Stock Market Sell Signals IV: Indexes Bouncing But Approach New Selling Resistance; Decline Poised to Extend into late-May.
Stock Market Sell Signals IV: Indexes Bouncing But Approach New Selling Resistance; Decline Poised to Extend into late-May.
05/15/19 Weekly Re-Lay Alert: The China Syndrome II – Stock Indices spiked lower on Monday with the DJTA, Russell 2000, Nasdaq-100, Major Market Index and other indexes attacking their monthly HLS levels (extreme downside targets for May 2019) and initially bottoming. This comes after many of those indexes tested and held weekly HLS levels last week, setting the stage for an intermediate low in the ensuing weeks.
This action fulfills the weekly & daily sell signals from late-April and now necessitates new daily signals to extend these declines. In the meantime, they could bounce for another day or two and (at least) make it back to their now-descending daily 21 Low MACs (currently at ~26,315/DJIA, 2881/ESM & 7620/NQM).
Since those levels closely coincide with key daily & weekly trend points, they should be watched closely. If equities are going to reverse back down and enter another 3 – 5 day sell-off, it is likely to occur near those levels. (In that scenario, the ideal structure would be to see a test of those levels and subsequent daily 2 Close Reversal sell signals.)
The action of the past three weeks initially validates expectations for a multi-month peak to take hold at this time – the latest phase of an ~8-month low-low-low-low-high-(high) Cycle Progression and an over-arching 15 – 16 month low-low-high-high-high-(high) Cycle Progression that dates back to late-2012.
This is just the first phase of an expected corrective period – from late-April/early-May into Aug./Sept. 2019 – so that needs to be kept in perspective. For instance, the weekly trend patterns would easily allow for another 1 – 2 weeks of downside before an initial intermediate decline would become ‘oversold’ or primed for a multi-week low. That could be clarified by the action of the next 1 – 2 days.”
Stock indexes are reinforcing late-April/early-May sell signals and are poised to escalate sell-offs to the next higher magnitude. That could occur in the next day or two if/when indexes test key resistance levels, where a rebound peak is most likely. They are confirming the dangerous period forecast for May – Aug. 2019 and could see selling into late-May before becoming oversold. 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? And when is this most likely??
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.