Stocks Setting 1 – 2 Month Peaks; NQ-100 Poised to Retest Lows!
12/10/22 Weekly Re-Lay – “Stock Indices have pulled back in line with the weekly trend patterns and the intra-month (down) trend signals triggered earlier this week. This came shortly after the DJIA fulfilled ongoing projections (since late-Sept ’22) for an overall advance into late-Nov/early-Dec and to 34,200 – 34,600 – a 4th quarter gain of ~20% that fulfills the 12-Year & 24-Year Mid-Term Election Cycles. It peaked at 34,595/DJIA.
It also occurred as several indexes rallied back to, and remained just below, their mid-Aug ’22 peaks – the ‘4th wave of lesser degree’ upside targets for these rallies. Daily & weekly cycles would still allow for a subsequent peak in late-Dec ’22 – with the potential for divergent highs (higher highs in some stocks/indexes and lower highs in others)…
The NQ-100, continues to lag the others and reinforce its overall bearishness. The NQ-100 needs a weekly close above 12,236/NQH to turn its weekly trend up and to elevate this rebound to the next higher magnitude. Its failure to do that, and its Dec 9 re-entry into the weekly downtrend, could ultimately spur a retest of the Oct 13 low…
The Dec 12 action is critical. The DJIA is heading for monthly support with weekly indicators/support converging a little lower – at 32,750 – 32,800/DJIA. However, it would take daily closes below 33,418/ DJIA & 3945/ESH to turn the daily trends down and elevate/extend this decline. The NQH cannot do the same until Dec 14, at the earliest. Until that occurs, the underlying trends remain up.”
Stock indexes fulfilled projections for the largest advances in 2022 – led by the Dow, which was forecast to reach 34,200 – 34,600/DJIA in late-Nov/early-Dec ’22, on the heels of its Oct 20/21 buy signal. (See Oct & Nov ’22 INSIIDE Tracks & Weekly Re-Lays for details.) They have reached that objective, ushering in a potential topping phase that could hold for 2 – 3 months. These rallies have generated new 4-Shadow Signals that auger larger rallies in 1Q ’23.
Most indexes fulfilled 9 – 12 month downside wave and price targets in Sept/Oct ‘22, projecting a subsequent higher-magnitude rally in 4Q ’22 – back to/toward their mid-Aug ’22 highs. That has reached fruition with initial long positions triggering an exit signal near the highs and ushering in the time for a 1 – 2 month consolidation period.
What Does 4Q ’22 4-Shadow Signal Portend for 1Q ‘23?
What Would Dec ’22 Sell-off Signify… and Set Up?
How Would That Reinforce March ’23 Cycles?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.