August ’19 Stock Plunge Culminating II? Bonds Signal Culmination of ‘August Anxiety’; Peak in Bonds & Low in Stocks Likely in Coming Days!
08/24/19 Weekly Re-Lay: “Stock Indices completed their latest rebounds on Aug. 21/22, triggering a new round of short-term sell signals after twice neutralizing their daily downtrends (while fulfilling short-term daily cycle highs and the daily LHR indicator). That projected a new 3 – 5 trading-day decline… Bonds & Notes provided additional (alarming) inverted yield curve signals, adding to the anxiety plaguing equity markets. As is so often the case, it has taken multiple negative factors to have a more substantial and sustained impact on stock indexes – which has in turn supported Bonds & Notes on a safe-haven/flight-to-quality mindset.
If a recurring annual cycle, combined with weekly and daily cycles, is accurate – it could be signaling the culmination of this ‘August Anxiety’…
The next 2 – 3 weeks represents the most significant annual period of the past 5 years – portending an intermediate peak for late-Aug./ early-Sept. ’19. A peak at that time would perpetuate a ~360-degree ‘high-high-high’ cycle that previously timed the late-Aug. ’18 high & reversal lower.
It would also arrive 2-years from the early-Sept. ’17 peak & reversal lower, 3 years from early-Sept. ’16 – when Bonds completed a series of descending highs and then plunged – and 4 years from the late-Aug. ’15 peak and reversal lower.
From a weekly cycle perspective, Bonds & Notes have rallied since bottoming in mid-July, in sync with a 13 – 14 week low-low-low Cycle Progression. A cycle like that should spur a rally for (at least) half of the ensuing cycle – or roughly 6.5 – 7 weeks – which would create a peak in the next 1 – 2 weeks. The coming week is also the third week since Bonds & Notes surged to attack their weekly LHR levels – a sign of an impending top.”
Bonds corroborating outlook in equities as ‘August Anxiety’ is culminating. Weekly & annual cycles in Bonds concur with stock markets latest 3 – 5 day sell signals (Aug. 21) ushering in most likely time for intermediate reversals (up in stocks/down in Bonds). ~12-Week Cycle Progression in stock indexes focused on Aug. 26 – 28 for next multi-week low. When is rebound most likely? How far could stocks rally?? When is next intermediate peak expected???
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.