DJ Transports Corroborate Projected 2 – 4 Week Peak (Feb. 19 – 22) and Correction into March 4 – 8… Primary Indexes Remain Positive.
DJ Transports Corroborate Projected 2 – 4 Week Peak (Feb. 19 – 22) and Correction into March 4 – 8… Primary Indexes Remain Positive.
02/23/19 Weekly Re-Lay: “Stock Indices remain in intermediate uptrends, with all three indexes now fulfilling 1 – 2 month upside targets as the NQ-100 just attacked 7104 – 7173/NQH. That remains a decisive level from which a more significant pullback is more likely.
Since reaching 7095/NQH on Feb. 15, the NQ-100 has traded sideways with a few brief spikes above 7100/NQH. That stagnation could be corroborating weekly cycles in bellwether stocks and in the DJ Transports. That is based on a recurring ~12-week cycle in the DJTA – a cycle that has been constant throughout the past year.
The latest phase of an 11 – 12 week high-high-high-(high) Cycle Progression is Feb. 19 – March 1 and should produce another ~2 – 4 week peak. The 12th week of that ~12-week cycle – Feb. 25 – March 1 – also aligns with a 180-degree/6-month move from the late-Aug. ’18 highs in the Nasdaq and in related stocks.
With all three indexes now fulfilling their 1 – 2 month upside targets, the potential for a 1 – 2 week correction increases. However, that would not be signaled until daily closes below 25,761/DJIA, 2762/ ESH & 7005/NQH. Until then, it is just potential as the 1 – 2 month uptrends remain intact…
There is still a chance for an initial low on Feb. 26 – 28 if the markets begin a decline on Monday (since corrections are usually quicker and sharper than the prevailing trend). The focus, however, remains on the prevailing uptrends.”
Stocks remain positive but the DJTA (Transports) – which often leads other indexes by days or weeks – is corroborating analysis for a Feb. 19 – 22 peak followed by a 2 – 4 week correction. That should last into at least March 4 – 8. Other indexes remain in uptrends and have not signaled anything similar yet.
This remains in the broader context of equities projected to set 3 – 6 month or 6 – 12 month lows in late-2018 and then see a strong, multi-month rally into May 2019 (weekly cycles pinpoint late-April – early-May ‘19 as ideal period for a peak) – reinforcing 40-Year Cycle parallels.
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.