Stocks Validating Intermediate Top. Subsequent Rally to Follow Pullback.
12/30/23 – “Stock indexes rallied into year-end and are expected to advance into the middle half of January ’24 and fulfill/complete the signals generated in late-October. A more substantial sell-off should follow…
Stock Indices remain on track for an overall rally from late-October ’23 into January ’24 – when a more significant top is still expected. That has been the focus throughout this entire period… and continues to be.
A high in January ’24 would fulfill their late-October buy signals, a myriad of daily & weekly cycles, and the latest phase of an uncanny ~24-Month/~2-Year Cycle.
In 2017/18, stocks rallied strongly from Oct ’17 into Jan ’18.
In 2019/20, stocks rallied strongly from Oct ’19 into Jan ’20.
In 2021/22, stocks rallied strongly from Oct ’21 into Jan ’22.
And in 2023/24, stocks began a strong rally in October ’23… and should advance into Jan ‘24.
If so, that would perpetuate a ~24-month low (Jan/ Feb ’14) – low (Jan/Feb ’16) – high (Jan ’18) – high (Jan/Feb ’20) – high (Jan ’22) – (high; January 2024) Cycle Progression…
On a 1 – 2 year basis, the DJIA remains on track to ultimately reach its multi-year LLH (39,107/DJIA) – ideally in January ’24 – and fulfill a major upside objective created by its 2020 & 2022 lows.
That level is reinforced by a multi-year range target at 39,000 – 39,200/DJIA, incorporating the Sept/Oct ’22 lows near 28,700, the Feb ’22 & Oct ’23 ‘midway’ lows near 32,200, and the Aug ’21, Feb ’22 & July/Aug ’23 highs near 35,700/DJIA.
When the DJIA closed above 35,700 in late-Nov ’23, it corroborated the late-October signals & reinforced projections for a surge above 39,000/ DJIA.
A spike above 39,000/DJIA would also double the magnitude of the previous ~90-degree decline – from late-July into late-Oct ’23. (A rally into January 22nd would match its duration.)
Last week’s LHR reinforced that target while new monthly resistance concurs. IF the DJIA sets an early-month low around 37,470, it would also create an Intra-Month PLLR – targeting a subsequent rally to ~39,025/DJIA.
Stock Indices are mixed with the DJTA, Russell 2000 & S+P Midcap selling off into month-end while larger-cap indexes rose. The opening days of January should set the tone for the ensuing weeks and potentially reinforce the outlook into mid-Jan.”
Stock Indexes remain positive since generating multi-week buy signals after fulfilling downside price & timing objectives on Oct 27/30, 2023. That ushered in the projected 4Q 2023 advance, expected to last into January 2024 and fulfill the latest phase of the uncanny 2-Year Cycle. Some volatile consolidation is likely before a subsequent rally into the middle half of January. The DJIA needs to stretch this into/beyond January 22nd to match/exceed the duration of its previous decline.
How High Could Projected Surge into January ‘24 Reach?
Why Would That Set the Stage for 1Q/2Q 2024?
What is in Store for 2024/2025?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.