Stocks Rebound 50%; On Track for Second Plunge into Late-March ’20!
03/05/20 INSIIDE Track Intra-Month Update: “Stock Indexes (except for the weaker Transports) are holding well above their Feb. 28 lows after plunging into that date while fulfilling the ‘Perfect Storm’ of bearish cycles and indicators that converged on Feb. 7 – 14 and projected a higher-magnitude sell-off…
They plummeted into Feb. 28, fulfilling the 4-Shadow Signal, an Intra-Month Inverted V, the 40-Year Cycle, the 2-Year Cycle and the convergence of monthly & weekly cycles in late-Jan. – when the Transports and a large number of other stocks peaked and began a 1 – 2 month corrective phase.
In the strongest indexes, it took until mid-Feb. for the ‘roller-coaster’ to summit and begin its descent. The sell-off reinforced the ~12-week/~84-day Cycle Progression in other indexes (see Aug. & Sept. ’19 INSIIDE Tracks or multiple Weekly Re-Lays for a corresponding diagram) – that helped pinpoint the late-Aug. ’19 low. It was then forecast to invert and time an intermediate peak in mid-to-late-Nov. followed by a more significant one on Feb. 10 – 14. That is exactly when the DJIA peaked while simultaneously reinforcing its 40-Year Cycle…
On Feb. 12/13, 1980, the DJIA peaked and stocks dropped 8 – 10% into late-Feb. and initially bottomed.
On Feb. 12/13, 2020, the DJIA peaked and stocks dropped 8 – 10% (or more) into late-Feb. and initially bottomed.
For two years, equities have perpetuated the parallels to 1978 – 1982. It looks as though that continues to be the case.
The indexes were projected to spur a rally to begin the month of March, partly due to the fulfillment of daily cycle lows on Feb. 28, partly due to the fulfillment of so many of these late-Feb. downside objectives, and partly due to the DJIA dropping right to 6 – 12 month support and the primary objective for the 4-Shadow sell signal (the June ’19 low of 24,680; Feb. 28 low was 24,681/DJIA… about as precise as you can get).
There were other factors as well. That rally has taken hold, right on schedule. It has spurred a quick surge to monthly resistance levels with all three rallying sharply to begin the month but not yet turning their intra-month trends up… expect volatile congestion to continue within an underlying intermediate downtrend. The DJIA recovered 50% of its sell-off on March 2 -4…”
Stocks confirming late-Jan/early-Feb. Perfect Storm of sell signals – triggered on Feb. 7 – 14 – that project overall plunge into late-March ’20 – when a multi-month bottom is expected. They have rebounded 50%, into early-March, as they prepare for second wave of selling in coming weeks.
These damaging signals reinforce the 40-Year Cycle and 2-Year Cycle outlook for another plunge into late-March 2020 after a brief bounce – which has just unfolded with stocks surging right to monthly resistance (potential peak for March ’20).
Why is March ’20 Such a Vulnerable Time?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.