early-Jan low and subsequent rally into mid-Jan with most indexes capable of spiking to new multi-month highs as part of the next rally. That was reinforced by the intra-month trends turning up in all but the Nasdaq-100 (it would take a daily close above 11,182/NQH to do so).
Corroborating the potential for an intermediate low, the NQ-100 set its lowest daily close on Dec 28, ’22 (the lowest daily close since Sept ’21) fulfilling its weekly trend pattern while retesting and holding major 6 – 12 month support (10,700 – 11,000/NQ).
Inversely similar to how 2022 started, stocks are showing signs that their declines are running out of steam (in early-2022, it was their advances running out of steam) and that another intermediate rally could soon take hold. (In Nov ’21 – Jan ’22, stocks peaked, sold off, then rallied to a divergent peak in early-Jan ’22. In Nov ’22 – Jan ’23, stocks bottomed, rallied, then sold off to a potential divergent low in early-Jan ’23.)
If stock indexes are able to exceed their late-2022 highs, they would likely extend these rallies into March ’23 (see Jan ’23 INSIIDE Track for related analysis).”
Stock indexes fulfilled projections for large 4Q ’22 advances back to their Aug ’22 highs – led by the DJIA, which was forecast to reach 34,200 – 34,600/DJIA. Those 4Q ‘22 rallies generated new 4-Shadow Signals that auger new rallies in 1Q ’23.
A powerful convergence of weekly cycles & weekly trend setups corroborate that, pinpointing the beginning of 2023 as the time for a new 1 – 2 month surge to take hold. Today’s outside-day/2 Close Reversal buy signals (S+P 500 & NQ-100) and weekly 2 Close Reversal buy signal (NQ-100) are validating projections for a new ~2-month advance after recent declines ‘ran out of steam’ in late-Dec ‘22.
What Does 4Q ’22 4-Shadow Signal Portend for 1Q ‘23?
How High Could (Expected) 1Q ’23 Rally Reach?
How Would That Influence March ’23 Cycles?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.