Stocks Fulfill Late-Jan Danger Period; Signal Impending Bottom.
01/31/20 INSIIDE Track Stock Index Update: “Stock Indexes sold off again, validating analysis for (at least) an intermediate peak on Jan. 20 – 24 followed by a sharp sell-off in late-Jan./early-Feb…
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 fulfilled the 16-month low-low-low-high-(high) Cycle Progression that timed the late-Sept. ’18 peak and the 2-Year Cycle while mimicking the late-Jan. ’18 peak (and sharp drop into early-Feb. ’18).
These peaks came right after the primary indexes fulfilled intermediate upside objectives – spiking up to the convergence of multiple weekly LHRs and monthly resistance levels like 29,211 – 29,292/DJIA & 3304 – 3340/ESH.
On Jan. 23/24, 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 intact.
That came at the same time the DJIA, ESH & NQH were generating outside-day/2 Close Reversals sell signals. The Transports confirmed that on Jan. 27 with a daily close below 10,991/DJTA – turning their daily trend down and setting the stage for a brief bottom.
That projected an initial low and a reactive 1 – 3 day bounce – before a second decline. Sure enough, the indexes bounced for 2 – 3 days and reversed lower after testing daily 21 MAC levels mid-week. That triggered another sharp drop into month-end.
The primary indexes all reached their weekly HLS levels (extreme weekly downside targets) – reinforcing that an intermediate low [reserved for subscribers]…
Monday’s action should clarify this and potentially identify the more likely path for the next 1 – 2 weeks.”
Stocks are fulfilling the 2-Year Cycle and corresponding late-Jan. Danger Period, when a quick, sharp sell-off has been projected. Similar to 2010, 2014, 2016 & 2018, stocks were projected to experience a sharp sell-off in late-Jan. ’20 leading into an intermediate low in early-Feb. ’20. The weekly HLS levels are reinforcing the likelihood for an impending bottom.
What Would an Early-Feb. Low Mean for April ’20 Cycles?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.