Stocks Enter Danger Period; Late-Jan./early-Feb Sell-off Projected!
01/27/20 INSIIDE Track Stock Index Update: “Stock Indexes gapped lower today, elevating the magnitude of last week’s highs to (at least) 1 – 2 week peaks and validating the converging of a myriad of significant yearly, monthly & weekly cycles that have been projecting an intermediate (at least) peak for Jan. 20 – 24, followed by a sharp sell-off that should last into early-Feb.
The cycles projecting that late-Jan. peak included the 2-Year Cycle, 40-Year Cycle, 8- and 16-month cycles and an 11 – 12 week cycle (most evident in the DJ Transports since the Jan. ’18 peak).
The Jan. 20 – 24 peak perpetuated an 11 – 12 Week high-high-high-high-low-low-low-low-high-(high) Cycle Progression in the DJ Transports and fulfilled their weekly LHR.
It also fulfilled the 16-month low-low-low-high-(high) Cycle Progression that timed the late-Sept. ’18 peak (and a related 8-month cycle).
It also fulfilled an uncanny 2-Year Cycle while mimicking the late-Jan. ’18 peak (that led to a sharp drop into early-Feb. ’18 low).
And, it is perpetuating the unique similarities to 1978 – 1980, validating the 40-Year Cycle.
The Jan. 16, 2020 INSIIDE Track Stock Index Update reiterated this, explaining why an important top was imminent based on a powerful combination of price, timing & wave objectives being met and related factors projecting a peak and downturn on Jan. 20 – 24:
1-16-20 – “In 1979 (40 years prior), stocks then rallied into early-1980 – spiking to their highest levels in over two years while setting a multi-month peak in the first six weeks of the new year. The DJIA then suffered its sharpest drop in a couple years – a drop that was complete before the end of 1Q 1980.
In 2019, stocks then rallied into early-2020 – rallying to their highest levels in over two years and could set a multi-month peak in the opening weeks of the new year.
Could the DJIA then suffer its sharpest drop in 6 – 12 months and complete it before the end of 1Q 2020?
That possibility is reinforced by several other cycles and indicators…
The 8-Month & 16-Month Cycles project multi-month peaks for late-Jan. 2020.
The 2-Year Cycle projects a late-Jan. ’20 peak followed by a sharp sell-off into Feb. 2 – 13, 2020.
The 11 – 12 Week Cycle, most prominent in the Transports, projects a multi-week peak… just as the indexes are about to enter this cycle peak – they are fulfilling a myriad of upside targets. So, the time is right to begin watching for signs of a developing top…”
And the peak occurred right as the primary indexes fulfilled the upside objectives from their early-month signals – spiking up to the convergence of multiple weekly LHRs and monthly resistance levels like 29,211 – 29,292/DJIA & 3304 – 3340/ESH.
That is what was necessary before an intermediate peak would become more likely. Those were also projected as the most likely ranges at which those intermediate peaks should take hold.
Late last week, the Russell 2000 and NYSE Index (and some key stocks) reversed their daily trends to down – providing the first confirmation that a multi-week top was taking hold in lead indexes.
That came at the same time the DJIA, ESH & NQH were generating outside-day/2 Close Reversals lower. The Transports confirmed that today with a daily close below 10,991/DJTA (turning the daily trend down).
These daily trend signals often lead to an initial low (in the ensuing 1 – 2 days) and a reactive 1 – 3 day bounce – before a second decline…
It would now take daily closes below [reserved for subscribers] for the primary indexes to add to these signals and elevate this sell-off to a higher magnitude. Those levels are significant for multiple reasons, including the intra-month trends, daily 21 MACs and the S+P’s weekly HLS … this weekly extreme target.”
Stocks are validating Danger Period, discussed for the past couple months, when a quick, sharp sell-off has been projected. Stocks fulfilled ongoing forecast for rally into Jan. 20 – 24, ‘20 – the convergence of weekly, monthly & multi-year cycles – and were expected to enter a sharp sell-off in late-Jan./early-Feb. Primary indexes reached upside price objectives for this rally – at 29,211 – 29,292/DJIA & 3307 – 3340/ESH – and have triggered initial reversal signals. Look for confirming action in coming days.
What Would Elevate This Projected Late-Jan./Early-Feb. Sell-Off?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.