Stocks Fulfill Late-Jan. Sell-off; Prepare for Subsequent (Sharper) Drop.
02/04/20 INSIIDE Track Stock Index Update: “Stock Indexes are reinforcing a divergent top with the Nasdaq 100 – the only index that had not turned its daily trend down (and therefore targeted a rally to new highs before a larger-degree sell-off could take hold) – rallying to new highs and nearing its weekly upside extreme target… and likely represent the ‘final car’ (in a train of cars, as in a wooden rollercoaster) passing the summit and preparing to reverse down. That would usher in the time for all the indices to suffer a sharper decline in the weeks that follow.
At the opposite extreme, the Transports have already dropped over 7% after the majority of indexes fulfilled analysis for an intermediate peak and reversal lower on Jan. 20 – 24 – the latest phase of an 11 – 12 Week high-high-high-high-low-low-low-low-high-(high) Cycle Progression. At that time, they also fulfilled their weekly LHR. The DJTA has a consistent 7 trading-day cycle that could time a lower high on Feb. 7.
In order to maintain the potential for a second sell-off in the coming week(s), the indexes should [reserved for subscribers]”
Stocks are fulfilling the 2-Year Cycle and dropped to weekly extreme downside targets (HLS levels) – reinforcing the likelihood for an intermediate low in the first part of Feb. ’20. Similar to 2018, a brief rally should follow and then lead to another drop in February.
What the 4-Shadow Signal Warns…
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.