Stock Market Danger Period in Late-Jan./early-Feb: Sharp Sell-off Projected!
01/25/20 Weekly Re-Lay: “Stock Indices fulfilled analysis for an advance from early-Jan. into Jan. 20 – 24 and are now in the ideal time frame for an intermediate peak. If a high is confirmed, it should lead to a quick, sharp sell-off into early-Feb. ’20…
Stock Indices are in the midst of a multi-week period when competing cycles (some timing highs; others timing lows) converge – in late-Jan./early-Feb. and usher in the potential for a quick, sharp sell-off.
A peak in the current period (Jan. 20 – 31 with greatest synergy on Jan. 23 – 28) would perpetuate an 11 – 12 Week high-high-high-high-low-low-low-low-high-(high) Cycle Progression in the DJ Transports (and fulfill its weekly LHR).
A peak in late-Jan. ’20 would also fulfill the 16-month low-low-low-high-(high) Cycle Progression that timed the Sept. ’18 peak (and a related 8-month cycle).
It would also fulfill an uncanny 2-Year Cycle that also precisely timed the Feb. ’18 low and subsequent late-Sept. ’18 peak…
From a price perspective, the primary indexes have fulfilled the upside objectives from their early-month spike lows and subsequent signals – spiking up to the convergence of multiple weekly LHRs and monthly resistance levels like 3304 – 3340/ESH. That is what was necessary before an intermediate peak would become more likely.
Stock indexes triggered an initial 3 – 5 day peak this past week but would not elevate that until their daily trends reverse down [reserved for subscribers]… the Russell 2000 and NYSE Index (and some key stocks) were able to generate those daily trend reversals… That would set the stage for a sharper sell-off in the ensuing 1 – 2 weeks.”
Stocks are in a dangerous period when a quick, sharp sell-off is projected. Stocks have fulfilled ongoing forecast for rally into Jan. 20 – 24, ‘20 – the convergence of weekly, monthly & multi-year cycles that should trigger a sharp sell-off in late-Jan./early-Feb. Primary indexes have reached upside price objectives for this rally – at 29,211 – 29,292/DJIA & 3307 – 3340/ESH – and begun to trigger reversal signals. Look for sequence of reversals, in diverse stocks and indices, over next week.
What Would Be Next Signal for Late-Jan./Early-Feb. Sell-Off?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.