Stocks Signal 1 – 2 Week Highs; S+P Reinforces Outlook for (Ultimate) Surge Above 4300/ES.
01/21/23 Weekly Re-Lay – Stock Indexes are mixed after bottoming in sync with weekly & monthly cycles in early-Jan ’23 and then rallying into mid-month. A 1 – 2 week pullback was expected to follow (though some indexes could spike above their mid-Jan highs first)..
Stock Indices continue to provide contrasting signals, reinforcing the congestion that has been in place for the past few months. The DJIA Indices (DJIA & DJTA), which led the Sept – Nov ‘22 and early-Jan ’23 rallies, topped in sync with this past week’s PPI Report – another example of hitting an extreme when corroborating news emerges.
In the case of these key indexes (and others), they fulfilled weekly trend patterns, attacked & held their mid-Nov ’22 highs, AND created a spike high on Jan 17 – 20 – fulfilling a ~7-week low-high-(high) Cycle Progression (that projects a future high in early-March ’23). That was corroborated by daily LHRs that were hit on Jan 11, projecting 1 – 2 week peaks by/on Jan 17 (within 3 trading days of that signal).
This also occurred in the week after most indexes tested & held weekly LHR convergences. While that does corroborate the potential for a multi-week high in some of those indexes, it does little to change the trading-range trading that has been unfolding since Sept ’22… and in some indexes since June ’22.
It still appears likely that stocks will [reserved for subscribers].”
Stock indexes are fulfilling bullish 4-Shadow Signals (triggered in 4Q ’22) that projected new surges in 1Q ’23. Indexes like the Russell 2000 & S+P Midcap 400 are nearing their upside price targets (accomplishing what the DJIA did in 4Q ’22) while the NQ-100 and S+P 500 are projecting higher levels in the coming month(s) (to at least ~13,800/NQ & ~4300/ES) before their advances would have a better chance of peaking.
Those upside targets – and how/when they are reached – should reveal a great deal about what to expect leading into key cycles in late-July/early-Aug ’23.
What Did/Does 4Q ’22 4-Shadow Signal Portend for 1Q ‘23?
How High Could Latest Rallies Reach?
What Would Likely Follow Tests of ~13,800/NQ & ~4300/ES?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.