August ’19 Projected Stock Plunge IV: July 29 Sell Signal Confirmed; Aug. 5/6 Low Likely… Quick Bounce Should Usher in More Trouble!

08/03/19 Weekly Re-Lay – “Stock Indices validated the latest sell signal in the NYSE Index that projected another 3 – 5 day sell-off beginning on July 29.  As stated last week, since equities were entering Aug. ’19 – the month projected as the most precarious in 2019 for over two years – that 3 – 5 day sell-off could escalate into something larger.  The indexes turned their daily trends down, corroborating this potential and signaling that another (1 – 2 week) drop is likely after an intervening bounce…

Stock Indices validated daily cycle highs (July 24 – 26) and the daily trend sell signal in the NYA (projecting a new 3 – 5 day sell-off beginning on July 29) – dropping right to the weekly HLS levels while turning the daily trends down.

That is the textbook sequence of events for a developing, intermediate peak.  It confirms what has been unfolding in other indexes and what was presaged by the July 11/12 sell signal in NFLX.  In addition, the July 31 (initial) sell-off was enough to prevent the DJIA, the NQU, the DJTA, the Russell 2000, and the NYA from turning their monthly trends up.  That increases the likelihood for a sharp sell-off…

Stock indexes peaked on July 24 – 26, fulfilling daily cycles & trend patterns, and reversed lower on July 29 – beginning what was expected to be a sharper 3 – 5 day sell-off.  On Aug. 2, they fulfilled what was necessary to confirm a 2 – 4 week peak – reversing their daily trends down.  That pattern usually times (within 1 – 2 trading days) an initial low and the onset of a reactive multi-day bounce.

As for shorter-term cycle highs, the S+P has been the most consistent in recent weeks – setting peaks at 10 – 12 (calendar) day intervals.  That projects a rebound high on Aug. 6/7, corroborating the daily trend pattern potential.  Corroborating that, the NQ-100 has a 14 – 15 day low-low-high-(high) Cycle Progression peaking on Aug. 7/8.  The most bearish scenario would be a rebound that peaks near the descending daily 21 Low MACs…[reserved for subscribers]

Stock markets increasing likelihood for sharp sell-offs in Aug. 2019.  40-Year Cycle AND 4-Year Cycle project Aug. ’15-style sell-off.  What does this reveal about Sept. – Dec. 2019??  And 2020???

Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.