Stocks Fulfill Intra-Month V Reversals Higher; Could Repeat Pattern in June.
05/27/20 Weekly Re-Lay Alert: “Stock Indices are fulfilling the latest phases of their ~2-month advances from the March 23 cycle low – triggered by the bullish daily trend and daily 21 MAC signals generated on May 14/15. They have rallied to new 1 – 2 month highs, fulfilling the weekly trend patterns in the DJIA, ESM & NQM and the intra-month trend signals generated just after the May 14 lows.
This has also allowed them to fulfill/complete Intra-Month V Reversals – signaled when equities dropped into mid-month and did not turn their short-term trends negative. That pattern projected strength into late-month corroborating what the weekly trend patterns were already showing. All of that has been fulfilled.
This action is completing the wave structure that was associated with that weekly trend pattern, anticipating a pullback into the middle part of May and then a subsequent rally to new intra-month highs (into late-May) before a sell-off in June…
And that coincides with an ongoing ~30-day/degree cycle that was/is expected to repeat in late-May/early-June. … before a second decline takes them to new intra-month lows (in June) – leading into multi-month cycle lows. (Price objectives for the ensuing declines – into early-June and then into the second half of June – should become clearer once a top is signaled.)”
Stocks fulfilling projected rallies into late-May while completing Intra-Month V Reversals higher. A similar pattern could emerge in June when a slightly larger correction is forecast. 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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