I don't think I'm going too far when I forecast that at least the NASDAQ-100 index (and thus also the NASDAQ Composite) should reach a new alltime-high in course of the next 5 to 10 trading days. For the Dow Jones Industrial Average and also for the S&P 500, fresh alltime- highs in this period are quite questionable.
Let's go back for a moment. As analyzed at this point a week ago, the NASDAQ-100 emini futures contract (NQ #) exactly parked above its most important bull market support. Its increasing 1*1 Bull Market Angle main support:
With the help of the weekly 31/32 Candles GUNNER24 Up Setup we decided that we had to prepare for 2 things. First, the outcome of the election should provide the solution to whether the yearslong determining 1*1 Bull Market Angle support out of the final low of 2018 will hold or not. A week close, or to be more precise, EVERY upcoming weekly close below the 1*1 Bull Market Angle would probably be a powerful & sustainable sell signal with longterm downtarget 8900 points sometime in spring 2021. Or, the above orange-dashed scenario would have to evolve.
First of all a bounce back into the very precisely defined lower line of 3rd double arc, which is a quite strong alltime-high resistance. Its heavy-strong negative rail because it is confirmed twice and responsible negative energy point where the bears stepped in at September alltime-high, but also have printed the small lower final high of October.
Second, followed by another downturn triggered by that lower line of 3rd bear energy that should test back the 1*1 Bull Market Angle again sometime in the near future... for the complete NQ # forecast of the last GUNNER24 Newsletter Edition click on the chart above or here on blue.
Now let's jump to the current situation of the NQ # and let me explain why a break to a new high is much more likely than a reversal down from a next Triangle top:
==> the NQ # will most likely deliver new alltime-highs soon:
The weekly NASDAQ-100 emini futures (NQ #) chart reversed up strongly this week to near the top of a 4-month trading range and its falling red Triangle resistance after last week’s big bear candle. This is a reversal up from a Double Bottom with the September low.
The so far 5 days long – lets call it „Biden Rally" – started on Monday at 10942.25 pts and at dark-green Triangle support what is in full sync to the above discussed 1*1 Bull Market Angle.
Therefore this dark-green Triangle supports represents a rising support on yearly base and at same time is nearest most important support.
This week formed a big bull trend bar. It closed exactly below the Triangle resistance and made top exactly at that main resistance rail.
Since this week:
1. Reversed up strongly from a Double Bottom, and
2. reversed up again at most important bull market support rail, and
3. re-conquered the 18 week Moving Average, and
4. the week closed nearly at highs, +++ printed bullish reversal candlestick, and
5. is highest week close ever, what per se is big Biden Rally continuation sign, and
6. last but not least fired a weekly Slow Stokes buy signal with MACD Histogram starting to rebound
==> the chart technical odd is extremely bullish for a bull breakout and the continuation of the Biden Rally!
From a chart technical approach the Triangle resistance is a braker in terms of price and once overcome a chart technical buy signal would arise. But of course this main resistance can also slow down the bulls from Monday on and trigger another Triangle leg lower, even if the price has already risen above it in the course of Monday, Tuesday etc.
The Triangle resistance is the nearterm hurdle as shown on the weekly NQ #. If Monday’s open gaps upwards, the opening gap could fail as the bearish Triangle resistance influence could be wider ranged.
However, if we take into account the rules of the GUNNER24 Forecasting Method, there is a view on things that lets us know very early if this Triangle resistance plans to give way. Most importantly, we get an early indicator for the or a sustained breakout above this Triangle resistance!
For this to discuss, we again overlay the weekly 31/32 Candles GUNNER24 Up at the famous 2018 Xmas low:
The week close is 100% accurately at, but shy below the lower line of 3rd double arc, what is the determining ATH resistance rail.
Alltime-high Triangle resistance is in harmony to the lower line of 3rd double arc.
I have seen this very special, very bullish approach to a GUNNER24 Arc too often to ignore this bullish sign! Such omen prepares the final skipping of the arc in terms of the time as in a GUNNER24 Setup the arcs are both together. Magnets regarding the price factor & the time.
==> The next week open could and is poised for skipping that price/time resistance magnet regarding the time factor.
And as soon as the NASDAQ-100 emini opens the coming week at or higher than 12100 points, the lower line of 3rd double arc main resistance would be skipped in terms of time and thus the upper line of 3rd double arc would automatically become the next natural, very important weekly upward target activated. Which would then have to be achieved very quickly with a probability - in this very special case - of over 90%!
==> GUNNER24 Signaling is as follows:
1. IF the NQ # opens at 12100 pts or higher it has the odd to reach the upper line of 3rd double arc main resistance magnet at 12616 within 1!!!!! to 5 trading days.
2. Alternatively, however, market could process the upper line of 3rd bull market target in course of the next 10 trading days at 12580 points.
3. Any Monday open above 12100 pts is – the NEXT – GUNNER24 Buy Signal on weekly base!
When you receive this forecast by email the weekend indication for the US stock market indices points to an weekly upward gap of approx. +0.3%.
So it seems that the NASDAQ-100 emini wants to open at around 12134 pts!! Something like that would already be above the high of the week, which came in at 12119.50 points!
Because the upper line of 3rd, like the lower line of 3rd has proved, would have to emit very strong natural resistance energy, we first have to wait and see what would happen after the likely soon due processing of the upper line of 3rd double arc.
Maybe after a hit of the upper line of 3rd there could start a longer and deeper downtrend cycle on the weekly chart = dark-red dashed arrow option, which could well test back the 1*1 Bull Market Angle again at its end ...
Hmm, hmm, think 2 consecutive future closings above the upper line of 3rd does signal another very strong overall bull market upcycle began at the Biden Rally low.