On October 10, 2022, it was noted that the Dow was following its March 1, 2022 to March 8, 2022 15-minute futures chart. The Dow continues to develop a 15-minute futures chart similar to that of March 1, 2022 to March 14, 2022. Volatility is expected to increase over the next two to three trading days before moving higher while institutions and retail investors take extreme defensive positions.
Dow: October 11, 2021
Daily engrbytrade™ Dow calculations on October 11, 2022 indicate the Dow is in a similar position to where it was on October 11, 2021. Market makers continue to accumulate very large blocks of stock.
Stock chart courtesy of StockCharts.com.
Dow: 15-Minute Chart
The October 4, 2022 to October 10, 2022 15-minute futures chart appears to be a repeat of the March 1, 2022 to March 8, 2022 15-minute futures chart. A move higher is still expected.
Dow: Stock Distribution
Market Makers need a sharp rally to distribute very large quantities of stock they accumulated during September. When this distribution is complete, a significant decline is expected to start.
Stock chart courtesy of StockCharts.com.
SP500: How Far Down?
Dollar: Upper Trend Line
The chart below shows the US Dollar currently has a trend line that is similar to what was developed between 1991 and 2001. Each upper trend line has an angle of 26.26 degrees above the x-axis. When the US Dollar reaches this upper trend line a change in direction is expected to occur in other major currencies, interest rates, gold, silver, stock markets, etc. just as they did in 2001.
Stock chart courtesy of StockCharts.com.
Euro: Repeating structure
Intermarket Futures trading data calculations indicate the Euro is still in the process of completing a significantly larger structure that started in 2008 and is similar to what was developed between 1995 and 2001. The completion of the current structure would result in a target range of 0.81.
Stock chart courtesy of StockCharts.com.
Crude Oil: Move Higher
Weekly futures trading data calculations indicate crude oil will continue to move higher and reach 110 (+/- 4%) before changing direction. This move is expected to be similar to what occurred between February 2016 to June 2016, and December 2018 to April 2019.
Dow/SP500: October – November 2021
Based on a detailed review of Daily engrbytrade™ calculations, candlestick structures, accumulation patterns, etc. preliminary data indicates the Dow and S&P500 structures to be developed in October – November 2022 are expected to be similar and have a relatively larger scale than what was developed during October – November 2021.
Dow: June 15, 2008
On September 30, 2022, it was noted that “Commercial Futures Traders are positioned for the Dow to move back above 36,000 during the first quarter of 2023″. As of today, that expectation has not changed. Based on similarities of the 2007-2008 and 2021-2022 Dow structures illustrated below, a review shows a close of 10,962.54 on July 15, 2008 was followed by a higher close of 11,782.35 on August 11, 2008 before starting a significant decline going through September to November 2008. Market data calculations will need to be monitored closely over the coming weeks to see if Market Makers or bankers change priorities and start a decline earlier than expected.
Stock chart courtesy of StockCharts.com.
2021 – 2022
2007 – 2008
Silver: Decline Setup
Daily engrbytrade™ calculations show silver initiated the process of building a structure on October 3, 2022 that is expected to be similar to what was started on March 1, 2022. This will lead to a continuing decline in silver.
Stock chart courtesy of StockCharts.com.
Dow: 20 Years Later
The two charts shown below illustrate how structures repeat over different time frames and scales. The current decline is nearing completion, just as it did 20 years ago in September 2022. Note that angles for the trend lines in both charts are identical and drop 25.03 degrees from the X axis. This supports the Engrbytrade hypothesis that market movements are based on structures created prior to, and implemented during, the course of predetermined time frames.
Stock charts courtesy of StockCharts.com.
Dow: Undervalued
Weekly futures trading data calculations have shifted and indicate the Dow is significantly undervalued relative to the U.S. Dollar. Capital continues to move out of Europe pushing the U.S. Dollar higher. This flow of capital has created a distortion in relative values of various products, such as the Dow Jones Index. At this point calculations show the Dow will not have a sharp decline in 2022 as expected. Commercial Futures Traders are positioned for the Dow to move back above 36,000 during the first quarter of 2023.
