The Dow/S&P500/NASDAQ are still expected to move higher. Algorithms are currently in the process of filling intraday gaps created during a volatile trading period after Jerome Powell’s speech on February 7, 2023.
Nasdaq: Key Words
As the Dow and S&P500 approach their structural peaks, the Nasdaq is also included in this group and is expected to fill a gap created in the 1-hour futures chart between August 19, 2022 and August 21, 2022 with a move above 13,247. Algorithms programmed with key words may trigger a sharp move upward and provide the means to fill gaps in the S&P500 and Nasdaq during, or after, Jerome Powell’s speech at 12:40 p.m. EST on Tuesday, February 7, 2023. This would align with a move of 8.5 trading days (+/- 1.5 trading days) after January 30, 2023 noted on February 1, 2023.
Stock chart courtesy of StockCharts.com.
Dow/S&P500/Nasdaq: Earnings
Nasdaq: Similar Retracement Structures
On January 19, 2023 it was observed that trading patterns in the Dow were similar within specific time frames from April 2022 and January 2023. A review of Nasdaq trades on January 20, 2023 revealed a retracement structure over the last three trading days is similar to five trading days between March 29, 2022 and April 4, 2022. The peak on March 29, 2022 occurred prior to the start of its decline going into April 2022.
Stock chart courtesy of StockCharts.com.
