Stocks Bracing for Late-Feb. Sell-off II; 40-Year Cycle Concurs on Likely Plunge into Feb. 26 – 28!
02/13/20 INSIIDE Track Intra-Month Update: “Stock Indexes remain in positive territory and are fulfilling their intra-month uptrend signals by rallying into mid-Feb… Those intra-month uptrends usher in the potential for an Intra-Month Inverted V pattern in February (initial low at start of month, peak at mid-month, and new lows at end of month).
On a broader scale, recent action continues to fulfill and validate 2-Year Cycle projections. Late-Jan./early-Feb. ‘20 was expected to be a close parallel to Jan./Feb. 2018 – when stocks suffered a quick, sharp ~2-week drop in late-Jan. and bottomed in the opening days of Feb. ’18…
So, what should follow?
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.”
Stocks are bracing for sharper sell-off in late-Feb. (beginning after Feb. 17), reinforced by the over-arching 40-Year Cycle. An ominous 4-Shadow Signal concurs and warns that a much larger drop is on the horizon as DJTA weekly cycles and sell signals project plunge into Feb. 26 – 28.
What Do 2-Year & 40-Year Cycles Portend for Rest of 2020?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.