If the five major equity averages end 2021 with a positive weekly chart, January 2022 should be off to a solid start.
Dow Jones Industrial Average (DJI) And Nasdaq Composite (IXIC) There are positive weekly charts. S&P 500 Index (SPX) There is a positive but overbought weekly chart. Nasdaq Composite (IXIC) Flat 12x3x3 Weekly is a neutral weekly chart on slow stochastic readings.
Dow Jones Transport Average (DJT) And Russell 2000 Index (RUT) The 12x3x3 weekly slow stochastic readings are on the neutral weekly charts due to the downside. Strengthening may turn these charts into positive by the end of 2021, setting the stage for a positive stock market as early as January 2022.
When I write my first story about the stock market in January the weekly chart for key averages should be positive at the end of 2021. In addition, I would have new price and risk levels, and pivots for each equity average and for each. stock in the market.
The December 31st expiry would establish a significant level from my proprietary analysis. I will show the weekly level for the first week of January, the monthly level for the month of January, the quarterly level for the first quarter of 2022, the half yearly level for the first half of 2022 and the yearly level for all 2022.
Traders and investors need guidelines to assess the risk and reward of all stocks traded on the stock market and exchanges. I use daily and weekly charts and levels for my analysis.
My daily chart shows price bars for each day going back one year. I include 50-day and 200-day simple moving averages. A golden cross occurs when the 50-day SMA crosses above the 200-day SMA. A death cross occurs when the 50-day SMA crosses below the 200-day SMA. I like to buy weakness in the 200-day SMA. The horizontal lines below the stock price are the price levels from my analysis. The horizontal lines above the stock price are risky levels from my analysis.
My weekly chart shows price bars for each week going back five years. I include the five-week modified moving average and the 200-week simple moving average. Studying at the bottom of the chart is a 12x3x3 weekly slow stochastic reading that ranges from 00.00 to 100.00. A reading above 80.00 is overbought. A reading below 20.00 is oversold. Moving between 20.00 and 80.00 is positive. A fall between 80.00 and 20.00 is negative. A reading below 10.00 indicates that the stock is “too cheap to ignore.” A reading above 90.00 indicates that the stock is in an “inflated parabolic bubble”.