Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22
Best Metaverse Tech Stocks Investing for 2022 and Beyond - 14th Jan 22
Gold Price Lagging Inflation - 14th Jan 22
Get Your Startup Idea Up And Running With These 7 Tips - 14th Jan 22
What Happens When Your Flight Gets Cancelled in the UK? - 14th Jan 22
How to Profit from 2022’s Biggest Trend Reversal - 11th Jan 22
Stock Market Sentiment Speaks: Are We Ready To Drop To 4400SPX? - 11th Jan 22
What's the Role of an Affiliate Marketer? - 11th Jan 22
Essential Things To Know Before You Set Up A Limited Liability Company - 11th Jan 22
Fiscal and Monetary Cliffs Have Arrived - 10th Jan 22
The Meteoric Rise of Investing in Trading Cards - 10th Jan 22
IBM The REAL Quantum Metaverse STOCK! - 9th Jan 22
WARNING Failing NVME2 M2 SSD Drives Can Prevent Systems From Booting - Corsair MP600 - 9th Jan 22
The Fed’s inflated cake and a ‘quant’ of history - 9th Jan 22
NVME M2 SSD FAILURE WARNING Signs - Corsair MP600 1tb Drive - 9th Jan 22
Meadowhall Sheffield Christmas Lights 2021 Shopping - Before the Switch on - 9th Jan 22
How Does Insurance Work In Europe? Find Out Here - 9th Jan 22
Effect of Deflation On The Gold Price - 7th Jan 22
Stock Market 2022 Requires Different Strategies For Traders/Investors - 7th Jan 22
Old Man Winter Will Stimulate Natural Gas and Heating Oil Demand - 7th Jan 22
Is The Lazy Stock Market Bull Strategy Worth Considering? - 7th Jan 22
What Elliott Waves Show for Asia Pacific Stock and Financial Markets 2022 - 6th Jan 2022
Why You Should Register Your Company - 6th Jan 2022
4 Ways to Invest in Silver for 2022 - 6th Jan 2022
UNITY (U) - Metaverse Stock Analysis Investing for 2022 and Beyond - 5th Jan 2022
Stock Market Staving Off Risk-Off - 5th Jan 2022
Gold and Silver Still Hungover After New Year’s Eve - 5th Jan 2022
S&P 500 In an Uncharted Territory, But Is Sky the Limit? - 5th Jan 2022

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Where Will The US Stock Markets Take Us Next?

Stock-Markets / Stock Market 2021 Jul 04, 2021 - 06:07 PM GMT

By: Chris_Vermeulen


As we watched the NASDAQ and S&P 500 rally to the end of Q2:2021, many traders asked themselves “Will this rally continue throughout the early part of Q3:2021 and beyond?”.  Although we don’t have a crystal ball to tell you exactly what is going to happen, our price modeling systems, predictive modeling tools and trend analysis systems suggest we will likely see continued upside price trending through at least July 15th to 21st. After the middle of July, we may see another pullback in trends as the markets shift away from the reflation trade expectations and start to react to 2021 holiday/COVID expectations.

The reflation trade rally has been very impressive over the past 12+ months.  One simply can’t argue with the price range, trend and volatility that we’ve seen throughout all of 2020 and into the first half of 2021.  My team and I expect that volatility to continue, but at a slowly decreasing range into the end of 2021.  We also expect a price rotation/reversion may still happen in 2021 that may prompt an 8% to 12% downside price correction (possibly bigger).

Near the end of December, 2020, we published a research article (What To Expect In 2020 Part II – Gold, Silver, and SPY) showing what our predictive modeling system suggested was likely to happen throughout 2021 and into 2022 – predicting price action more than 12+ months in advance for many symbols.  The ES and the NQ both suggested a moderately strong potential for an early 2020 downside price rotation – which never happened.  The INDU and SPY suggested a late Summer/Fall deeper downside price rotation – which we are watching out for right now.

Be sure to sign up for our free market trend analysis and signals now so you don’t miss our next special report!

Overall, our price predictions for 2021 suggested a moderately strong upside price bias/trend for almost all of 2021 and into early 2022. Yet there were also signs that a correction/reversion event may be likely sometime between April/May 2021 and September/October 2021 for the US Major Indexes.

As we move into Q3:2021, we believe the upward trending will continue as earnings and results continue to support the reflation trade expectations.  Historically, there has never been a period where global central banks have poured so much capital into the global markets/economy.  We are living through a grand experiment related to supporting the global economy at a time when a global crisis has persisted over the past 10+ years.  The upward price trend will likely continue, until it breaks downward.  That is the big fear driving traders into hedging and price protection trades.

