Stock Market Danger Zone: Brief Late-July Bounce Should Trigger Larger Plunges!
07/26/24 – “Stock Indices are expanding their divergence while adhering to 3 – 5 day and 1 – 2 week trends, signals and cycles. The S+P 500 & Nasdaq-100 fulfilled projections for another quick sell-off with the NQ-100 attacking and holding key downside targets just below 18,900/NQU – holding monthly 2nd Close Support and bouncing.
That could/should spur a rally into July 29/30th in line with daily cycles and the daily trend pattern in the Russell 2000, DJTA, DJUA & S+P Midcap 400 – all of which portend late-July ’24 peaks. In each of those indexes, the daily trends remained positive during this past week’s tech sell-off – corroborating the outlook for rallies to new highs after the tech-led sell-off of July 24/25th.
Perhaps the most revealing of those indexes is the one that has been given some added focus the past 4 – 6 weeks… the DJ Utility Average. While that index often moves at odds to the others, its recent action and analysis has been telling.
It fulfilled the mid-June outlook for an additional 1 – 2 week drop to its rising weekly 21 High MAC. That was projected to spur a surge to new intra-year highs while fulfilling multi-month cycles (late-July ’24) and multi-month upside targets (967 – 979/ DJUA).
A peak in July 2024 would fulfill a 26 – 27-month low (Sept ’15) – high (Nov ’17) – high (Feb ’20) – high (Apr ’22) – (high; July ‘24) Cycle Progression…
Reinforcing those broader cycles…
The NQ-100 is powerfully reinforcing the 17-Year Cycle scenario (anticipating intra-year highs in July ’24 & possibly October ‘24) as well as several independent (and non-correlated) corroborating cycles of its own…
In 2020/2021, the Nasdaq 100 surged for ~20 months before peaking.
In 2024, the Nasdaq 100 matched that advance and surged for ~20 months from its October 2022 bottom into July 2024 – when a multi-week and possibly multi-month top was most likely.
That ~20-month advance was split into successive ~9-month advances that occurred 12 months apart (Oct ‘22 into July ‘23 and October 2023 into July 2024) with the July 2024 peak fulfilling this form of wave symmetry.
It is expected to set a multi-month low in August ’24 IF certain criteria are fulfilled.
The action of recent days is reinforcing short-term cycles and expectations that will be discussed in Weekly Re-Lay publications.” TRADING INVOLVES SUBSTANTIAL RISK
Stock Indexes set decisive multi-month peaks projected for mid-July 2024, with the NQ-100 perpetuating parallels to 2007, in line with the 17-Year Cycle of Stock Market Peaks. Several timing indicators also projected a critical top for July 10/11, 2024… and a sharp drop into August 2024! The Danger Zone is intensifying and poised to trigger sharp plunges in key stocks and indexes!
A revealing ‘proxy’ or ‘cue’ stock (a stock that often gives advanced signs of shifts in a broader market) fulfilled a (multi-month) peak projected for June 17 – 21st at/near 140.0/NVDA. It then pinpointed primary multi-month downside targets (below 97.0/NVDA)… that would involve a serious sell-off in this and other tech stocks leading into August ‘24. Recent action has reinforced that outlook.
A secondary high was projected for July 8 – 12th and was fulfilled with uncanny precision… projecting a sharp drop into early-August. It generated a new sell signal – along with the Nasdaq-100 – and should trigger a larger sell-off in both markets into August 2024… in perfect sync with the 17-Year Cycle!
How Does Projected Mid-July 2024 Peak Reinforce Outlook for Sharp Sell-off into August ’24?
Why Did 17-Year Cycle of Stock Peaks Forecast Pivotal NQ + SP 500 Highs for July 2024?
Will This Corroborate the Projected 2025/26 Recession (& Stagflation) Cycle?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.