August ’19 Stock Plunge VIII: Second Plunge Very Likely After Aug. 12/13; Daily 21 Low MACs = Resistance. Where to Next?
08/10/19 Weekly Re-Lay: “Stock Indices bottomed on Aug. 5, in sync with the daily trend patterns and the culmination of a 5-day decline in the NYSE, and rallied into Friday. Based on multiple indicators, the same NYSE Index (NYA) projected a rebound into Aug. 9 or 12, which is now reaching fruition.
Most indexes tested daily LHR levels, the first of two criteria expected from these rallies. The second is a test of, and reversal lower from, their descending daily 21 Low MACs. That is poised to take place on Aug. 12…
Stock Indices provided new levels of validation to the late-July – late-August outlook for a sharp sell-off. They generated a second set of neutral signals against their prevailing weekly uptrends. It would now take weekly closes below xx,xxx/DJIA, xxxx/ESU & xxxx/NQU to reverse those trends to down and confirm that multi-month peaks are in place…
At the same time, the daily trend patterns projected an Aug. 5 low followed by a multi-day bounce into Aug. 7/8. Once the Aug. 5 low was set, and the action of Aug. 6 unfolded, that short-term analysis was tweaked with multiple indicators increasing the likelihood for a rally into Aug. 9 or even Aug. 12. That has since unfolded.
Stock indexes have been led by the action of the NYSE Index (NYA), signaling the latest sell-off and then projecting a rally into Aug. 9/12 – fulfilling a 12 – 14 day high-high-high-high Cycle Progression. It reinforced that by retesting its low on Aug. 7, after which a 2 – 3 day bounce was expected. On Aug. 7, it triggered an outside-day/2 Close Reversal higher that also projected a rally into Aug. 9 or 12.
Many indexes have also attacked daily LHR levels on Aug. 7, portending likely 1 – 2 week highs for Aug. 9 or 12. If they can test their daily 21 Low MACs on Aug. 12… the stage would be set for a reversal lower and the onset of a new decline. Daily trend patterns identify Aug. 12/13 [reserved for subscribers]”
Stock markets increasing likelihood for second sharp sell-off after Aug. 12, 2019. Danger signs intensifying while technicals pinpoint time for panic selling! 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.