Oil & Stock Plunges Validating Energy/Equity Cycles & Connection
Oil & Stock Plunges Validating Energy/Equity Cycles & Connection.
10/20/18 Weekly Re-Lay: “Stock Indices rebounded sharply – from daily cycle lows on Oct. 11 to daily cycle highs on Oct. 17 – after plunging during the first two weeks of October. That fulfilled a consistent 2-Year Cycle that projected 8 – 10% declines during the first half of October. All three primary indexes are now in a position to turn the weekly trends down – and generate a more convincing sign of a 3 – 6 month peak…
Stock Indices closed mixed on the week with the Nasdaq 100 still showing the most weakness. In the interim, equities fulfilled analysis for a sharp rebound from daily cycle lows on Oct. 11 (at which time many indexes fulfilled the 2-Year Cycle outlook for a ~10% plunge in the first two weeks of October) into daily cycle highs on Oct. 16/17.
By dropping 8 – 10% during the first two weeks of October, equities have fulfilled the primary downside objective for this time frame, paralleling what was previously seen in 2008, 2012, 2014 & 2016 – the recurrence of an uncanny 2-Year Cycle. However, as previously demonstrated, some of those phases saw additional selling into late-Oct.
All three indexes have now neutralized their weekly uptrends at least two times. They need weekly closes below 24,899/DJIA, 2745/ESZ & 6907/NQZ to turn those weekly trends down (and signal that the Sept./Oct. highs are of one degree higher than the Jan. ’18 peaks). If that occurs on Oct. 26, it would usher in the time for an initial low while also projecting a subsequent (future) drop…
Stock indices bounced sharply to begin the week after fulfilling early-Oct. downside price targets and multi-month support levels. That allowed the NQZ to rally right to weekly resistance and its descending daily 21 Low MAC while perpetuating a 15 – 17 day low (7/30) – low (8/15) – high (8/30) – high (9/14) – high (10/01) – high (Oct. 17) Cycle Progression. A daily close below 7031/NQZ would confirm…
Crude Oil, Unleaded Gas & Heating Oil dropped sharply after Crude re-attacked and held the 2018 primary upside target (that stretched up to 77.30/CL).
In doing so, Crude stretched its 2018 advance a couple weeks longer than expected (after failing to turn its daily trend down in early-Sept. while spiking down to its weekly HLS) – perpetuating a 32 – 34 week low-low-low-(high) Cycle Progression…
Natural Gas could not turn its daily trend down, increasing the potential for another rally to test the monthly LHR just above 3.4700/NGZ.”
Energy & Equity markets intensify sell-offs as they validate multi-month cycle highs with Crude projecting a significant peak in/around Sept. 2018 (coinciding with Middle East cycles projected to also shift in late-Sept. ’18). Natural Gas remains bullish and is projected to see a larger overall advance into mid-to-late-Dec. ’18.
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.