Stocks Attack Multi-Year Price Targets!!
02/21/15 Weekly Re-Lay: “Stock Indices have all made it to new highs, validating the weekly trend patterns seen in the NYSE & Nasdaq 100 (that were able to generate two neutral signals against the prevailing weekly uptrends, but NOT able to reverse those trends to down)…the overall uptrends remain intact and have spurred spikes to new highs.
This has also kept alive a vital component of the (multi-year) upside objectives for Indices. In mid-2013, multiple signs of impending acceleration higher were examined.
That increased the chances that the Indices would surge into the culmination of multi-year cycles in late-2014. It also meant they could reach extreme upside targets as part of those advances.
The most noteworthy of those was/is in the DJIA – creating a synergistic range of extreme upside objectives at 18,150–18,550/DJIA. That target has been repeatedly discussed over the past 9–12 months and was the primary upside expectation that was not fulfilled in late-2014.
That multi-year target was recently reinforced when the DJIA tested & held pivotal 2–3 month support on Feb. 2nd, creating a new Intermediate LLH objective in the process… at 18,219/DJIA. The S+P 500 & Nasdaq 100 created similar LLH objectives at 2118.0/ESH & 4400/NQH.
Leading into the past week, the DJIA had corroborating resistance levels at 18,195–18,333 while the S+P had a tighter range of 1–2 week upside targets/resistance – at 2122.5–2125.0/ESH. These levels are – for all intents & purposes – repeated in the coming week.
I will be revisiting and updating these price targets in the March 2015 INSIIDE Track, but there is at least one key aspect & application of them that should be recognized immediately. It has to do with the oft-cited cycles coming into play in mid-April 2015…
As detailed in Oct. ‘14, a sharp decline into mid-Oct. 2014 was poised to perpetuate a series of ~90-degree & ~180-degree cycles (3-month & 6-month cycles) that projected future significance to mid-April 2015. To repeat from Oct. 15, 2014:
“Stock Indices have accelerated their sell-off into mid-October, the time frame that is geometrically-linked to decisive turning points over the past year (~90-degree cycles from mid-Oct. ’13 & mid-Apr. ’14 lows and mid-Jan. & mid-July ’14 highs).
As explained in the Sept. 2014 INSIIDE Track and the 40-Year Cycle – Stock-flation 1974–2014 Report, this mid-Oct. time frame not only has current significance (when a blow-off spike low is most likely) but is also expected to project future significance to mid-April 2015 – 180 degrees in the future…”
The Indices validated that expectation by plummeting into Oct. 15/16th and bottoming. Shortly after that, a related projection – for a corroborating drop into mid-January 2015 (~90 degrees after the mid-Oct. low and ~90 degrees before the mid-April cycle) was published.
“There is one important time frame/cycle to watch in January. A low at that time would act as both fulfillment and foreshadowing of other cycles. That time frame is in mid-January – arriving ~90 degrees from the mid-Oct. low and ~30 degrees from the mid-Dec. low (as well as ~270 degrees from the April 2014 low). A low in mid-January would reinforce the potential for a subsequent low in mid-April – ~90 degrees later.”
Again, the Indices perpetuated that ~90-degree cycle that recurs in mid-April (by dropping into mid-Jan. and setting a low). The reason these price targets are critical is due to that cycle. As speculated in October, those declines could be a harbinger of a similar – though increasingly more significant – decline into mid-April.
If that is the case, it could be similar to the mid-Oct. & mid-Jan. lows… and even the preceding mid-April 2014 low. In each case, the Indices were completing 4–6 week declines – leading into those cycle lows. The Nasdaq 100 dropped from March 3–5th into Apr. 15, 2014. It dropped from Sept. 3rd into Oct. 15/16, 2014. And it dropped from Nov. 28 into Jan. 15/16, 2015.
If it is going to do something similar – and perpetuate this 90/180-degree pattern – the NQ-100 should drop from late-Feb./early-March into April 15/16th. (A high in early-March would come 360 degrees from the March 3–5th, 2014 high & 180 degrees from the Sept. 3, 2014 high.)…
There is another intriguing (international) Index that could corroborate all of this as it has multi-week, multi-month & multi-year cycles peaking in late-Feb.–late-March… and is now attacking multi-year upside price targets. The March 2015 INSIIDE Track will elaborate.”
Stock Indices are very close to fulfilling multi-year extreme upside price targets – the last objective that needs to be met before a Major top becomes most likely. If they can reach 18,219/DJIA, 2118/ESH & 4400/NQH, the Indices will fulfill these targets and usher in the ideal time AND place (price level) for a Major top.
As discussed since last year, the ideal scenario is to see the first significant sell-off take place between early-March and mid-April 2015. So, a decisive top should take hold in the next 7–10 days!