Stocks Fulfilling Weekly Trend & 4-Shadow Signals; Portend Impending Peaks & Feb ‘25 Sell-offs.
01/21/25 – “Stock indexes spiked lower last week, fulfilling the convergence of daily & weekly cycles, weekly trend signals and related 4-Shadow signals that all projected a multi-week low during the week of January 13 – 17, ‘25.
Last week’s lows also fulfilled intra-month trend patterns, daily cycles & 4th wave of lesser degree support levels. They did that as the DJIA attacked its 1 – 2 month downside target near 41,800, a level that has been in focus since early-December:
12-14-24 – “The DJIA topped while fulfilling a ~4-week (25 – 28 day) low-low-low-(high) and a ~16-week low-low-(high) Cycle Progression and was projected to see an initial drop into Dec 16 – 19th… as part of a multi-week drop to 41,600 – 41,800/DJIA.”
The DJIA fulfilled those early-Dec cycle highs, fulfilled the initial drop into December 19th, and just completed the overall multi-week drop to ~41,800/DJIA – ushering in the time for a 1 – 3 week bounce from its January 13th low. The weekly trend pattern – in three primary indexes – signaled the same thing on January 10th, projecting an imminent spike low followed by a reactive 1 – 3 week rally.
Corroborating last week’s cycle and indicator lows, the NQ-100 bottomed right at monthly support and the S+P 500 fulfilled a pair of equidistant downside wave objectives, creating additional examples of wave symmetry within that overall correction…
In December, the S+P 500’s initial decline was a plunge of ~300.0/ES points. After the subsequent rebound into Dec 26th, the S+P 500 began a second decline from its 6107/ESH peak – with an initial (minimum) downside target around 5807/ESH (~300.0/ES points).
A quick drop of ~233/ES points ensued, lasting from Dec 27th into January 2nd. A second related decline began on January 6th – when a trio of indexes projected a secondary peak – with an initial (minimum) downside target around 5835/ESH (~233 points).
Those downside objectives were reinforced by the July ’24 peak (resistance turned into support) at ~5840/ESH and the Oct ’24 low (4th wave of lesser degree support) at ~5800/ESH.
The S+P 500 spiked down to 5809/ESH on January 13th, the precise time it completed successive declines on an intermediate (11 trading days each) and short-term (7 days each) basis… fulfilling wave symmetry on multiple levels of time AND price. That signaled the culmination of its latest sell-off.
The DJIA, S+P Midcap, Russell 2000 & DJTA also bottomed at their October ’24 lows – pivotal (initial) 2 – 3 month support – as the Midcap reached its 10% decline threshold.
That spurred reactive rallies that could peak at any time…
In the case of the DJIA, a rebound peak on January 21st (today) would fulfill an ongoing ~7-week high-high-high-(high) Cycle Progression and a related 22 – 24 day low-high-high-high-high-high-(
The S+P Midcap is similar – projecting a rebound peak on January 21 – 23rd that would fulfill a 58 – 59 day high (June 3) – high (July 31) – high (Sept 27) – high (Nov 25) – (high; Jan 22/23) Cycle Progression that is reinforced by shorter-term 18 trading-day & 9 trading-day cycles. That cycle was instrumental in projecting the October/November ’24 surge and a multi-month cycle peak for November 22/25th.
If a secondary peak is set during the current week, it would likely trigger a decline into [reserved for subscribers]… this correction could stretch into March/April ‘25 – the convergence of multiple cycles & Cycle Progressions including an 18/19-month low-low-(??) Cycle Progression, a 2-Year Cycle (DJIA peaked in late-Nov ’22 and sold off into March ’23) and an annual cycle that timed intra-year lows in 2020, 2023 & 2024.” TRADING INVOLVES SUBSTANTIAL RISK
Stock Indexes are adding corroboration to major peaks projected for late-Nov/early-Dec ’24 with the S+P Midcap, DJTA & Russell 2000 peaking on November 25th. Those highs were set while fulfilling repeatedly-published cycles and major upside price targets – ushering in what was projected to be 3 – 6 month (or longer-lasting) peaks in late-Nov. ’24.
Subsequent highs – particularly in the S+P Midcap 400 – are expected around January 22nd and should prepare the way for sharper declines in February/March ’25… and potentially beyond. That is in sync with weekly trend and multi-month 4-Shadow signals triggered on January 10/13th.
The 17-Year Cycle remains focused on 4Q 2024 as the most likely time for a major peak in equities. In line with that, the DJIA is already revealing parallels to late-2007/early-2008. 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).
How Do November 25th Highs Corroborate Outlook for 2025 Sell-off?
How Would Late-Jan/Early-Feb High Reinforce 1Q ‘25 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.