Stock Plunge into Late-Feb. Precisely Fulfilling 2-Year & 40-Year Cycles!
02/25/20 INSIIDE Track Stock Index Update: “Stock Indexes plunged again, fulfilling the anticipated Intra-Month Inverted V Reversals lower – in which an initial low is set at the beginning of the month, a peak is set near mid-month, and a drop to lower lows occurs at the end of the month.
They have also turned their intra-month trends down, reinforcing the potential for a drop to monthly support/target levels for Feb. 2020 (those levels are reprinted above, from the Weekly Re-Lay).
As the primary indexes are attacking those monthly projected support levels, the Transports remain the leader and have just attacked their monthly HLS (extreme downside target for Feb. ’20) at 10,089/DJTA. This comes as they are initially fulfilling weekly cycles (but does not prevent further selling from occurring).
This action is fulfilling the majority of what has been described for the past few weeks. The Feb. 13 INSIIDE Track Intra-Month Update elaborated on that and described the unique and synergistic interaction of the 4-Shadow Signal, a developing Intra-Month Inverted V, a host of corresponding indicators as well as the 2-Year Cycle AND 40-Year Cycle.
All of those were converging during the second half of February 2020 and projecting a sharp sell-off from Feb. 17 into Feb. 26 – 28…
In 2018, the indexes subsequently rallied for 2 – 3 weeks before setting intermediate highs.
In 2020, the indexes have rallied for almost 2 weeks, with the intra-month uptrends projecting add’l upside into Feb. 13 – 17.
And that is where the 2-Year Cycle is poised to intersect the 40-Year Cycle.
As repeatedly detailed, stock indexes have traded remarkably similar – in 2018 up to the present – to how they did in 1978 – 1980. The latest comparative phase involved an early-year pullback in Jan. 1980 – with stocks bottoming in the first three trading days of the new year – followed by a rally into Feb. 13, 1980… and then a sell-off into late-March ’80.
In 2020, stocks saw an early-year pullback in Jan. – with stocks bottoming in the first three trading days of the new year – followed by a rally into Feb. 13, 2020.
Coincidence?
Perhaps.
But the similarities have been uncanny… for over two years. That does NOT mean the swings are exactly the same or that 1980 is expected to presage every turning point in 2020. However, it does provide a little bit of a blueprint or roadmap for when to expect key turning points IF they are corroborated by other price and cycle analysis… SYNERGY!
As for the near-term, stock indexes turned their intra-month trends up last week, extending the more likely time for an intermediate peak to mid-month (Feb. 13/14 or 17).
The DJTA is still targeted for a second decline into Feb. 26 – 28 (180 degrees/6 months from their Aug. 27/28 low and the culmination of multiple daily high-high-low and low-low-low Cycle Progressions). That would perpetuate the 12 – 14 week low-low-low-low Cycle Progression that timed the early-Dec. low.
Its initial decline lasted 14 days (Jan. 17 – 31). If the second decline matches that (‘c = a’ wave structure) and begins on Feb. 12 – 14, it would project a drop into Feb. 26 – 28. So, a reversal lower should take hold in this time frame.”
More recently, daily sell signals projected a drop from Feb. 19 into Feb. 24/25. That has now taken place but this week’s action could easily extend that sell-off since repeated support levels have been broken – reinforcing intermediate indicators like the 4-Shadow Signal (triggered in late-Jan. and projecting a final rally – to lower highs in the DJTA and to higher highs in the primary indexes – quickly followed by a larger decline in sync with the 2-Year Cycle & 40-Year Cycle) one that preceded it).
As stated previously, this is usually the start of a much larger process. And, once again, a fundamental driver (coronavirus; Covid-19) appears to validate those cycles and indicators.
Many factors argue for an initial low this week while warning of additional selling in the future. (Transports have been showing that a second sell-off could begin in late-March ’20; more on that if/as additional validation emerges.) The next corroborating signal will likely be the weekly trend pattern. That would take [reserved for subscribers]…”
Stocks plunging in perfect sync with 2-Year Cycle & over-arching 40-Year Cycles, Intra-Month Inverted V pattern, uncanny weekly Cycle Progression in Transports, and Feb. 19 daily sell signals – initially fulfilling ominous 4-Shadow Signal triggered in late-Jan. That warned that a much larger drop was to follow (within weeks) and was corroborated by DJTA cycles – projecting a plunge into late-Feb./early-March.
What Does 40-Year Cycle Reveal for 2020 – 2022?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.