S+P 500 & Nasdaq 100 Portend Initial Sell-off into Early-August w/2 – 3 Week Sell Signals; DJIA Corroborates Projected Mid-July – Late-Aug. ’19 Plunge.
07/20/19 INSIIDE Track Intra-month Update – Stock Indices rallied into mid-month, peaking on July 15 and reversing lower. That fulfilled intra-month uptrends and related daily & weekly cycles, ushering in a new correction that had been presaged by decisive signals in multiple ‘proxy stocks’ the week before.
The Nasdaq 100 tested and held monthly resistance, while rallying into mid-month, the textbook scenario for an intra-month uptrend and its culmination. This came just days after NFLX provided a convincing sell signal on July 11 (near ~379.5) after perpetuating a 9-week/~2-month low-high-high-(high) Cycle Progression.
Once again, NFLX was acting as the canary in the coal mine – signaling the onset of a precarious period between mid-July and late-Aug. – while providing its own signal for a new decline. It reinforced that sell signal on July 15, powerfully validated it with the price action of July 18, and then elevated the sell signal on the July 19 weekly close.
At the same time, the ESU & NQU contracts generated weekly 2 Close Reversal sell signals, reinforcing these potential peaks. In the case of the S+P, that is likely to spur a quick drop to ~2920.0/ESU – where the latest two weekly HLS levels converge with the ascending weekly 21 High MAC…
Both the Transports and Russell 2000 continue to trace out weekly 21 MAC action that is indicative of a ‘b’ wave peak and start of ‘c’ wave decline.
Weekly & monthly index cycles project a multi-month low in late-Aug. (possibly Sept. ’19 in some indexes) with the majority of selling expected in the weeks immediately preceding that cycle low (similar to Dec. ’18 and related to the sell-off of Aug. 2015). In the DJIA, that would also fulfill an 11 – 12 week high (Oct. ’18) – low (Dec ’18) – low (Mar ’19) – low (Jun ’19) – (low; Aug 19 – 30) Cycle Progression.”
S+P 500 & Nasdaq 100 trigger 2 – 3 week sell signals, corroborating July 11/12 NFLX sell signal (reprising its role as ‘canary in coal mine’) & July 15 cycle highs in most indexes. DJ Industrials projecting likely sell-off from mid-July into Aug. 19 – 30 (daily cycles should hone this to more specific dates). 40-Year Cycle & 4-Year Cycle project increasing trouble in/around Aug. ‘19… with a Aug. ’15-style sell-off becoming increasingly more likely! What could trigger August ’19 plunge?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.