Stocks Signal Pullbacks (~12,200/NQ) Before Projected Surges to ~4300/ES & ~13,800/NQ.

02/04/23 Weekly Re-Lay – “Stock Indices are steadily rallying after bottoming in sync with weekly & monthly cycles in early-Jan ’23 – reinforcing the lows set in late-Sept/mid-Oct ‘22.  The majority remain positive on a 2 – 4 week basis while reinforcing an ongoing bottoming phase since mid-June & late-Sept ’22.

The next phase of that congestion was forecast for early-Jan ’23 – when another set of higher lows was projected for almost all indexes… followed by new rallies into March ’23.  That fulfilled a web of ~16-Week, ~20-Week & ~30-Week Cycle Progressions in diverse indexes – pinpointing the ideal time for the onset of a new 1 – 2 month advance.

Most indexes surged in January, with the S+P Midcap 400 projected to surge to ~2800 in 1Q ’23, the Russell 2K expected to make it up to ~2050 – 2100/QR (also a 50% rebound of its 2021/2022 decline) & the S+P 500 forecast to reach 4300+/ES.

Leading this 2023 rally has been the Nasdaq-100, which spiked to a new multi-month low on Jan 6, ’23 – fulfilling its ~30-Week Cycle – and then entered a ~15% surge that should ultimately take that index back to at least ~13,500 – 13,800 – the mid-Aug ‘22 high, a 50% rebound of the 2021/22 sell-off, a doubling of the Oct/Nov ’22 rally, and a doubling of the Jan ’23 rally…

Stock Indices broke out above their Nov/Dec highs but could see a quick pullback to retest those levels before resuming their uptrends.  This could result in a drop back to 12,200 – 12,300/NQH, ~1920/QRH & 2600/IDX.”

Stock indexes are fulfilling 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 (~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.  In the interim, stocks are fulfilling the potential for an initial high and could spur a pullback in the NQ-100 to ~12,200/NQ before a second surge becomes likely.

 

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.