Stock Indexes Complete Decisive Period; Transports Fulfill Nov. 21/22 Cycle Low & Project Rebound; DJIA, S+P 500 & NQ-100 Remain Positive.
11/23/19 Weekly Re-Lay: “Stock Indices set a series of tops – producing their highest weekly closes on Nov. 1, 8 and/or 15 – perpetuating a web of 11 – 12-week, 22 – 23-week & 45 – 46-week low-low-(high) Cycle Progressions as well as a corroborating 29 – 30-week high-high-high-(high) Cycle Progression.
They fulfilled 2 – 3 month upside potential – rallying into Nov. ’19 and perpetuating a ~7-month low (July ’17) – low (Feb. ’18) – high (Sept. ’18) – high (April ’19) – high (Nov. ’19) Cycle Progression… If that highs hold, it would project a future high for ~Feb. 10, 2020 – the culmination of the first 40-day cycle of the new year.
In 2020, it is also a recurrence of a ~2-Year Cycle that has created a ~2-Year (105 – 106-week) low (Jan. ’16) – high (Jan. ’18) – high (early-Feb. ’20) Cycle Progression. Due to the quick, sharp nature of the early-2016 & early-2018 declines, other indexes maintain a corroborating ~2-Year low (Feb. 3 – 7, ’14) – low (Feb. 8 – 12, ’16) – low (Feb. 5 – 9, 18) – low/high? (Feb. 3 – 12, 2020).
A high in Feb. ’20 would also fulfill an overlapping 29 – 30 week low (Dec. ’18) – high (Jly. ’19) – high (Feb. ’20) Cycle Progression. (The 2007 – ’09 drop unfolded in a web of 14 – 15 and 29 – 30-week cycles, that have continued to influence equities ever since.) That potential would be validated if stocks drop enough to neutralize – but not reverse down – their weekly uptrends in the coming weeks, likely bottoming on [reserved for subscribers]…
It would take daily closes below 27,675/DJIA, 3090.75/ESZ & 8231/NQZ to turn the daily trends down and confirm multi-week peaks. Until those occur, the trends are up and could spur a retest of the highs.”
Stock indexes are exiting a decisive two-day period when the Transports likely completed their initial sell-off, bottomed on Nov. 21/22, and should rally into Nov. 26/27. The DJIA, S+P 500 & Nasdaq 100 daily trend patterns remain positive and likely to spur rallies to new highs if/when Transports rebound.
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.