The chart below provides key points where the Dow has been undervalued relative to the U.S. Dollar.
Chart courtesy of StockCharts.com.
Dow: June – August 2022
Preliminary data indicates the Dow repeats a June – August 2022 structure filling any remaining gaps. End-of-month data is still needed to confirm this.
Dow: Move Up Continues
Since September 23, 2022 the Dow has developed a Right-Angled and Descending Broadening Formation in the 15-minute chart. A move to higher levels is expected to continue.
Economy/Dow: Retail Trading
Key words from the media push pessimism in retail trading for Market Makers to acquire additional inventory.
A move up in the Dow is still expected.
Euro: December 2022
Based on current intermarket futures trading data calculations the Euro is expected to move down to 0.89 by the end of 2022 as the U.S. Dollar continues to move higher.
Dow: September 2004
To provide an illustration for a move up that is expected to occur between the last week of September 2022 and first week of October 2022, the following charts show a comparison between 2004 and 2022. The December 2003 to September 2004 Dow structure is not an exact replica, but is similar to the December 2021 to September 2022 Dow structure. Following this move up a decline will depend on Market Makers and bankers going into the end of the 2022 fiscal year. As data becomes available, adjustments may be needed.
Chart courtesy of StockCharts.com.
Dow: September 21 -23, 2022
The Dow completed its September 21 -23, 2022 decline sequence based on daily engrbytrade™ Dow calculations from price structures between October 11-13, 2021 and May 18 – 20, 2022. A move up to 32,122 (+/-1%) is expected based on today’s futures market price structure. Potential does exist for the Dow to move above 32,610, but additional daily data will be needed to see if the Dow continues to move higher.
Dow: August to September 2022
A repeat of the Dow structure from late August to early September 2022 is in progress. Daily engrbytrade™ Dow calculations show that by the third business day after September 21, 2022 (September 26, 2022) the Dow is expected to start moving higher. This is similar to what occurred after October 11, 2021 and May 18, 2022. A move up to 31,715 (+/- 1%) is expected in the futures market.
Chart courtesy of StockCharts.com.
Dow: September Falling Wedge
Today’s review indicates an attempt is in progress to complete a falling wedge. This could lead to filling gaps created on September 3, 2022 and August 22, 2022.
Chart courtesy of StockCharts.com.
Dow: Market Structures Repeating
The Engrbytrade hypothesis is that market structures are created and implemented during the course of predetermined time frames. This is based on observations that market structures continue to repeat. The current Dow futures structure is in the process of developing (and potentially repeating) a 12 calendar day structure similar to that of the 15-minute futures chart starting on 6:30 p.m. on June 12, 2022 to 10:45 a.m. on June 24, 2022. This does not mean the current futures structure will have a 12 day timeline. Financial market structures are not natural, such as a Fibonacci sequence, due to external adjustments made by algorithms or those who control prices and timelines. This is why time frames and price targets will continue to change. Current calculations show the Dow starting to fill the gap created on September 13, 2022 by September 27, 2022. Price and timelines are subject to change and updates will be provided as this structure develops.
Dow: September 13 Gap Update
Current calculations show the Dow futures index rate of acceleration indicates a fill for the gap generated on September 13, 2022 at 08:30 a.m. is expected after the NYSE market close on September 26, 2022.
Dow: September 13 Gap
Dow futures are moving quickly to fill a gap created on September 13, 2022 at 8:30 a.m. At the current rate of rise, it is expected that this gap will be filled by Friday, September 23, 2022.
Chart courtesy of StockCharts.com.
Dow: Brief Move Up
Note that a brief move up between September 20, 2022 and September 21, 2022 (during the FOMC meeting) is expected before making a sharp decline to the lower trend line shown below.
Chart courtesy of StockCharts.com.
