How a 2-Year Cycle October Plunge in Stocks Could Confirm a Major Wave Peak.
How a 2-Year Cycle October Plunge in Stocks Could Confirm a Major Wave Peak.
10/04/18 INSIIDE Track Intra-Month Update: “Stock Indices are reinforcing a recurring 2-Year Cycle that projected a significant correction surrounding the first two weeks of October.
In 2012, 2014 & 2016 (as well as in 2008), equity markets peaked in early-to-mid-Sept. and then corrected for 4 – 6 weeks. In each case, those declines overlapped the first 3 weeks of October. (They also experienced related 3-week sell-offs from mid-Sept. into early-Oct. – in 2011 and 2013.)
This 2-Year Cycle has consistently timed sharp corrections that usually see their accelerated phase at some point in Oct. The potential for an Oct. sell-off was corroborated in late-Sept. by the Russell 2000 (turning its weekly trend down), and the NYA & DJTA (daily indicators).
And, since the markets have entered the final 10% of their expected low – low cycle (late-March – late-Oct. 2018), it is the time that is most prone to an accelerated decline.
That was validated by the Nasdaq 100 generating a 1 – 4 week sell signal earlier this week (up to 7690/NQZ; see Weekly Re-Lay) and the structure of its daily 21 MARC and daily trend pattern…
If that index can close below 7420/NQZ in the next couple days, it could see a spike down to ~7150/NQZ in the short-term. The next couple days should help hone short-term downside objectives.”
The 2-Year Cycle is projecting a sharp (10 – 15%) sell-off in October that is expected to usher in a 1 – 3 month low in late-October. A second and more convincing decline should take hold after a (projected) lower high is set in late-Nov./early-Dec. – ultimately violating the late-Oct. low.
All three indexes have now completed 5th of 5th wave advances, with the DJIA finally accomplishing that in late-Sept. It remains on track for a projected drop to ~22,100 in 2018.
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.