Stock Market Sell-off into Late-March ’20 Likely; 40-Year Cycle & 2-Year Cycle Concur!

02/28/20 INSIIDE Track Stock Index Update: “Stock Indexes are fulfilling the ‘Perfect Storm’ of bearish cycles and indicators that converged on Feb. 7 – 14 and projected a higher-magnitude sell-off… the Transports and a large number of other stocks peaked and began a 1 – 2 month corrective phase.

On Feb. 12/13, 1980, the DJIA peaked and stocks dropped 8 – 10% into late-Feb. (as part of an overall ~20% decline into late-March ‘80).

On Feb. 12/13, 2020, the DJIA peaked and stocks dropped 8 – 10% (or more) into late-Feb. – a near perfect repeat of the 40-Year Cycle.  There is a real chance that this sell-off could extend after some intervening – and volatile – consolidation.

It is also fascinating how the FAANG stocks produced a remarkably-similar setup in mid-Feb. ’20 as they did in late-Sept. ’18 – two periods that both had bearish 2-Year Cycle setups as well.  In both cases, those few stocks were the last ones surging to new highs even as hundreds of other stocks were already waving yellow flags and showing signs of reversing lower.”

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Stocks plunging in lockstep with 2-Year Cycle & over-arching 40-Year Cycles as well as weekly Cycle Progression in Transports & Industrials & ominous 4-Shadow Signal triggered in late-Jan/early-Feb.  Perfect Storm of sell signals – triggered on Feb. 7 – 14 – signals ‘significant top’, ‘start of a much larger process’, ‘majority of sell-off to follow’, significantly negative impact on overall market’, leading to ‘intra-year trends down, which would have a longer-reaching impact on the overall equity market’.

These damaging signals reinforce the 40-Year Cycle and 2-Year Cycle outlook for another plunge into late-March 2020.    

What Would March ’20 Stock Market Plunge Mean for 2020 – 2022?

Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.