Stocks Completing Early-Feb. Sell Signals; Portend Initial Lows March 16.
03/14/20 Weekly Re-Lay: “Stock Indices plunged again after bouncing in early-March but peaking right at monthly resistance. Monday’s action broke below the late-Feb. low, signaling the projected March decline was underway. Recent action has fulfilled the 40-Year Cycle parallel while spurring drops to decisive support…
Stock Indices spiked down into mid-March, fulfilling their intra-month downtrends as the Nasdaq 100 plummeted… This also fulfilled the FAANG parallel to 4Q ’18 and 40-Year Cycle outlook for sharp sell-offs that mimic what transpired in Feb./March 1980…
All three indexes also spiked down to their weekly HLS levels – the extreme downside targets for this past week – and held. And, on a daily basis, the indexes plunged to their daily HLS levels on Thursday – also warning of an imminent (1 – 2 week) bottom in the mid-month period (March 13/16).
Perhaps the most important event was the primary indexes completing a full weekly trend reversal this past week. That is a lagging/confirming indicator… When stocks triggered their ‘Perfect Storm’ of sell signals in early-to-mid-Feb., it projected a 3 – 5 week drop with one primary objective – getting the weekly trend patterns to this decisive week. That has now been achieved.
The significance of this is that the weekly trends signal [see current publications for ongoing analysis]”
Stocks fulfilling 3 – 5 week sell signals triggered on Feb. 7 – 14; completing projected overall plunge into late-March ’20 – when a multi-month bottom is expected. Daily/weekly extreme indicators project initial bottom on March 16.
40-Year Cycle and 2-Year Cycle could still extend drop in DJIA into March 23, 2020 – the precise time that index bottomed in 2018 AND 1980.
How Likely is Divergent Bottom?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.