Stocks Peak; Quick Sharp Decline
01/24/15 Weekly Re-Lay: “Stock Indices fulfilled projections for an intermediate bottom on January 15th or 16th (projecting future cycle significance to mid-April) and a subsequent rally into January 23rd or 26th.
That is when a ~30-degree Cycle Progression comes into play in some Indices (~January 26th + or – 1 trading day) and also when a related 18–19 trading-day high-high-high-high-(high) Cycle Progression recurs in the Nasdaq 100 (~January 23rd + or – 1 trading day).
The daily trends, 21 MACs, LHRs & weekly resistance levels helped pinpoint the upside targets for these rebounds – 17,851–17,951/DJIA, 2057.5–2071.75/ESH & 4272–4320/NQH. All three Indices rallied into Jan. 23rd & precisely to these levels, twice neutralizing their daily downtrends in the process.
So far, that is the textbook scenario for a secondary peak and the onset of a new decline…the Indices could set another significant low in mid-February. That would add/perpetuate a corroborating ~60-degree cycle that ALSO comes back into play in mid-April 2015, the primary cycle objective for the first half of 2015.
The midpoint – between the late-Dec. highs and a potential mid-February low – came into play on January 23rd – another reason why a high was likely.” [See Weekly Re-Lay publications for complete analysis, specific trigger points and related trading strategies.]