Why the 2-Year Cycle & New Indicator Reversals Project Another October ‘18 Plunge in Stocks.
Why the 2-Year Cycle & New Indicator Reversals Project Another October ‘18 Plunge in Stocks.
10/13/18 Weekly Re-Lay: “Stock Indices plunged during the first two weeks of October, perfectly fulfilling a consistent 2-Year Cycle that projected 8 – 10% declines during this period. The Nasdaq 100 spiked down to several key levels while initially turning some key indicators down. It would take a weekly close below 6907/NQZ, however, to turn the weekly trend down and generate a more convincing sign of a 3 – 6 month peak…
Wk Resistance: 2850.0 – 2862.0/ESZ 25,888 – 26,159/DJIA 7347.0 – 7446.0/NQZ
Stock Indices plunged after all three triggered outside-week/2 Close Reversal sell signals on Oct. 5 – projecting acceleration to the downside this past week. That increased the likelihood for a sharp drop in the first two weeks of October – similar to to early-2018 and several previous 2 – 4 week declines.
The Nasdaq 100 plunged to critical support and extreme downside targets, including its weekly HLS at 7008/NQZ. To provide a more significant reversal signal, the Nasdaq 100 needed to drop below its weekly 21 Low MARC and turn its weekly 21 Low MAC down. That level was at 6917/NQZ.
It dropped to 6907/NQZ, turning that channel down.
Another larger-magnitude peak would be signaled if/when the current decline exceeded the magnitude of the previous declines (Jan/Feb & Mar. ’18). The March ’18 drop saw that index declining from 7216 to 6398/NQZ – a total drop of 818 points. With the latest peak coming at 7728/NQZ, the NQ-100 needed to drop 819 points to trigger a decisive 4-Shadow Signal. That meant it needed to make it down to 6909/NQZ.
It plunged to 6907/NQZ!
At the same time, the DJIA attacked weekly 21 High MARC support (24,994) and 2 – 3 month support at 24,965. The S+P approached weekly 21 MARC support and intra-year trend support coming into play around 2700/ESZ
By dropping 8 – 10% during the first two weeks of October, equities have fulfilled the primary downside objective for this time frame, paralleling what was previously seen in 2008, 2012, 2014 & 2016 – the recurrence of an uncanny 2-Year Cycle…
Stock indices plunged to downside price targets and multi-month support levels as they fulfilled early-Oct. expectations. The daily trends should clarify if/when another sell-off is possible. Daily cycles pinpoint [reserved for subscribers].
1 – 4 week traders could have been holding short positions in Dec. mini-Nasdaq 100 futures from an avg. of 7650 and exited at an avg. of 7101 w/avg. gains of about $11,000/contract.… [reserved for subscribers].” TRADING INVOLVES SUBSTANTIAL RISK!
Equities have fulfilled the first phase of the 2-Year Cycle – plunging 8 – 10% during the first two weeks of October. They culminated that sell-off by turning decisive indicators down – increasing the potential for another 1 – 2 week sell-off after an intervening 2 – 3 day rebound (projected to take hold on Oct. 12). All of this should lead into important cycle lows in late-October.
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.