Why the 2-Year Cycle (& Weekly Trends) Projected Equity Plunge into Oct. 26, ‘18.
Why the 2-Year Cycle (& Weekly Trends) Projected Equity Plunge into Oct. 26, ‘18.
10/25/18 INSIIDE Track Stock Index Update: “Stock Indices traded in inside days – with their lows higher than yesterday’s lows and their highs lower than yesterday’s highs – as the DJIA recouped about 2/3 of yesterday’s losses with the S+P 500 & Nasdaq 100 only recouping about 1/3 of those losses.
This leaves open the potential for additional downside tomorrow (and possibly stretching into the early part of next week, depending on tomorrow’s close).
The most important factor will be the weekly trends. If they can turn down, in at least some of the indexes, those weekly trends would powerfully corroborate the weekly 21 MACs that turned down this week… and the dual closes below those weekly 21 MACs the past two weeks.
All three indices have neutralized their weekly uptrends at least two times. They need weekly closes below 24,899/DJIA, 2745/ESZ & 6907/NQZ to turn those weekly trends down. The Oct. 26 close is the first chance for these weekly trends to reverse down.
If the weekly trends can turn down, that would increase the potential for equities to eventually make it down to their early-year lows – the 4th wave of lesser degree support (and target) on a 2 – 3 year basis. That could still take a couple months with intervening price action clarifying that.
In the interim, the weekly trend reversal – if it occurs – would usher in the time for an initial multi-week low and subsequent bounce (since a weekly trend reversal is a confirming/lagging indicator that often coincides with the extreme of a first wave decline). That would then set the stage for another decline after that intervening rebound,” TRADING INVOLVES SUBSTANTIAL RISK!
Equities are nearing the completion of the projected 2-Year Cycle (October 2018) plunge and are increasing the likelihood for a decisive low on Oct. 26 or Oct. 29 (watch extreme downside targets at 23,913/DJIA, 2590/ESZ & 6650/NQZ). The weekly trend pattern is corroborating that and ushering in the potential for an important low after the Oct. 26 weekly close.
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.