DJIA Projects Surge to 24,680 – 25,000; NQ-100 Holds Support as Major Bottom Forms. Buy Signals Triggered on March 16 – 18!
03/25/20 Weekly Re-Lay Alert: “Stock Indices continue to show signs of bottoming… after repeatedly attacking their monthly HLS levels – the extreme downside targets for March ’20. Daily, weekly & monthly HLS indicators identified March 16 – 18 as the ideal time (dates with the greatest synergy of these indicators) for a multi-week low, which is when a lot of key stocks bottomed.
March 23 was the 2-year anniversary of the 2018 DJIA low (close) and could have timed a final spike low in the primary indexes with the NQ-100 remaining the most resilient.
This week (March 23 – 27) is also the 40-year anniversary of the late-March 1980 low – the focus and objective for the 40-Year Cycle signal from Feb. 12/13.
The low on March 23 also fulfilled a 31 – 34 day high-high-high-(low) Cycle Progression in the leading DJ Transportation Average and projected a sharp rebound to follow. This is reinforced by the Transports retesting their 1 – 2 year downside target (triggered in Oct. ’18) at ~6,500/DJTA.
From a cycle perspective, the indexes have now fulfilled the timing aspect of the 2-Year Cycle & 40-Year Cycle patterns. Both of these cycles projected sharp sell-offs from mid-Feb. ’20 (40YC projected Feb. 12/13 peak while 2YC focused on Feb. 13 – 17) into late-March (March 23 – 27) ’20.
(For another intriguing example of the 2-Year Cycle, refer to Natural Gas analysis near the end of this Alert.)
Leading the way to the upside are tech stocks with the Nasdaq 100 continuing to hold the levels of its March 13/16 lows – reinforcing that a multi-week bottom is forming. (The NQ lows of the past week have continued to hold the June ’19 lows as well – the point at which the most recent ~8-month advance began.)
Many individual stocks bottomed last week – in sync with corresponding daily cycles – and already confirmed 1 – 2 week (or longer) lows, with proxies like AMZN & NFLX confirming 1 – 2 week reversals higher on March 18/19 and validating the March 17 – 18 buy signal. At least in the case of AMZN, that projects a likely rally into [reserved for subscribers]…
As described last week, the indexes could see sharp rallies… with key upside targets at 24,680 – 25,000/DJIA, 2850 – 2910/ESM & 8300 – 8500/NQM…
So, while that does not guarantee an imminent test, they do provide a critical target if/when that acceleration takes hold… as is now a higher probability than at any other time over the past 6 weeks…
March 26 is Decision Day!
As described last week (March 18 Alert), the convergence of all these factors provided the first time since the peak when enough cycles and indicators were arguing for a sizeable bounce and were worth heeding – justifying taking an initial stab at re-establishing some long positions in the market (but too risky for futures).
As a result, equity investors could have re-entered the market on March 19 and can now risk [see current publications for ongoing analysis & new trading strategy updates]…”
Stocks reinforcing March 16 – 18 buy signals as tech stocks project major rallies! Stocks fulfill Stock Panic Cycles (projected for early-2020, in March 2019) as well as 40-Year Cycle and 2-Year Cycleprojecting plunge into March 23 – 27, 2020 – the precise time the DJIA bottomed in 2018 AND 1980. Transports reach downside target (6,500) as NFLX & AMZN trigger decisive buy signals. Major indexes trigger buy signals for powerful rallies.
What if DJIA Reaches 25,000? What Then??
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.