INDU targeting $36,000 in early Q3:2021

This first Weekly INDU chart highlights the extended upward price trend that is likely to continue throughout the early weeks of Q3.  In particular, we believe traders will pile into the Blue Chips, Technology, Semiconductors, Healthcare and various other sectors as earning data suggests continued revenue growth.

The Dow Jones will likely attempt to breach the $36,000 level before traders start to look for resistance.  As the new COVID-19 Delta strain is starting to become an issue, we may see various forms of economic shutdowns happening again in the near future.  So be prepared for states and nations to act in a manner that may be counter to your expectations (again).

NASDAQ Moving Quickly To $15k – May Rally To $16k In July 2021

This Weekly NASDAQ chart highlights the extended upward trending we’ve seen in various sectors over the post-COVID recovery trade.  Technology, Chip makers, Healthcare, Consumer products and many other sectors continue to rally quite nicely as buyers have shifted their focus over the past 15+ months.  The NASDAQ will likely target the $15,000 level very early in Q3:2021 and may push even higher – to levels near $16,000 on strong earnings.

It is very likely that traders will pile into the NASDAQ trend as data is released and the markets trend on expectations.  Quite literally, unless something disrupts the expectations/results, there is very little to stand in the way of this upside price momentum.  Obviously, as long as traders believe these valuations are suitable and believe there is no reason to be fearful of any downside price risks, they will continue to drive the NASDAQ higher and higher.

The accumulation of volume, shown by the increasing On Balance Volume indicator near the bottom of these charts, suggests that traders are already showing their hands in regards to forward Q2:2021 expectations.  We believe traders are already positioned for a rally throughout early July 2021 as earnings and data start to hit.  This is why we believe the markets will continue to rally higher through at least July 15th to 21st as the “tail wags the dog”.

After the bulk of earnings have been processed by the markets and traders, my team and I believe a period of profit-taking will start to unfold where broader price volatility may prompt some bigger trends.  Remember, the trend is your friend – until it isn’t.  So, stay prepared for the unexpected and watch for signs of weakness in major market sectors (like the Transportation Index and other leading sectors).

My team and I have been building and developing fully systematic algorithmic trading strategies for many years and can tell you that unless you have a solid foundation related to knowing when and where opportunities exist in market trends, you are likely churning your money in and out of failed trades. I will be presenting my two favorite strategies at the July Wealth365 Summit on July 13th at 4 pm and July 16th at 12 pm. The Summit is free to attend and offers unparalleled opportunities for learning…plus a potential prize or two!

Want to know how our BAN strategy is identifying and ranking various sectors and ETFs for the best possible opportunities for future profits? Please take a minute to learn about my BAN Trader Pro newsletter service and how it can help you identify and trade better sector setups.  My team and I have built this strategy to help us identify the strongest and best trade setups in any market sector.  Every day, we deliver these setups to our subscribers along with the BAN Trader Pro system trades.  You owe it to yourself to see how simple it is to trade 30% to 40% of the time to generate incredible results.

Have a great day!

Chris Vermeulen

Chris Vermeulen has been involved in the markets since 1997 and is the founder of Technical Traders Ltd. He is an internationally recognized technical analyst, trader, and is the author of the book: 7 Steps to Win With Logic

Through years of research, trading and helping individual traders around the world. He learned that many traders have great trading ideas, but they lack one thing, they struggle to execute trades in a systematic way for consistent results. Chris helps educate traders with a three-hour video course that can change your trading results for the better.

His mission is to help his clients boost their trading performance while reducing market exposure and portfolio volatility.

He is a regular speaker on, and the FinancialSurvivorNetwork radio shows. Chris was also featured on the cover of AmalgaTrader Magazine, and contributes articles to several leading financial hubs like

Disclaimer: Nothing in this report should be construed as a solicitation to buy or sell any securities mentioned. Technical Traders Ltd., its owners and the author of this report are not registered broker-dealers or financial advisors. Before investing in any securities, you should consult with your financial advisor and a registered broker-dealer. Never make an investment based solely on what you read in an online or printed report, including this report, especially if the investment involves a small, thinly-traded company that isn’t well known. Technical Traders Ltd. and the author of this report has been paid by Cardiff Energy Corp. In addition, the author owns shares of Cardiff Energy Corp. and would also benefit from volume and price appreciation of its stock. The information provided here within should not be construed as a financial analysis but rather as an advertisement. The author’s views and opinions regarding the companies featured in reports are his own views and are based on information that he has researched independently and has received, which the author assumes to be reliable. Technical Traders Ltd. and the author of this report do not guarantee the accuracy, completeness, or usefulness of any content of this report, nor its fitness for any particular purpose. Lastly, the author does not guarantee that any of the companies mentioned in the reports will perform as expected, and any comparisons made to other companies may not be valid or come into effect.

Chris Vermeulen Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in