Stock Market Signals: Equities Enter Corrective Phase… Overall Advance into late-April/early-May Still on Track.
Stock Market Signals: Equities Enter Corrective Phase… Overall Advance into late-April/early-May Still on Track.
03/06/19 Weekly Re-Lay Alert: “Stock Indices are showing additional signs of topping (on a 2 – 4 week basis) after all the primary indexes fulfilled their 1 – 2 month upside targets. Several signs of upside culmination have appeared in indexes like the MMX (Major Market Index) that just spiked to new all-time highs, fulfilling its monthly trend pattern, and the S+P 500 that precisely retested its Dec. 3 high – the ~2-month upside target for this rally.
The DJTA peaked while perpetuating an 11 – 12 week high-high-high-(high) Cycle Progression (Feb. 19 – March 1) and a related 78 – 83 day low (Apr. 6) – low (Jun. 28) – high (Sept. 14) – high (Dec. 3) – high (Feb. 19 – 22) Cycle Progression and has sold off since then. The Transports set their intraday high on Feb. 19 and their highest daily close on Feb. 21.
The DJIA topped next, peaking on Feb. 25 and moving lower since then, followed by the S+P 500 & Nasdaq 100 (which spiked to new highs on Monday). On a smaller scale, this is similar to Sept. – Oct. 2018, when the various indexes peaked in succession (like a multi-car roller-coaster in which each car summits at a slightly different time).
In that case, equities experienced sharp 2 – 4 week declines as part of an overall 2 – 4 month decline.
In this case, equities could experience a sharp 2 – 4 day decline as part of an overall 2 – 4 week decline.”
Stocks have entered a corrective phase that was projected to initially last into at least March 4 – 8. That could create a ~month of consolidation before a new leg higher.
This remains in the broader context of equities projected to set 3 – 6 month or 6 – 12 month lows in late-2018 and then see a strong, multi-month rally into May 2019 (weekly cycles pinpoint late-April – early-May ‘19 as ideal period for a peak) – reinforcing 40-Year Cycle parallels.
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.