Stocks Fulfilling January 22/23rd Cycle Highs; Project Major Feb ‘25 Sell-off & March Meltdown!
01/25/25 – “Stock indexes are fulfilling their January 10/13th weekly trend and related 4-Shadow signals – both of which projected multi-week lows to take hold and trigger 1 – 3 week reactive rallies. Based on the 4-Shadow signals, a few key indexes could retest their highs while others peak at lower levels…
Stock Indices are in the midst of a multi-week reactive rally in fulfillment of their weekly trend patterns and related 4-Shadow signals triggered on January 10/13th. In both cases, they signal an imminent initial low and the onset of a quick, sharp multi-week reactive rally before a more significant decline takes hold. To review:
“There are two simple techniques that often warn of an impending reversal. Both deal with the final corrective move before the end of a trend. They usually identify the final corrective move – before a final rally (and subsequent high) – while foreshadowing what is likely to come.
For a valid 4-Shadow signal, a market will exceed both the duration and magnitude of the preceding correction – warning of an impending top… This ‘warning sign’ is an omen of a terminating trend.
The ensuing action – after the 4-Shadow signal has been generated – can take three basic and relatively similar forms. The most common involves a market matching and/or barely surpassing previous highs but falling short of the magnitude of previous recent rallies.
While this shows additional strength on a near-term basis, it warns of an impending peak. In all cases, the market experiences a final rally after the 4-Shadow signal is generated.”
This was reinforced by the NQ-100, which was unable to turn its weekly trend down on January 10th. That failure usually results in a rally back to the recent peak. Other indexes corroborated…
The DJIA, S+P Midcap, Russell 2000 & DJTA bottomed at their October ’24 lows – pivotal 2 – 3 month support levels – as the Midcap reached its 10% decline threshold. That reinforced an initial multi-week low was taking hold on ~January 13th.
Stock Indices have rallied after bottoming in line with a myriad of diverse signals & indicators or January 13th… They have made it up to monthly resistance levels – the upside targets for those intra-month uptrends – but would not show any signs of a top until daily closes below [reserved for subscribers]…” TRADING INVOLVES SUBSTANTIAL RISK
Stock Indexes are adding corroboration to major peaks projected for late-Nov ’24 – set on November 22/25th while fulfilling repeatedly-published cycles and major upside price targets. That ushered in what was projected to be 3 – 6 month (or longer-lasting) peaks in late-Nov. ’24… and to ultimately lead to major 2025 plunges.
Subsequent highs – particularly in the S+P Midcap 400 – were expected around January 22nd and should prepare the way for sharper declines in February ’25, a possible March Meltdown… and confirmation of a broader stock market (seismic) shift. That is in sync with weekly trend and multi-month 4-Shadow signals triggered on January 10/13th.
The 17-Year Cycle projected 4Q 2024 as the most likely time for a major peak in equities – and 2025 as the time for the next major decline. In line with that, the DJIA is already revealing eerie parallels to late-2007/early-2008 and providing a roadmap for future expectations. Cycles and timing indicators are already identifying the next likely time frame when a future sharp sell-off is likely… in February/March ‘25 (see publications for details).
Will January 22/23rd (Divergent) Highs Reinforce Outlook for ‘March Meltdown’?
How Would Late-Jan/Early-Feb Peak Reinforce 1Q ‘25 Bearish Outlook?
What Do Weekly Trend & 4-Shadow Signals Bode for February/March ‘25?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.