Why the 2-Year Cycle (& NQ Daily Cycles) Project Add’l October ‘18 Plunges in Stocks.
Why the 2-Year Cycle (& NQ Daily Cycles) Project Add’l October ‘18 Plunges in Stocks.
10/18/18 INSIIDE Track Stock Index Update: “Stock Indices reversed lower after the DJIA & NQZ surged to preliminary resistance leading into Oct. 16/17 – completing a sharp rebound from Oct. 11 and setting a short-term peak in line with shorter-term daily cycles.
This peak perpetuated a 15 – 17 day low (7/30) – low (8/15) – high (8/30) – high (9/14) – high (10/01) – high (Oct. 16 – 18) Cycle Progression in the Nasdaq 100.
The indexes have entered a 1 – 2 week period during which they should reveal if they are going to extend the recent declines and take this correction to a higher level or develop a wider range of congestion. The Nasdaq 100 needs a weekly close below 6907/NQZ to turn the weekly trend down and generate a sign of a 3 – 6 month (instead of just a 1 – 2 month) peak. Until that occurs, the 3 – 6 month trend has turned neutral but not down.
On a short-term basis, the NQZ just plunged to its daily HLS (extreme downside target) as all three indexes dropped back toward their early-week lows (but did not yet close below them). It would take daily closes below 25,243/DJIA, 2745/ESZ & 7060/NQZ to violate those early-week lows and to signal a new breakdown.” TRADING INVOLVES SUBSTANTIAL RISK!
Equities fulfilled multiple phases of the 2-Year Cycle – plunging 8 – 10% during the first two weeks of October and then rebounding to short-term resistance followed by reversals back down. This is increasing the potential for another 1 – 2 week sell-off – ultimately leading into important cycle lows in late-October that have been in focus for several months.
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.