Stock Market Warning: Jan. 20 – 24 Cycles Portend Late-Jan. Sell-off! Stocks Headed for Sharp Reversal!!
01/18/20 Weekly Re-Lay: “If a high is set in the coming week, it should lead to a quick, sharp sell-off into early-Feb. ’20…
Stock Indices have rallied convincingly after repeating the early-month patterns of the past several months – spiking sharply lower in the opening days BUT not turning their intra-month or daily trends down.
They tested and held weekly HLS levels in early-Jan., signaling that a multi-week low should take hold soon after. That low came the following week and ushered in a new multi-week advance – increasing the potential for this rally to stretch into the final two weeks of January.
That is now reaching fruition with the indexes validating this 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.
The test of these levels indicates that a 1 – 2 month peak is now becoming more likely – ideally in the next 1 – 2 weeks. That would also be in sync with the 8-Month & 16-Month Cycles that project multi-month peaks for late-Jan. 2020.
And it would dovetail with the 2-Year Cycle that projects a late-Jan. ’20 peak followed by a sell-off into Feb. 2 – 13, 2020.
On a weekly basis, a peak in the next two weeks would perpetuate an 11 – 12 Week high-high-high-high-low-low-low-low-high-(high) Cycle Progression in the DJ Transports, an index that also just attacked its weekly LHR… Meanwhile, the DJIA has reached the primary target for its 5th wave (from the Aug. ’19 low) but has not yet signaled a top or a reversal lower…
The first sign of reversals lower would be [reserved for subscribers].”
Stock indexes entering pivotal time when late-Jan. 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. The early-Jan. ’20 lows corroborated that scenario and project rallies to 29,211 – 29,292/DJIA & 3307 – 3340/ESH – targets that have now been reached.
How Sharp Could late-Jan. Sell-Off Be?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.