Stock Market Sell Signals III: Transports Reinforce Negative Signals; Indexes Need to Close Below Recent Lows to Confirm…
Stock Market Sell Signals III: Transports Reinforce Negative Signals; Indexes Need to Close Below Recent Lows to Confirm…
05/11/19 Weekly Re-Lay – “Stock Indices suffered an initial sell-off, spiking down to monthly support and weekly HLS levels (extreme downside targets for this past week) in fulfillment of late-April signals. They must close below this past week’s lows to signal that a multi-month peak is taking hold – the perpetuation of an ~8-month low-low-low-low-high-(high) Cycle Progression that last timed the Sept. ’18 highs…
Stock Indices sold off after peaking in late-April/early-May 2019 – the time that has been deemed most likely for an intermediate peak. They dropped into May 10, fulfilling several short-term indicators and the weekly 2 Close Reversal sell signal (on April 26) in the Transports.
The Transports continue to give some of the clearest signs, quickly validating the April 26 signal by providing a new daily trend sell signal. After turning several short-term trends down, the DJTA rebounded for two days and generated two neutral signals against their new daily downtrends – the textbook setup for a secondary high. They set that high while surging to the daily LHR on May 3.
All of the indexes turned back down on May 6 – 8 and sold off into May 10 with the Transports perpetuating a very short-term cycle that has prevailed the past 4 – 6 weeks. It is a 6 trading day high (4/05) – high (4/15) – high (4/24) – low (5/02) – low (May 10) Cycle Progression. (Ideally, this would continue and create lows on May 20 & May 29.)
All three primary indexes spiked below their weekly HLS levels (extreme weekly downside targets)…”
Stock indexes are reinforcing late-April/early-May sell signals and are poised to escalate sell-offs to the next higher magnitude. They are confirming the dangerous period forecast for May – Aug. 2019 after fulfilling ongoing forecasts for a multi-month peak in April/May. Daily & weekly cycles peaked on April 22 – May 3 and were quickly validated by multiple sell signals. What would turn weekly trends down and confirm a peak?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.