Stock Market Danger Zone Intensifies! Tech/AI Stock Peaks Project Sharp Drops into August ‘24!
07/18/24 – “Stock Indices are whipping in both directions with the small caps surging into mid-July ’24 cycles as the NQ-100 is fulfilling the contrasting outlook for a quick, sharp drop…
This type of divergence is expected to continue throughout much of 2024 with a final peak expected – at least in some of the indexes – in October 2024. In the interim, a penultimate peak in July 2024 would reinforce that scenario and provide an even closer parallel to 2007.
The recent action is also very similar to what occurred in July 2007 – the previous phase of the 17-Year Cycle.
At that time, the DJIA had consolidated in May & June ’07 and then triggered a bullish surge during the second week of July (July 9 – 13, 2007) before spiking higher during the ensuing week and setting a new 1 – 2 month peak (July 16 – 20, 2007).
It then sold off into mid-August ‘07 before rallying into mid-October ‘07 and setting a final peak.
In 2024, the DJIA consolidated in May & June ’07 and then triggered a bullish surge during the second week of July (July 8 – 12, 2024) before spiking higher during the ensuing week (July 15 – 19, 2024).
Could it now set a new 1 – 2 month peak, sell off into mid-August, and then rally into mid-October and set a final peak?
There are several other index cycles that corroborate the potential for another multi-week high at this time… A peak at this time – the latest phase of that ~9 – 10-week cycle and the midpoint of the latest 20 – 21-week cycle – would corroborate future cycle highs…
As that rotation into small cap stocks was unfolding, the NQ-100 had already signaled a multi-week peak and was projecting a sharp drop…
The NQ-100 reinforced this 17-Year Cycle scenario with several independent (and non-correlated) cycles of its own…
In 2020/2021, the Nasdaq 100 surged for ~20 months before peaking.
In 2024, the Nasdaq 100 has now surged for ~20 months from its October 2022 bottom into July 2024.
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 a pullback in between.
That July 2024 peak also fulfills the 17-Year Cycle parallels to 2007, 1990 AND 1973 – reinforcing that major, overriding cycle. (In each of those years, a final or secondary intra-year peak was set in July.)” TRADING INVOLVES SUBSTANTIAL RISK
Stock Indexes set decisive peaks projected for mid-July 2024, in sync with overall 17-Year Cycle analysis and analogues. The NQ-100 is reinforcing expectations for parallels to 2007, in line with the 17-Year Cycle of Stock Market Peaks (decisive peaks in July 2007 AND July 2024). Several timing indicators also projected a critical top for July 2024… and a sharp drop into August 2024! That peak has been confirmed!
A key ‘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 is already pinpointing 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 validated 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.