Stock Index Trading: Stocks Approaching late-April/early-May ’19 Cycle Peak; Reinforcing Why May 2019 is Vulnerable.
Stock Index Trading: Stocks Approaching late-April/early-May ’19 Cycle Peak; Reinforcing Why May 2019 is Vulnerable.
04/20/19 Weekly Re-Lay – “Stock Indices continue to fulfill the 3 – 6 month outlook for an overall advance from late-Dec. into May 2019 – when a host of weekly & monthly cycles peak (in domestic and global equity indexes)…
Stock indexes are diverging on a short-term basis, with the Russell 2000 dropping sharply for two days as the DJIA, NYA and S+P 500 pulled back after vacillating near recent highs. The S+P 500 generated an outside-day/2 Close Reversal lower on April 17 and then reversed higher on April 18 – but failed to complete a 2 Close Reversal higher.
The Russell 2000 experienced another quick 2-day sell-off, after spiking higher into mid-month, this time producing a sharper decline, dropping below its ascending daily 21 High MAC, neutralizing its daily & intra-month trends and beginning to flatten the direction of the 21 MAC.
The Russell might also be giving the strongest cyclic clue for when to expect [reserved for subscribers]”
Daily & weekly trend patterns reinforcing overall outlook for equities to bottom in late-2018 (~3.25-Year Cycle) and then see a strong, 4 – 5-month rally into April/May 2019 (weekly cycles pinpoint late-April – early-May ‘19 as ideal period for a peak) – when a significant peak is expected. April 22 – May 3 is shaping up as the most likely time for a multi-month peak.
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.