Stock Sell Signals Reinforced; DJIA Projects Quick Plunge to ~41,800; Dec 17 – 20th = Danger Period!
12/11/24 – “Stock Indices are showing initial divergence with the S+P Midcap 400, DJTA & Russell 2000 declining from their November 25th (cyclic) peaks while tech stocks and indexes extended rallies into the first half of December…
Small cap and mid-cap stock indexes, as described in early-October ’24, fulfilled expectations to mimic the action of June/July 2024 and lead an overall stock rally into late-November ’24 (see excerpt on page 2).
All three surged right to multi-month range-trading targets – at 3400/IDX, 17,600/DJTA & 2460/QR (2440/cash) – and peaked precisely during the most synergistic convergence of daily, weekly & monthly cycles on Nov 22/25th… after rallying 11 – 14% in Oct/Nov ’24 (DJIA, SP & NQ rallied 7 – 8%) – much like the disparity in June/July 2024.
The DJTA has plunged (even as airline stocks surged) and already closed below its 4th wave of lesser degree support (Nov 20 low) – a key level of downside wave determination – after turning its daily trend down (confirming a multi-week peak)…
The DJIA recently turned its daily trend down, joining these other indexes signaling reversals. The DJIA & S+P 500 were only able to rally 7 – 8% in Oct – Nov/Dec, reinforcing the divergence between those indexes and the smaller cap ones.
The DJIA peaked while fulfilling a ~4-week (25 – 28 day) low-low-low-(high) Cycle Progression and could see an initial drop into Dec 16 – 19th… a multi-week drop to 41,600 – 41,800/DJIA.
The S+P 500 initially topped while fulfilling the latest phase of a ~1-month low-low-low-low-(high; Dec 4 – 6th) Cycle Progression that has timed successive turning points in the first 3 – 4 trading days of each month. It peaked in line with multiple resistance levels at 6173 – 6178/ESH but would not turn its daily trend down until a daily close below 6107/ESH.
The one index to show new strength since late-Nov is the same index that was lagging in recent months. The NQ-100 has now rallied 10% from its October low as it attacks its Intra-month PLLR at ~22,150/ NQH. It could peak at any time but would not show any signs of topping until a daily and weekly close below [reserved for subscribers].” TRADING INVOLVES SUBSTANTIAL RISK
Stock Indexes triggered sell signals in late-Nov/early-Dec ’24 after fulfilling the October/November outlook for surges into November 25th when the S+P Midcap, DJTA & Russell 2000 were projected to set multi-month peaks (near major upside range-trading targets at ~3400/IDX, ~17,600 & ~2460/QR). They perfectly fulfilled those projections – both price AND time – consuming the final upside potential for 4Q 2024. That ushered in a dangerous 3 – 4 week period with its most precarious period on December 16 – 20th.
Stocks Positive into October 17th/18th, Then Late-November; S+P 400 to Lead Way Higher
The DJIA peaked shortly after and quickly triggered new sell signals. The 17-Year Cycle also remains focused on 4Q 2024 as the most likely time for a major peak in equities with the final weeks of 2024 representing a precarious time for stocks. Cycles and timing indicators are already identifying a pair of likely time frames when the sharpest sell-offs are more likely… and when future lows are expected. The first one arrives in December ‘24!
Why are S+P Midcap, DJTA & Russell 2000 Projecting Plunges From Nov 25th Cycle Peaks?
How is DJIA Projecting Multi-Week Drop to ~41,800/DJIA?
Why are Major Range Targets in DJTA, IDX AND RUT Validating a Multi-Month Top?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.