Stock Market Sell Signals! Daily & Monthly Trends Trigger Early-May Sell Signals… Multi-Week Drop Expected to Follow.
Stock Market Sell Signals! Daily & Monthly Trends Trigger Early-May Sell Signals… Multi-Week Drop Expected to Follow.
05/04/19 Weekly Re-Lay – “Stock Indices have initially fulfilled the 3 – 6 month outlook for an overall advance from late-Dec. into May 2019 – when a multi-month peak is most likely.
May 2019 is the convergence of monthly cycles in most domestic indexes and in many global indexes, as well. It has been in focus since Sept. ’18 and is now giving some technical reasons to expect (at least) a multi-week high in the coming weeks.
The first sign is a textbook trend signal. Several key indexes (DJIA, SP, NQ, etc.) turned their monthly trends down in Dec. 2018. Those reversal signals usually occur at the end of an initial move and quickly spur a reactive rally. It is what transpires during that reactive rally that either validates the trend signal… or not.
The indexes rallied enough to generate a neutral signal at the end of March** and a second neutral signal at the end of April. That pinpoints May 2019 as the decisive month, when a multi-month high is most likely. (**DJIA is one exception, having only neutralized its monthly downtrend once.)
A second, somewhat obvious sign involves many indexes approaching their highs of Sept./Oct. ’18 (which are also record highs in most of them). That is a crucial resistance level that is likely to repel these markets, at least on the first test. Even if those levels are ultimately broken, an initial test often triggers some selling.
Then there are the daily trends, which turned down in the DJTA and then the MMX and Nasdaq 100 (futures but not cash). Here again, that usually signals… [reserved for subscribers]”
Multiple indexes turn daily trends down while generating a monthly trend sell signal in early-May. Stocks have entered a dangerous period when a multi-month peak has been forecast after precisely fulfilling late-2018 forecast for a rally into April/May 2019 and back up toward their Sept./Oct. ’18 highs. Daily & weekly cycles peaked on April 22 – May 3 and are corroborating that May 2019 begins a precarious period for equity (and energy) markets! Watch for initial sell-off.
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.