Stock Market Danger Period Begins Nov. 27; Transports Lead Rebound into Nov. 27; DJIA, S+P 500 & NQ-100 Poised for Spike Highs.
11/26/19 Weekly Re-Lay Alert – The Aftermath of a Decisive Two-Day Period: “Stock Indices are rendering divergent results with respect to weekly cycles in Nov. ’19. The DJTA remains below its early-Nov. high and is adhering to short-term expectations as well. As detailed on Nov. 19 & 20:
“As conveyed in the 11/19/19 INSIIDE Track Intra-Month Update, the Transports could see a sharp drop into Nov. 21 or 22 – perpetuating a 49 – 51 day low (June 25) – low (Aug. 15) – low (Oct. 3) – low (Nov. 21/22) Cycle Progression – and set a 3 – 5 day low.
That is now corroborated by the daily trend and daily 21 MAC signals that usually occur within 1 – 2 days of an initial low…While that low would not likely signal the end of this decline, it would usher in the potential for a rebound and several days of congestion before a second 1 – 2 week (or at least 3 – 5 day) sell-off…
The ESZ and NQZ cannot turn their daily trends down until the Nov. 22 close, at the earliest (trigger points are not yet established), expanding that focus to the next two days.
The DJCA (Dow Jones Composite of Utilities, Industrials & Transports) provides a nice compromise between the diverging Dow Indices. It retested its Nov. 7 high on Nov. 18 and then generated a similar outside-day/2 Close Reversal sell signal on Nov. 19 – mimicking the DJIA.
It needs a daily close below 9125/DJCA to turn its daily trend down and confirm a multi-week top…it has just dropped to its ascending daily 21 High MAC – and the low of its Nov. 6, 11 & 13 pullbacks…”
Along with daily cycles, daily trend & daily 21 MAC signals in the Transports – and daily trend & daily 21 MAC signals in the primary indexes – equities set daily lows on Nov. 21/22 and reversed higher. That followed a couple key ‘proxy stocks’ signaling lows a couple days earlier and reinforced the decisive nature of Nov. 21/22.
The daily trend signals in the DJIA, S+P 500 and NQ-100 all projected rallies back to their highs since those daily trends were unable to turn down. The Transports signaled something different…
The DJTA projected a reactive bounce during which the daily trend would ideally turn neutral (twice) but NOT reverse back to up. It has just generated the second neutral signal and would need a daily close above xx,xxx to reverse the daily trend up.
If, instead, a secondary (lower) high is being set and a new 1 – 2 week sell-off is expected to follow – as is the outlook conveyed last week – it should NOT give a daily close above 11,002/DJTA.
Markets usually peak and reverse lower in the 1 – 2 trading days after a second neutral signal is generated, so the next 1 – 2 days are the prime time for that to occur.
While that is occurring, with the Transports leading this topping process as is so often the case, the primary indexes have rallied to new highs…”
Stock indexes fulfilled analysis for a low on Nov. 21/22, and should rally into Nov. 26/27… after which a very precarious period will be ushered in on Nov. 27/29. The DJIA, S+P 500 & Nasdaq 100 daily trend patterns remain positive and likely to spur rallies to new highs as Transports rebound – setting stage for significant peak in equities on Nov. 25 – 29. Watch first week of December!
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.