Stock Market (Early-Jan ’22) Top; Danger Period Could Last into March ‘22!
01/08/22 Weekly Re-Lay – “Stock Indices are selling off after initially fulfilling analysis for subsequent highs in early-Jan. The index that often leads these reversals, the DJTA, rallied to short-term resistance (~16,600) and set an initial high on the second trading day of the month.
That is the same day (in the respective months) that created a very precise ~2-month/~60-day high-high-high-(high) Cycle Progression – previously timing highs on the second trading day of the month in July, Sept. & Nov. ’21…
Other indexes, like the Russell 2000 & NQH, were more focused on price objectives to time another multi-week peak. The Russell 2K & Nasdaq-100 attacked critical resistance (2280/QRH & ~16,700/NQH) and reversed lower – signaling slightly larger-magnitude corrections. The intra-month trends turned down in many indexes.”
Stocks are adhering to the outlook for a decisive peak in early-Jan ’22 followed by a new (and larger, based on the Nov/Dec ’21 4-Shadow Signals) decline to follow. 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. This action is initially corroborating the outlook for a dramatic shift in 2022 and could trigger an overall correction into March ‘22.
The NQ-100, Russell 2000 & DJTA reached multi-month upside targets in Nov ’21 and signaled a wave ‘5’ peak on various levels – signaling that those highs could hold for many months (or longer).
How Could 2-Year Cycle Impact Jan – March ’22?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.