Transports Leading Stocks Lower in March.
03/07/15 Weekly Re-Lay: “Stock Indices fulfilled multiple upside objectives – including the Intermediate LLH (18,219/DJIA, 2118.0/ESH & 4400/NQH). In doing so, the DJIA fulfilled multi-year extreme upside targets, intra-year upside targets & intra-month upside targets – completing the final step necessary before a significant top could take hold.
All of this took place precisely as the Indices were approaching early-March – the time frame when the next intermediate top was most likely. As described since Sept., mid-April is a crucial cycle and expected to time (among other things) the culmination of a new 4–6 week decline.
That would be very similar to (but potentially more significant than) the declines seen in March/ April & Sept./Oct. 2014 as well as Dec./Jan. 2015… and would necessitate a preceding top to take hold in the opening days of March 2015 (related cycles pinpointed Feb. 25–March 6th).
That is exactly what has taken place and the first trigger signal occurred, no surprise, in the NYSE – with a daily trend reversal signal on March 4th (as did the June S+P futures). That was expected to prompt a quick bounce and then the onset of a more significant decline – beginning on March 6th/9th. The Indices initially obliged.
So far, the Indices have fulfilled their 180-degree & 360-degree cycles with uncanny precision. Just as they saw 40–45 day declines from March 3–5th into Apr. 15, 2014 & Sept. 3rd into Oct. 15/16, 2014, they have now set a high on March 2nd/3rd… also at the exact mid-point between the mid-Jan. low and the mid-April cycle.
[It is also worth noting that the DJ Transports remain below their late-Nov. peak while the DJ Composite remains below its late-Dec. peak… perpetuating the series of divergent highs that has been anticipated as a warning sign of a top. The Transports set their latest high on Feb. 25th – 90 degrees from their original peak.]
Stock Indices did give some quick selling, triggered by a daily trend sell signal in the NYSE & ESM. The DJIA has since mimicked that pattern while the NQM still needs at least two days to do the same. That would set the stage for a brief bounce and then a larger-degree decline.”
March 9–11th drop would set stage for brief bounce; March 20–24th holds historic significance!