Stocks Confirming Latest Buy Signals; Rally into Late-May Likely.
05/23/20 Weekly Re-Lay: “Stock Indices have rallied since spiking lower into mid-month. The S+P 500 and Nasdaq 100 remain strong and could see additional new rebound highs in the coming days. At the same time, the Transports and others remain in an overall corrective phase ushered in by their April 29 peaks. The May 18 action signaled new strength…
Stock Indices remain mixed with the Industrials, Transports, NYA and Russell 2000 in corrective phases (below their April 29/30 peaks) as the S+P 500 & Nasdaq 100 remain strong and progressively setting new highs – consistent with their weekly uptrends and intermediate outlook.
The May 14 lows arrived two days before weekly cycles bottomed but fulfilled a 52-day low (Jan. 31) – low (Mar. 23) – low (May 14) Cycle Progression – while triggering a daily trend buy signal (projecting rallies to new intra-month highs) in several indexes.
Even the Russell 2000 avoided turning its daily trend down on May 13/14, portending a rally back to its April 29 peak. So, price action ultimately adjusted cycle expectations and ushered in a 1 – 2 week low a couple days early.
Regardless of the timing, the price and wave outlook has not changed. After this latest pullback was complete, the primary indexes were/are expected to rally to another set of new highs (above their existing April/May highs) and complete an upside wave structure… before entering a slightly larger corrective phase in June…
Stock indexes validated their May 14 daily trend signals, projected to spur rallies to new intra-month highs in the ESM & NQM. Since that also provided a mid-month low, a rally into late-May became more likely after most indexes (including Transports & Russell 2K) turned their intra-month trends up on Monday. All the indexes entered or re-entered daily uptrends – projecting additional upside.”
Stocks confirm intermediate lows and project rallies into late-May. Slightly larger correction expected in June. The stronger indexes remain focused on future phases of the ~40-day cycle (that timed their May 4 lows) – projecting a subsequent, higher low around June 12/15 and likely inverting to ensuing highs around July 22 – 27 and late-Aug./early-Sept.
On a broader basis, stocks are steadily confirming the 40-Year Cycle and 2-Year Cycles that projected plunges into March 23 – 27, 2020 – the precise time the DJIA bottomed in 2018 AND 1980 – and subsequent advances into 3Q ’20 and potentially into 2Q ‘21.
What Does Upward Weekly Trend Signal Indicate for Stocks?
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