Stocks Confirm Projected Sept. 13/16 Peak… DJ Transports Trigger Weekly Sell Signal. NFLX Validating Sept. 9 Sell Signal (‘Canary in Coal Mine’).
09/21/19 Weekly Re-Lay: “Stock Indices rallied into Sept. 13/16 – the projected time for (at least) a 1 – 2 week peak. The DJIA & S+P 500 attacked their July highs while the Nasdaq 100 fell a little short. Potentially more revealing is what has unfolded in the DJ Transportation Average, producing a textbook weekly trend sell signal after testing and holding decisive resistance…
Stock Indices sold off after fulfilling the outlook for a rally from Aug. 26/27 (daily & weekly cycle lows) into Sept. 13/16 (daily cycle highs & the intra-month trend targets). The DJIA & ESZ attacked their late-July/early-Aug. highs (weekly trend objectives), peaking just below those pivotal levels before reversing lower.
The primary indexes surged into mid-month and peaked just below monthly resistance, a textbook setup for an intra-month reversal. At the same time, the Transports added corroboration to their developing top…
The Transports peaked just below critical resistance (11,000 – 11,150/DJTA) and did that while twice neutralizing their prevailing weekly downtrend (they have a different trend structure than the DJIA, ESZ or NQZ). That was the ideal setup for an intermediate peak.
It also adds a level of divergence to the recent peak. As the DJIA & S+P 500 were attacking their July highs – in sync with the positive weekly trend pattern – the DJTA was setting a lower high in line with its negative weekly trend structure. As a result, the Transports are projecting a likely drop back to their late-Aug. low… the Transports did close the week back below their descending weekly 21 High MAC, increasing the likelihood for a drop back to their late-Aug. low…
Stock indexes are mixed… They have confirmed Sept. 13/16 as at least a 1 – 2 week peak, but must turn their daily trends down to elevate that.”
Stock indexes fulfill projected peak for Sept. 13/16. DJ Transports trigger weekly sell signal and project new wave down. NFLX reinforces bearish outlook in stocks (‘canary in coal mine’) – projecting new leg down after Sept. 9 peak and sell signal. (NFLX overall downside target remains MUCH lower!) Sept. 16 – 30 a dangerous period for equity markets!
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.