Stock Market Warning III: Jan. 20 – 24 Reversal Period Has Arrived; Portends Late-Jan. Sell-off!
01/22/20 Weekly Re-Lay Alert – Synergy: ~11-Week, 8-Month & 16-Month Cycles Concur: “Stock Indexes have entered a multi-week period when a myriad of competing cycles (some timing highs; others timing lows) converge in late-Jan./early-Feb. and usher in the potential for a quick, sharp sell-off.
They have rallied convincingly after setting another early-month low without turning their intra-month or daily trends down.
A peak in the current period would perpetuate an 11 – 12 Week high-high-high-high-low-low-low-low-high-(high) Cycle Progression in the DJ Transports, an index that also attacked its weekly LHR last week – increasing the likelihood for an imminent 1 – 2 month peak.
As explained many times previously, a peak in late-Jan. ’20 would also perpetuate the 16-month low-low-low-high-(high) Cycle Progression that helped anticipate the Sept. ’18 peak and which is illustrated on this page.
It would also perpetuate a related 8-month cycle (and an uncanny 2-Year Cycle).
Those cycles were validated by price action with the indexes spiking up to the convergence of multiple weekly LHRs (weekly extreme upside targets) and monthly resistance levels at 29,211 – 29,255/DJIA, 3304 – 3340/ESH & 9080 – 9156/NQH last week.
That had been anticipated as the ideal scenario before an intermediate peak would become likely.
The test of those levels indicates that a 1 – 2 month peak is now becoming more likely – ideally before the end of Jan. 2020. The first sign of reversals lower would be [reserved for subscribers]…
In the case of the Transports, they have already reversed lower and twice neutralized their daily uptrend. It would take a daily close below 10,991/DJTA to reverse that daily trend to down and confirm a multi-week top.
If this does occur, it could usher in a divergent top – with the Transports quickly entering a 1 – 3 day reactive bounce (normal after a daily trend reversal) as the primary indexes spike to final highs. The timing for potential ‘proxy stock’ highs is similarly divergent…
The bottom line remains that stocks are now in the midst of a 2-week period when an important, intermediate peak is a much higher probability.”
Stock indexes have entered pivotal week when intermediate peak and sharp sell-off is projected. Stocks have fulfilled ongoing forecast for rally into Jan. 20 – 24, ‘20 – the convergence of myriad cycles including an uncanny 2-Year Cycle and the 40-Year Cycle (as well as the 8-Month & 16-Month Cycles) – that should trigger a sharp sell-off in late-Jan./early-Feb. Primary indexes have reached upside price objectives for this rally – at 29,211 – 29,292/DJIA & 3307 – 3340/ESH – severely limiting any remaining upside potential. Look for sequence of reversals, in diverse stocks and indices, over next week.
How Sharp is Late-Jan./Early-Feb. Sell-Off Expected to Be?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.