Stocks Confirming Peak…

Stocks Confirming Peak…
90/10 Rule in Effect;
Projects February Sharp Sell-off.

02/03/18 Weekly Re-Lay: Stock Indices reversed lower – validating the culmination of 5-month & 10-month low-low-low-low-(high) Cycle Progressions that projected a multi-month peak in mid-Jan. – mid-Feb. 2018.  They have produced the first signs of a February reversal lower that should ultimately lead to an initial low in March 2018

Stock Indices are confirming signs of a peak with the DJIA & ESH turning their daily trends down after fulfilling 5-month AND 10-month low-low-low-low-(high) Cycle Progressions that projected a multi-month peak between mid-Jan. – mid-Feb. 2018

Yet again, this comes on the heels of the Transports peaking first (Jan. 16th) and turning their daily trends down more than a week before the other indexes.  The DJTA elevated its decline by neutralizing the weekly uptrend on Friday.

The DJIA, ESH & NQH also neutralized their weekly uptrends with the ESH & NQH creating outside-week/2 Close Reversals lower after spiking to new highs on Jan. 29 – Feb. 2.

These reversals came after the primary indexes surged to their monthly LHRs in January – attaining intra-month upside extreme targets after reaching larger-degree yearly extreme upside targets (LHRs) in 2017.

With a pair of monthly cycles also completing the parabolic phases of their respective Cycle Progressions, these price extremes corroborate that equities have stretched to extremes on multiple levels and were/are poised for initial reversals lower in February (leading into a projected monthly cycle low in March 2018).

It is important to reiterate that several key global indices also signaled initial reversals lower, beginning on Jan. 23 & 24.  These include the Shanghai Composite, Nikkei, Euro STOXX 50, CAC-40 and the DAX.

On a larger-degree basis, the European Indexes remain the most vulnerable as they barely spiked above their Nov. peaks.  The STOXX could not retest its May 2017 peak, which was below its Nov. 2015 high, which was below its July & April 2015 peaks.  The outlook remains that this index could see a year-long drop into late-2018.

Stock Indices spiked to new highs & then reversed lower this past week, providing the first signs of an intermediate peak.

Stock Indices fulfilled their 5 & 10-Month Cycle Progressions – setting peaks and then generating initial sell signals in mid-to-late-Jan 2018.  Many peaked on or within days of the 5-month anniversary of the Aug. 18/21 low – the onset of this 5-month surge.  Multiple indicators are projecting an initial (sharp) sell-off from late-Jan. into mid-Feb…. with a second drop into March 2018 possible.

See Weekly Re-Lay & INSIIDE Track for additional details.