Stock Indexes Fulfill Early-Feb. Sell Signals; Trigger New Buy Signal in Stronger Stocks.
03/16/20 INSIIDE Track Stock Index Update: “Stock Indexes spiked a little lower today, with the S+P 500 & Nasdaq 100 futures failing to close below Friday’s lows after spiking below those levels… These are decisive price levels that represent extremes on a higher-magnitude basis. (It is also worth noting that the extreme level in the DJIA is just slightly above where the DJIA closed on Jan. 20, 2017 – Inauguration Day; see March 2020 INSIIDE Track for related discussion.)
They are being attacked in the week after all three indexes spiked down to (and held) their weekly HLS levels and within two days of when the indexes plunged to their daily HLS levels on Thursday – all warning of an imminent (1 – 2 week) bottom in the mid-month period – ideally on March 13/16.
By dropping to new multi-year lows, the indexes have also mimicked what occurred in Feb./March 1980 – another affirmation of the 40-year Cycle.
Reinforcing the potential for (at least) a 1 – 3 week bottom, the primary indexes completed a full weekly trend reversal last week. That is a lagging/confirming indicator that is often triggered at the same time an initial low is forming. In a majority of cases, that low takes hold in the ensuing week. That is this week.
…the convergence of all these factors provides the first time since the peak when enough cycles and indicators are arguing for a bounce and worth heeding.
As a result, equity investors could look to re-enter the market [see current publications for ongoing analysis & trading strategy updates]”
Stocks fulfill 3 – 5 week sell signals triggered on Feb. 7 – 14; Complete projected overall plunge into late-March ’20 – when a multi-month bottom is expected. Daily/weekly extreme indicators project initial bottom on March 16.
40-Year Cycle and 2-Year Cycle could still extend drop in DJIA into March 23, 2020 – the precise time that index bottomed in 2018 AND 1980.
How High Could 2Q ’20 Rebound Reach?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.