DJTA, NFLX & AMZN Signal Major Lows & Trigger Buy Signals; Other Indexes to Follow…
03/21/20 Weekly Re-Lay: “A low in the coming week would fulfill both the 2-Year Cycle (March 23, ’18 low close in DJIA) and 40-Year Cycle parallels (precipitous drop from Feb. 12/13 into late-March). The DJTA attacked its 1 – 2 year downside target (~6500), portending an imminent bottom…
In Sept. 2018, the Transports completed a textbook 5-wave advance (from the 2009 low) and signaled the onset of a multi-year corrective phase. They quickly turned their monthly trend down and then set the Dec. ’18 low – what was/is likely the ‘A’ wave of a 1 – 2 year (or longer) ‘A-B-C’ correction.
The DJTA then rallied back to its monthly trend point and bumped up against that pivotal resistance from April ’19 into Jan. ’20. It never closed above it and never neutralized the monthly downtrend – reinforcing the perception that the Dec. ’18 low was only an initial low in a much larger decline.
The DJTA was projected to set a multi-month peak in Jan. ’20 (the convergence of 16-month, 8-month & 11 – 12 week cycle peaks) and then suffer a higher magnitude decline in Feb./March ’20. That quickly took hold after the Transports peaked in mid-Jan.
The primary downside objective – reiterated in recent months – was the Jan. 2016 low (the 4th wave of lesser degree support) near 6,500/DJTA. A drop to that level would also entail a 50% retracement of the 2009 – 2018 advance (and a spike below the monthly HLS).
On March 18, the DJTA spiked down to 6,481 – fulfilling that major downside objective… At the same time, leading stocks (NFLX, AMZN) triggered signs of developing lows. It might take a few days (or 1 – 2 weeks, in some cases) for other stocks to follow suit.
Stock indexes consolidated through much of the week, rebounding into March 19/20 before turning back down. Some have since spiked to new lows while others (NQM) held above their previous days’ and week’s low. March 23 is the 2-year anniversary of the 2018 DJIA low (close) and could time something similar [see current publications for ongoing analysis & new trading strategy updates]”
Stocks fulfilling Stock Panic Cycles (projected for early-2020, in March 2019) as well as 40-Year Cycle and 2-Year Cycle projecting plunge into March 23, 2020 – the precise time that index bottomed in 2018 AND 1980. Transports reach downside target as NFLX & AMZN trigger decisive buy signals. Major indexes also trigger buy signals for multi-month rallies.
Will DJIA Bottom on March 23… and Precisely Fulfill 40-year & 2-Year Cycles?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.