Stock Market Sell-off; Jan 24 – 28 Low Could Trigger Brief Bounce into early-Feb.
01/22/22 Weekly Re-Lay – “Stock indices have dropped sharply since fulfilling the outlook for a divergent peak in early-Jan ’22 and the entry into a dangerous period for equities. Many stocks and indexes had already signaled 3 – 6 month (or longer) peaks in Nov ’21, after fulfilling multi-year upside price targets and wave objectives (as well as decisive range-trading targets). That set up early-Jan ’22 as the time for a sharper sell-off, which has since unfolded. Initial lows could be seen at this time…
Stock Indices added a key level of corroboration to the ongoing outlook for a divergent peak in early-Jan ’22 followed by a higher-magnitude decline than what was seen in Nov/Dec ’21 (due to the 4-Shadow Signals triggered during those previous declines).
The S+P 500 and Nasdaq 100 indexes reversed their weekly trends to down.
That is a lagging/confirming indicator that often times (within a week or so) an initial low and the onset of a reactive 1 – 3 week bounce. It also signals that a higher magnitude decline is unfolding and another sell-off should follow that reactive rebound. That aligns with daily and weekly cycles that converge on Jan 31 – Feb 4.
This also dovetails with the broader outlooks for stocks and indexes like the Russell 2000 and DJTA, both of which fulfilled multi-year upside targets when they peaked in early-Nov ’21. As a result, the Nov/Dec ’21 declines represented the ‘A’ wave of a larger-magnitude ‘A-B-C’ correction ushered in at that time.
The ‘B’ wave was projected to peak in early-Jan ’22 – creating some of the divergence forecast to occur at that divergent top.
That would then usher in a ‘C’ wave sell-off – often the most dynamic and/or devastating wave in an overall correction – following an early-Jan ’22 peak. On balance, that could last into mid-March ’22.
At the same time these signals are ushering in the likely time for an initial low (as well as an ongoing ~30-day/degree cycle that portends a 1 – 2 week low within 1 – 2 trading days of Jan 20), the Nasdaq 100 just plunged to the next level of pivotal range-trading support at ~14,400/NQH (on the heels of NFLX’ sharp plunge).
The NQ-100 has now created the largest correction since March ’20, a higher-degree 4-Shadow Signal that could have more negative repercussions after an intervening rebound. And, it has plunged to its 4th wave of lesser degree support – the early-Oct ’21 low at 14,366/NQH.
The DJIA has twice neutralized its weekly uptrend and needs a weekly close below 34,229/DJIA to reverse that weekly trend to down.
Stocks continue to swing with short-term cycles, topping in early-Jan, then dropping into Jan 7/10 and bouncing into Jan 12/13 – the latest phase of the 11 – 12 trading day high-high-high-high Cycle Progression that helped time the late-Dec. peak in the NQ-100. In many indexes, that was expected to spur a drop into Jan 20 (+ or – 1 trading day). The NQ-100, however, could stretch its decline into Jan 25 – 27, when related daily cycles bottom.”
Stocks are adhering to the outlook for a decisive peak in early-Jan ’22 followed by a new multi-month plunge to follow. That has been expected to trigger the more dynamic (and usually more devastating) ‘C’ wave declines in Jan/Feb ’22 with an intervening (lower) high expected in early-Feb. “A more vulnerable period unfolds after that.”… at the same time Gold has been forecast to see an accelerated advance into Feb 21 – 25 – hinting at more trouble on the horizon.
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) and trigger the largest declines since March ‘20.
How Does This Impact 10, 20 & 40-Year Cycles Colliding in 2022?
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