Stocks Perpetuating 2-Year Cycle; Project Plunge After Mid-Feb… into Feb. 26 – 28!

02/08/20 Weekly Re-Lay: “Stock Indices rallied after initially fulfilling the potential for a late-Jan. sell-off.  They are in neutral daily & intra-month trends, leaving open the potential for a second wave down.  The Transports are increasing the chances for a decline into late-Feb.  The indexes would need to turn their intra-month trends down to confirm that scenario…

Stock Indices are passing through a Perfect Storm of critical cycles and indicators… The DJIA, DJCA & S+P 500 retested their highs, creating the potential for double tops.  Meanwhile, the DJTA, Russell 2K (2000 stocks) and NYA (2000 stocks) rebounded to lower highs – reinforcing the monthly & weekly cycle peaks of late-Jan.

(The FAANG stocks plus MSFT are again driving a dramatically-disproportionate percentage of the overall market’s gains.  If they merely returned to an average percentage of gains for their industry, it could have a significant impact on the overall market – similar to what occurred in 4Q ‘18.)…

The DJIA & ESH signals project a rally to monthly resistance… If the Transports can give a daily close below 10,570, it would project a decline into Feb. 26 – 28 (180 degrees/6 months from their Aug. 27/28 low and the culmination of multiple daily high-high-low and low-low-low Cycle Progressions).  That would perpetuate the 12 – 14 week low-low-low-low Cycle Progression that timed the early-Dec. low.”


Stocks are fulfilling the 2-Year Cycle and project a sharper sell-off in late-Feb. (beginning after mid-Feb.).  An ominous 4-Shadow Signal concurs and warns that a much larger sell-off is on the horizon.  DJTA projects plunge into Feb. 26 – 28.    

What Does the 4-Shadow Signal Project?

Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.