The monthly S&P 500 and NASDAQ composite cycles bottomed last week. There may be a minor pullback next month, but the overall uptrend is intact.
Netflix is likely to be a leader in this rally. The stock has been strongest in the month of January. From January 21st through February 15th, price has risen over 85% of the time over the last 22 years. Daily, the stock is oversold. Weekly, we can see that relative strength has been rising since the spring of 2022. The monthly cycle has led price higher, and there is no cycle high until May. The stock is likely to rally over $900 in the next month and to new highs by April.
1-Netflix Daily
2-Netflix Weekly
3-Netflix Monthly Cycle
Fifth Third Bancorp also reports earnings this week and this report is also likely to be met with buying. Here is why. Daily, there are higher lows in momentum. The January through April time period has been bullish for these shares. In fact, from January 20 through February 16th, the stock has risen about 73% of the time. From the 21st through May 10th, the stock has risen 68% of the time. The third graph is that of the strong monthly price cycle. Thus, we see a combination of both the seasonal static cycle and the monthly dynamic cycle rising at the same time. FITB shares are likely to rally back to the prior $49 high.
1-First Third Bancorp Daily
2- First Third Bancorp Monthly Histogram
3- First Third Bancorp Monthly Cycle
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