Stock Market Warning II: Jan. 20 – 24 Cycle High Has Arrived; Portends Late-Jan. Sharp Sell-off in Equities!
01/20/20 INSIIDE Track Intra-Month Update: “Stock Indexes have rallied from daily cycle lows in early-Jan. – repeating the early-month patterns of the past several months by spiking sharply lower in the opening days BUT not turning their intra-month or daily trends down.
That was projected to spur a rally into the second half of January 2020… which has since unfolded.
Corroborating that, the 2-Year Cycle, 40-Year Cycle, 8- and 16-month cycles and an 11 – 12 week cycle (most evident in the DJ Transports since the Jan. ’18 peak) all agreed on this outlook.
In sync with that, a high is expected to take hold on Jan. 20 – 24 (Jan. 27 – 31, at the latest) and trigger a quick, sharp drop into early-Feb.
The indexes validated that scenario by spiking up to the convergence of multiple weekly LHRs (weekly extreme upside targets) and monthly resistance levels at 29,211 – 29,255/DJIA, 3304 – 3340/ESH & 9080 – 9156/NQH this past week – fulfilling the majority of upside objectives.
The test of these levels indicates that a 1 – 2 month peak is now becoming more likely – ideally in the next 1 – 2 weeks.
Stock indexes have fulfilled much of the upside potential generated from their early-Jan. lows. While this does not (yet) signal a peak, it does show that the remaining upside potential is limited. The first sign of reversals lower would be [reserved for subscribers].”
Stock indexes enter decisive time when late-Jan. (Jan. 20 – 24) peak and sell-off is projected. Equities fulfilling analysis for rally into Jan. 20 – 24, ‘20 – the convergence of weekly, monthly & multi-year cycles including an uncanny 2-Year Cycle and the 40-Year Cycle (as well as the 8-Month & 16-Month Cycles) – that should trigger a sharp sell-off in late-Jan./early-Feb. Upside price objectives (29,211 – 29,292/DJIA & 3307 – 3340/ESH) have been met, severely limiting any remaining upside potential. Look for sequence of reversals, in diverse stocks and indices, over next week.
What Could Trigger Late-Jan. Stock Market Sell-Off?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.