Weekly Trends Project Equity Rally into Feb. 1, Potentially Feb. 4 – 8; Extreme Upside Targets Likely to Be Reached.
Weekly Trends Project Equity Rally into Feb. 1, Potentially Feb. 4 – 8; Extreme Upside Targets Likely to Be Reached.
01/22/19 INSIIDE Track Intra-Month Update – “Stock Indices remain in daily & intra-month uptrends, pulling back to begin the week after fulfilling intermediate projections for a rally from Dec. 26/27 – when the DJIA tested its 2018 downside target at 22,100 – up to 24,295 – 24,366/DJIA, 2637- 2646/ESH & 6752 – 6774/NQH.
Those primary upside targets were exceeded and the weekly downtrends neutralized on Jan. 18 – confirming that the late-Dec. low was of a higher magnitude than any other bottom of the past 3 – 4 months and that the latest rally was part of a larger-degree advance that could last into late-Jan./early-Feb. (as long as the daily trends do not turn down).
The weekly trend signal portends an overall advance that could stretch into early-Feb., providing enough time for a second neutral signal (on Jan. 25?) and then an ensuing spike high and 1 – 2 month peak – either on Jan. 28 – Feb. 1 or Feb. 4 – 8. Since that is only one indicator, others need to corroborate and/or clarify…
From a monthly cycle perspective, a peak in late-Jan. 2019 would arrive ~1-year/360 degrees from the late-Jan. ’18 peaks as well as during corroborating ~6-month (late-Jan. ’18 – late-July ’18 – late-Jan. ‘19) & ~4-month high – high cycles that are most evident in global indices (late-Jan. ‘18 – late-May ‘18 – late-Sept. ‘18 – late-Jan. ’19).
Based on daily/weekly cycles, that next high could stretch into Jan. 30 – Feb. 4 and perpetuate a ~60-degree high (early-Aug. ‘18) – high (late-Sept./early-Oct) – high (early-Dec.) – (high; Jan. 30 – Feb. 4) Cycle Progression.
If (and this still remains a big IF) the rally stretches into Feb. 4 – 6, it would also complete a 50% rebound (in time) of the 12-week/~84-day declines from early-Oct. into late-Dec.
The primary indexes tested and held their weekly support levels (see above) and daily HLS levels (daily extreme downside targets) today – while retesting their upside breakout levels and/or weekly trend neutral points (resistance now turned into support) – identifying what should be the extreme for a brief, intra-week pullback…
From a price perspective, the second set of upside targets comes into play at 25,324 – 25,462/DJIA, 2755 – 2765/ESH & 7104 – 7173/NQH and are still strong possibilities as part of these multi-week rallies. Those targets incorporated 3 of the latest 5 weekly LHRs, the monthly SPR (projected high) for Jan. 2019, and now also include the weekly 21 High MACs in the current week.
A rally to those levels would also match the magnitude of the entire April – Sept. rallies in each of the indexes.”
Stocks & stock indexes increasing likelihood for overall surge into early-Feb. and up to ~25,300/DJIA and ~7100/NQH. Weekly trends corroborate this and project a likely rally into Feb. 1, potentially stretching into Feb. 4 – 8 before a 2 – 4 week top becomes more likely. These trend signals are the key to 1Q 2019 outlook and could/should hone what to expect after early-Feb. (potential) peak.
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.