Stocks Peaking on January 6th Cycle High; New Sell-off Likely.
01/06/25 – “Stock indexes rebounded into January 3/6th, fulfilling upside projections and reinforcing future cycle highs and lows while potentially completing the rebounds from December 19th. January 6th is the ideal time for a secondary high, based on a myriad of cycles and timing indicators, so the coming days could be revealing.
On Dec 19th, the S+P Midcap 400 (the focus of 4Q ‘24 analysis projecting a top on November 22/25th) plunged right to its range-trading support and 3 – 4 week downside target at 3100 – 3125/IDX, where an initial, multi-week low was most likely. That came after it peaked precisely at its upside wave & range-trading target (~3400/IDX).
That initial low – likely just a stopping point on the way to lower levels – also fulfilled a type of ‘4th wave of lesser degree’ support, dropping to where the low before the previous (culminating) advance had taken hold in late-October. The S+P Midcap was expected to spike a little higher into January 6th and test 3180 – 3200/IDX before a new sell-off.
[Related indexes have pivotal 1 – 2 week resistance at 43,100 – 43,300/DJIA, 2310 – 2320/QRH & 16,200 – 16,400/DJTA – where previous lows and the descending daily 21 Low MACs converged today. Those were/are the ideal ranges for rebound peaks on January 3/6th.]
The NQ-100 also had/has an intriguing synergy of intra-week (Jan 6 – 10th) resistance zones at 21,866 – 21,940/NQH that could, in the ideal scenario, create an intra-week high on January 6th or 7th.
That would create the potential for a weekly (or outside-week) 2 Close Reversal Combo IF the NQ-100 subsequently declined and closes below 21,516/NQH on January 10, 2025. The Weekly Re-Lay will elaborate on other near-term specifics.
The potential for secondary highs during the opening range of January 2025 would add an additional level of corroboration to the broader outlook for late-2024/early-2025…
In late-November, the DJTA also peaked right at its upside range target (~17,600) and then plunged back to its early-October low and range-trading support (~15,600) while turning its weekly trend down. It also closed below its weekly 21 Low MAC… an average that could turn down in the coming week(s).
The DJTA could be revealing some additional clues regarding 1Q ’25… 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 have rebounded after plunging into December 19th – the initial fulfillment of sell signals triggered in late-Nov/early-Dec ’24 after the S+P Midcap, DJTA & Russell 2000 peaked on November 25th, in precise lockstep with repeatedly-published cycles and right at major upside targets. Those indexes likely set 3 – 6 month peaks in late-Nov. and are projected to drop sharply in 1Q 2025.
January 6th ushers in the time for another sell-off – a likely precursor to larger declines in February/March 2025.
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 frames when a second sharp sell-off is likely… in early-2025 (see publications for details).
How Would January 6th High Corroborate Intermediate Outlook?
How Do November 25th Highs Corroborate Outlook for 1Q ’25 Sell-off?
How Do 2025 Cycles of Attacks and Instability Reinforce This Potential?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.