DJIA: Hurst Cycles - 30th September 2022
Price briefly bounces from 80 day nominal low in early September to reach our target of 32500. A sharp decline subsequently brings into focus the terminal phase of the 18 month component
Tools required: Nominal Model | FLD | FLD Trading Strategy | FLD Trading Strategy (Advanced) | Principle of Nominality | Underlying Trend
Analysis Summary
In our last report on the DJIA, we anticipated the next trough iteration of the 80 day component in early September. The bounce from that low was suitably weak, tracking the 40 week FLD once again (medium term chart below) before falling into what is an imminent 40 day component low, expected in the next few days. Despite the weakness, modest targets up at around 32500 from our last report were achieved:
From 1st September Report:
Resistance at the 40 week FLD is clear and that resistance reduces over the coming month as the FLD moves up. Expect price to track it to the level of around 32500 to 33000, a convergence of both 20 and 40 week FLDs.