Stocks Validating Resilience; Project Significant Rally.
Stocks Validating Resilience; Project Significant Rally.
05/05/18 Weekly Re-Lay: Stock Indices have dropped sharply from their April 17/18 peaks – after perpetuating a 24 – 25 trading-day low (Dec. 29) – low (Feb. 6) – high (Mar. 13) – high (April 17/18) Cycle Progression.
They entered the 2 – 4 week period when the weekly 21 MACs were most likely to turn down and promptly turned them down (in the DJIA & ESM) – reinforcing a multi-month topping process that is unfolding. The DJIA closed the week below its weekly 21 MAC for the seventh consecutive week but is having struggles attempting to elevate this decline to anything larger.
If that fails to occur by mid-May, equities would enter the time when a significant rally is more likely – corroborated by their weekly trends (which have failed to turn down) and their monthly cycles (which still portend another multi-month peak in late-June)…
Combined with the intra-month trends (which just turned up on May 4), this could generate a larger bounce… Stock Indices are mixed with the DJIA retesting multi-month lows as the NQM fulfilled analysis for a rally from its April 25 low into May 4. All three indexes turned their intra-month trends up, which could spur additional upside in the near-term. The daily trends – which cannot turn up until May 8 – should help clarify.
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Stock indexes just set divergent lows with the Nasdaq 100 showing renewed strength as the DJIA fails to show any additional weakness. This comes after the DJIA fulfilled projections for a sharp drop from late-Jan. into/through March 2018 (lowest daily AND weekly close was March 23, 2018) without turning its weekly trend down and is poised to trigger a sharper rally in the coming weeks.
The Nasdaq is in the strongest technical position and is more likely to retest its all-time peak, leading into monthly cycle highs in June/July 2018. That was reinforced by a multi-week low taking hold on April 23 – 27 while triggering bullish 1 – 2 month technical signals. See Weekly Re-Lay & INSIIDE Track for additional details.