Stocks Focus on January 6th for Next Downturn; Reinforce Outlook for Bearish 1Q ’25!
01/04/25 – “Stock indexes remain in consolidation after their initial plunge into Dec 19th that fulfilled the first phase of analysis following the Nov 25th cycle peaks (IDX, RUT, DJTA)… Stock Indices have consolidated after rebounding into Dec 26/27th and fulfilling short-term expectations for a bounce from Dec 19/20th cycle lows. The Dec 19/20 lows fulfilled analysis for a sharp decline from ~Nov 25th into those dates… followed by a bounce & second decline.
On Dec 19th, the S+P Midcap 400 – the focus of this 4Q ‘24 analysis – plunged right to its range-trading support and 3 – 4 week downside target at 3100 – 3125/IDX, where a low was most likely. That came after it peaked precisely at its upside wave & range-trading target (~3400/IDX).
Its initial low – likely just a stopping point on the way to lower levels – also fulfilled a type of ‘4th wave of lesser degree’ support where the low before the previous (culminating) advance had taken hold in late-October. Ideally, it will spike a little higher (~3200/IDX) before declining again.
The DJTA also peaked right at its upside range target (~17,600) and plunged back to its early-October low and range-trading support (~15,600) while turning its weekly trend down. It also closed below its weekly 21 Low MAC… an average that could turn down in the coming week(s).
The DJTA could be revealing some additional clues regarding 1Q ’25… this correction could stretch into March/April ‘25 – the convergence of multiple cycles & Cycle Progressions including an 18/19-month low-low-(??) Cycle Progression, a 2-Year Cycle (DJIA peaked in late-Nov ’22 and sold off into March ’23) and an annual cycle that timed intra-year lows in 2020, 2023 & 2024.
Stock Indices are consolidating but set up to create intra-month highs on January 6/7th, ideally without turning their new intra-month trends up.” TRADING INVOLVES SUBSTANTIAL RISK
Stock Indexes have rebounded after plunging into December 19th – the initial fulfillment of sell signals triggered in late-Nov/early-Dec ’24 after the S+P Midcap, DJTA & Russell 2000 peaked on November 25th, in precise lockstep with repeatedly-published cycles and right at major upside targets. Those indexes likely set 3 – 6 month peaks and are projected to drop sharply in 1Q 2025.
The 17-Year Cycle remains focused on 4Q 2024 as the most likely time for a major peak in equities. In line with that, the DJIA is already revealing parallels to late-2007/early-2008. Cycles and timing indicators are already identifying the next likely time frames when a second sharp sell-off is likely… in early-2025 (see publications for details).
How Does December 19th Low Corroborate January 2025 Outlook?
How Do November 25th Highs – in Leading (Weaker) Indexes – Corroborate Outlook?
How Do 2025 Cycles of Attacks and Instability Reinforce This Potential?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.