Stocks Set For Low on ~May 4 & Consolidation into Mid-Month; 40-Year Cycle Remains Bullish (Since March 23)!
05/02/20 Weekly Re-Lay: “Stock Indices are a ‘tale of two realities’. For days, it looks like the best of times with some stocks (and indexes) rallying to new rebound highs. Soon after, it looks like the worst of times, with other stocks and indexes dropping to new intra-year and multi-year lows. The biggest takeaway from this is that it is NOT a ‘one size fits all’ approach.
That was reinforced by how the recent topping phase unfolded. It began with an expected corrective phase from April 9 into April 23 followed by another rally. That phase played out vastly different in diverse stocks/indices.
Two factors were/are more consistent in all the indexes. One was/is the weekly trend patterns and the other is the expectations for a quick, sharp drop in late-April/early-May – similar to the ones seen in late-Sept./early-Oct., late-Nov./early-Dec., late-Dec./early-Jan. & late-Jan./early-Feb.
The weekly trend indicator finally set the stage for a more significant peak after generating multiple neutral signals and then spiking higher this past week – the same time the DJIA & DJTA reached decisive upside targets and critical resistance. That created the ideal time for a 2 – 4 week peak.
Multiple timing indicators peaked on April 29 (.618 rebound in time for DJTA, NYA & Russell 2K, fulfillment of upside target in DJIA, daily cycle in Russell 2K, weekly trend indicator, etc.) and were projected to spur a quick, sharp sell-off into May 4/5…
And that will likely usher in another phase of contrasting extremes based on the daily trend patterns. Following that low, some stocks or indexes could rally back to their highs while others will likely rebound and then subsequently drop to new lows (leading into May 15 – 22).”
Stocks poised for daily low in early-May followed by brief bounce and subsequent low (higher in some stocks, lower in others) around mid-May. Stocks steadily confirming 40-Year Cycle and 2-Year Cycles that projected plunges into March 23 – 27, 2020 – the precise time the DJIA bottomed in 2018 AND 1980.
What Does 40-Year Cycle Portend for 2Q/3Q ‘20?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.