Canary in Coal Mine II: Russell 2000 Validating Potential for Imminent Sell-off; Equities Enter Danger Period When Initial Sell-off is Very Likely!
Canary in Coal Mine II: Russell 2000 Validating Potential for Imminent Sell-off; Equities Enter Danger Period When Initial Sell-off is Very Likely!
05/01/19 Weekly Re-Lay Alert – May 2019 Cycles Have Arrived – “Stock Indices have initially fulfilled the 3 – 6 month outlook for an overall advance from late-Dec. into May 2019 – when a multi-month peak is most likely. Most indexes rallied to new highs on the first day of May, and then pulled back. The daily & intra-month trends would need to turn down, however, to signal that a multi-week top is in place.
The intra-month trends cannot turn down until May 6, at the earliest. In the interim, the daily trends are showing initial signs of short-term weakness. The Transports turned their daily trend down on April 29 while the Nasdaq 100 has neutralized its daily uptrend multiple times. It would take a daily close below 7740/NQM to turn that trend down.
The DJIA needs a daily close below 26,310 to show initial weakness while the S+P 500 needs a daily close below 2889.0/ESM.
The real intriguing index, and still the potential canary in the coal mine, is the Russell 2000. It retested its Feb. high (but has not closed above that) and immediately reversed lower. It needs to close below xxxx.xx/QRM on May 3 if it is to maintain a more negative weekly trend pattern.
To reiterate, the equity markets are entering a pivotal time that has been in focus since last Sept. It is the ideal time for a multi-month peak and potentially the high of 2019.”
Russell 2000 signaling danger as Transports trigger weekly sell signal. Minimum 2 – 3 week decline projected. Stocks have entered a dangerous period when a multi-month peak has been forecast and have fulfilled late-2018 analysis (~3.25-Year Cycle) for a rally into April/May 2019 and back up toward their Sept./Oct. ’18 highs. Daily & weekly cycles pinpoint April 22 – May 3 as prime time for peak. May 2019 begins a precarious period for equity (and energy) markets! Watch for initial sell-off.
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.