Stocks Fulfilling Projected Late-Jan. Sell-off; Is Early-Feb. Low Next?
01/30/20 INSIIDE Track: “Stock Indexes 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, projected a multi-week peak for Jan. 20 – 24, ’20 (and then a subsequent peak in April ‘20 – the same time the 8-Month Cycle projects another important peak in equity markets). That would perpetuate an ~11-Week high-high-high-high-low-low-low-low-high-(high) Cycle Progression .
All of that yearly, monthly & weekly analysis was corroborated by daily price action. The intra-month uptrends projected rallies into (at least) mid-month and up to monthly resistance levels.
Those resistance levels coincided with multiple weekly LHRs (extreme upside weekly targets at 29,211 – 29,255/DJIA, 3304 – 3340/ESH & 9080 – 9156/NQH) and upside wave targets (29,292/DJIA) – increasing the potential for a peak & reversal lower in late-Jan.
That was stressed in last month’s issue, concluding: “In 2019/2020, stocks resumed their uptrend after fulfilling late-Aug. ‘19 cycle lows and could extend a final peak into the second half of January ‘20… before experiencing a quick, sharp drop into early-Feb. ‘20.”
Jan. 22 – 24 validated that analysis and triggered a sequence of 1 – 2 week sell signals…”
Stocks are fulfilling the 2-Year Cycle – projecting a quick, sharp drop into early-Feb. ’20 when another multi-week low is likely. Similar to 2010, 2014, 2016 & 2018, stocks were expected to experience a sharp sell-off in late-Jan. ’20 – which is occurring – leading into an intermediate low in early-Feb. ’20.
What Could Trigger an Early-Feb. Low?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.