Stocks Test & Hold Support; Rebound Likely.
Stocks Test & Hold Support; Rebound Likely.
04/02/18 INSIIDE Track Stock Index Update: Stock Indices confirmed the likelihood for another leg down (with the potential to accelerate into a spike low). After completing a normal 3 – 5 day rebound in 1 – 2 days (with the March 27 high), the indices remained in daily downtrends and reinforced their (previous) intra-month downtrends – signaling that another 1 – 2 week decline was underway.
That potential was reinforced by a decisive indicator – the weekly 21 Low MAC. For the first time in over a year, the DJIA & S+P 500 closed the week below their weekly 21 Low MACs during two consecutive weeks. That is a negative signal, almost on par with the weekly trend, but they still need to turn the direction of those 21 MACs down.
That would take intra-week drops below 23,310/DJIA, 2564/ESM & 6284/NQM to turn the direction of those channels lower – a primary focus for the current week. Those levels are intriguing since they are in close proximity to new monthly support. The S+P 500 just fulfilled this potential – dropping below 2564/ESM…
On a near-term basis, today’s spike low had several indexes testing and initially holding intermediate support levels. The DJIA retested its March 23 AND Feb. 9 lows, without closing below either one of them. That could provide some short-term support.
Ultimately, however, equities maintain the potential to stretch this decline into April 23 – 27, 2018. In the ideal scenario, that would include those indexes reversing their weekly trends to down – 1 – 2 weeks before that cycle low.”
Stock Indexes dropped to multiple support levels, accelerating lower into a likely 3 – 5 day (or even 1 – 2 week) bottom. At the very least, that should spur a sizeable rebound into April 5/6.
See Weekly Re-Lay & INSIIDE Track for additional details.