Stocks “Casting Shadows Ahead’: Indexes Revealing Initial Weakness… What Does This Mean for Aug. ’19 Danger Period?
05/25/19 Weekly Re-Lay – “Stock Indices have consolidated since completing an initial sell-off in line with weekly and then monthly HLS levels while testing 1 – 2 month support levels. Some have since dropped to new lows while others have remained in a trading range.
The weekly trend patterns are the key to what to expect between now and Aug. 2019. The Transports just turned their weekly trend down, providing the first validation to the 2 – 3 month outlook…
Stock Indices are in the midst of a very decisive two-week period that could have far-reaching implications. With Friday’s close, all three indexes (and many others) have now neutralized their weekly uptrends at least twice (DJIA & S+P 500 have done it three times). It would take weekly closes below 25,222/DJIA, 2799/ESM & 7268/NQM to reverse those trends down).
That, if it occurs, would be a key confirmation that a multi-month top is in place and it would powerfully corroborate the outlook for an overall correction into Aug./Sept. 2019.
At least one index, the one that so frequently leads turning points of this magnitude, has just done that. The DJ Transports turned their weekly trend down on May 24.
That validates the outlook for a sharp correction from late-April – when the DJTA triggered a 2 – 3 week sell signal – into late-June, that would fulfill weekly cycles (including geometric 13-week/90-degree & 26-week/180-degree cycles) and a 50% correction in time (120 days up/60 days down).
That weekly trend signal is usually followed by a reactive, 1 – 3 week bounce – although an additional spike low is possible before that rebound.”
Stocks casting shadows ahead, with May ’19 sell-off presaging what is expected in Aug. ‘19. The Nasdaq 100 is increasing the likelihood a new decline will last into (at least) May 31, in order to turn the weekly trend down and complete an initial decline and the latest phase of a multi-month topping process. All the indexes are confirming the dangerous period forecast for May – Aug. 2019… and more specifically for Aug. ’19!. What could be seen in June 2019??
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.