Stocks & Mid-June ’24 Cycle Lows; DJUA Could Surge from Critical Support.
06/12/24 – “Stock indexes are widening their divergence as the S+P 500 & NQ-100 remain strong on the backs of key tech & AI stocks while the DJIA, DJTA, Russell 2000 and S+P Midcap 400 reflect an alternate reality.
As they near the culmination of the current intermediate cycle – that bottoms in the second half of June ’24 – it is important to keep the 90/10 Rule of Cycles in mind… the culmination of this latest intermediate cycle…
Meanwhile, the DJUA – the index more closely linked to movement of interest rates and/or the Bond market (both bottomed in October ’23 after declining from March/April 2022) – is in a similar setup on a daily basis but a much different one on a weekly basis.
As a result, both are poised to see 1 – 2 week sell-offs but the DJUA could be pulling back to rising support near 880/DJUA…
If that occurs on June 14th, it would increase the potential (there’s that word again) for a blow-off spike low in the subsequent 1 – 2 weeks.
It is intriguing that the DJIA was the index that led the late-2022 bottom and initial rally while fulfilling the uncanny Mid-Term Election Cycle of ~20% Gains.
Is it ‘telling’ the DJIA is entering a dangerous ~2-week period that culminates with the first of two US Presidential debates (June 27th)?
At the same time… the S+P 500 & Nasdaq 100 have rallied into mid-week and (almost) into mid-month, testing weekly resistance and monthly resistance – pivotal levels on intra-week & intra-month bases.
They would not show any signs of topping, however, until daily closes below Monday’s lows.
1 – 3 month & 3 – 6 month traders could have exited a portion of long positions in March, anticipating a sell-off that could stretch into/past mid-June 2024.” TRADING INVOLVES SUBSTANTIAL RISK
Stock Indexes are moving toward decisive peaks projected for July & October 2024, in sync with overall 17-Year Cycle analysis and parallels. The NQ-100 is reinforcing expectations for similarities to 2007, in line with the 17-Year Cycle of Stock Market Peaks (successive highs in 1Q ‘24, July ‘24, and then October ’24 projected). Several timing indicators project a critical top for July 2024!
The DJTA & Russell 2000 maintain the likelihood for additional lows in ~mid-June – the time when a multi-month bottom is most likely and when this latest corrective period should culminate… leading to new rallies into July ‘24. The DJTA is focused on June 17 – 21st for a bottom. The Russell 2000 concurs – with a decisive low expected on ~June 18/20th. The DJIA and other indexes concur.
How Does Current Sell-off Set Stage for Larger 3Q ’24 Decline?
Why Does 17-Year Cycle of Stock Peaks Forecast Pivotal Highs for July & October 2024?
Will This Corroborate the Projected 2025/26 Recession (& Stagflation) Cycle?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.