Stock Market (Early-Jan ’22) Cycle Highs & 4-Shadow = Danger Period.

01/05/22 Weekly Re-Lay Alert – “The DJTA rallied to short-term resistance (~16,600) and set an initial high on the second trading day of the month – precisely perpetuating the ~2-month/~60-day high-high-high-(high) Cycle Progression that previously timed highs on the second trading day of the month in July, Sept. & Nov. ’21…

The new intra-month trends are now the key.  It would take daily closes below the current intra-month lows (the lowest point of Jan 3 – 5 in each index) to turn the intra-month trends down and project additional selling into mid-month and/or to monthly support.

The intriguing thing about an index like the NQ-100 is that it just dropped to its monthly support (15,492 – 15,737/NQH) while twice neutralizing its daily uptrend.  It would not turn that daily trend, nor the intra-month trend, down until a daily close below 15,752/NQH.

The NQH has divergent short-term cycles, including an 11 – 12 trading day high-high-high-high Cycle Progression that helped time its late-Dec. peak.  It could also be forming an opposing 11 – 12 trading day low-low-low Cycle Progression if it bottoms now… If that occurs, it could spur a rebound to a lower high next week.”


Stocks are adhering to intermediate cycles and the outlook for a bounce into early-Jan ’22 before a new sell-off becomes very likely.  The DJTA just fulfilled a potential peak, perpetuating multiple cycles with a peak on the second trading day of Jan ’22.

That could usher in the more dynamic (and often more devastating) ‘C’ wave declines in the coming weeks, following an early-Jan ’22 divergent peak.  Continued divergence is expected as the equity markets prepare for what could be a dramatic shift in 2022.

The NQ-100, Russell 2000 & DJTA reached multi-month upside targets in Nov ’21 and signaled a wave ‘5’ peak on various levels.  At the very least, that projects subsequent ‘A-B-C’ declines with the ‘A’ legs recently unfolding and the ‘B’ waves projected to peak in early-Jan. ’22.  The ‘C’ waves are now poised to begin.

Why Does early-Jan ’22 usher in such a dangerous period for stocks?  What does this mean for impending ‘C’ wave declines in a majority of (weaker) indexes??

Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.