What’s Next for Stock Indexes, the 2-Year Cycle and the Overall Outlook for 4Q 2018?

What’s Next for Stock Indexes, the 2-Year Cycle and the Overall Outlook for 4Q 2018?

Wk Resistance:       2800.0 – 2806.0/ESZ     25,817 – 25,998/DJIA     7210.0 – 7261.0/NQZ

11/06/18 – INSIIDE Track Intra-Month Update: Stock Indices have rallied since bottoming on Oct. 26/29 while fulfilling daily cycles and reaching weekly extreme downside targets.  All the indexes were expected to then see an initial rally into Nov. 2 – 9…

The DJIA & ESZ have turned their daily trends up, confirming that this rebound is at least one degree/magnitude higher than the mid-Oct. bounce.  That is also in sync with the weekly trend pattern that projected a 1 – 3 week reactive bounce from the Oct. 29 low… That would be in line with a few key cycles that are most salient in the DJIA…

The DJIA has closely followed a ~7-week cycle all year.  It’s initial drop lasted just over 7 weeks.  It then created a 14-week low (Mar. 23) – low (June 25 – 29) – high (Oct. 1 – 5) Cycle Progression – leading into the decisive peak.

That second 14-week (low-high) move broke down into a 7-week low (June 25 – 29) – low (Aug. 13 – 17) – high (Oct. 1 – 5) Cycle Progression.  If that follows a normal sequence and produces an ensuing high 7 weeks later (low-high-high Cycle Progression), the DJIA would set its next high on Nov. 19 – 23 – during the early part of the late-Nov./early-Dec. time frame that has been in focus all year.

In between, the DJIA has daily cycles showing that a short-term low could be seen on Nov. 9 or 12.  So, a brief pullback could be seen – perhaps a quick reaction once the results of the midterms are distilled and digested.

Ultimately, the key for the 1 – 3 month and 3 – 6 month outlooks will be the weekly trends.  The weekly trends turned down on Oct. 26 and would [reserved for subscribers]”


Equities have surged after confirming a late-Oct. ’18 cycle low in fulfillment of a projected 2-Year Cycle plunge (10 – 15%) in October 2018.  The price action of Oct. 26 & 29 projected an initial surge into Nov. 5 – 9 with the potential for that rally to extend into Nov. 19 – 23.  In between, another quick sell-off is becoming very likely for Nov. 8 – 12.  Regardless of what the coming weeks produce, the real intriguing part is what could unfold in late-2018/early-2019.

Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.