Stocks Accelerating Plunges (into ~March 23?); Transports Targeting ~6,500.
03/12/20 INSIIDE Track Intra-Month Update: “Stock Indexes remain negative and would not even turn neutral – on a 1 – 2 week basis – until daily closes above 24,681/DJIA, 2767/ESM & 8140/NQM. They continue to fulfill the 40-Year Cycle outlook for sharp sell-offs in Feb./March 2020 – just as in Feb./March 1980.
In 1980, the DJIA spiked to new multi-year lows before setting a March ’80 low. In 2020, the DJIA has just spiked to new multi-year lows, dropping below its Dec. ’18 low. The S+P 500 and Nasdaq 100 remain above their late-2018 lows.
Meanwhile, the Transports remain in a more bearish setup with an ultimate downside target of ~6,500. They are getting within striking distance of that major objective.
At the same time, all the indexes are approaching their monthly HLS levels…
In the primary indexes, the focus remains on the weekly trend pattern. The weekly trends have turned neutral twice in the DJIA, ESM & NQM (while turning down in the DJTA). It would now take weekly closes below 24,681/DJIA, 2884/ESM & 8140/NQM to reverse these lagging/confirming indicators down and to signal that a larger-magnitude decline is unfolding… it would also usher in the likely time for an initial multi-week bottom and subsequent rebound.
The last week has also driven home a couple other points in another key stock complex (that is usually discussed elsewhere)…
— A sinking tide crashes all boats (as opposed to a rising tide lifting all boats).
— The XAU is an index of stocks, more than it is an index of gold or silver.
The XAU fulfilled multi-year upside objectives in late-Feb and, along with Silver, has been forecast to plunge into March 13/16. That was powerfully reinforced by corresponding daily sell signals in a number of gold/silver stocks on March 5/6, described in last week’s Weekly Re-Lay publications.
Along with Silver, those stocks rebounded right to their descending daily 21 Low MACs without being able to neutralize their daily downtrends.
Combined with a couple other key indicators, that triggered a new signal that projected a plunge into mid-March. Those stocks, as well as Silver and the XAU, plummeted into today – reaching 1 – 2 month downside targets where initial lows took hold.”
Stocks fulfilling 3 – 5 week sell signals triggered on Feb. 7 – 14; fulfilling projected overall plunge into late-March ’20 – when a multi-month bottom is expected.
These damaging signals reinforce the 40-Year Cycle and 2-Year Cycle outlook for an overall drop into March 23, 2020 – the precise time that equities bottomed in 2018 AND 1980.
Are Gold/Silver Stocks Poised to Bottom by/on March 16?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.