Stocks Poised for Larger Sell-offs; Transports Continue to Lead Way Lower!
02/22/20 Weekly Re-Lay: “Stock Indices continue to validate the 2-Year Cycle – first fulfilling the potential for a late-Jan. sell-off, then fulfilling expectations for an early-Feb. low and reversal higher, and most recently producing a subsequent 2 – 3 week rally…
Stock Indices continue to evolve through a topping process with weaker indexes, like the DJTA and Russell 2000, turning down in late-Jan. and remaining in a corrective phase ever since.
The Transports are still likely/expected to remain below the mid-Jan. peaks (than in Jan.) – reinforcing the 11 – 12 week cycle that helped pinpoint the Jan. 17 – 24 peaks in many stocks.
The stronger indexes – DJIA, S+P 500, NQ-100 – reached a new set of highs in the second half of Feb. – perpetuating the 2-Year Cycle while creating divergence among the indexes.
Those indexes followed the 2-Year Cycle almost to a tee, undergoing sharp sell-offs in late-Jan. and bottoming in early-Feb. (after testing weekly HLS levels) and then entering 2 – 3 week rallies. That entire sequence closely mimicked what transpired in late-Jan. – late-Feb. 2018.
Most indexes sold off last week as the DJTA twice neutralized its daily uptrend but could not turn that trend down. It tested and held weekly support and its daily 21 Low MAC, setting the stage for a rally to new intra-month highs. That unfolded and ushered in a pivotal 1 – 2 day period for Feb. 24/25.
Daily trend patterns, daily 21 MACs and 21 MARCs, intra-month trend patterns and short-term cycles reinforce that potential with the likelihood for at least new spike lows to begin the coming week… as the S+P 500 and Nasdaq 100 neutralized their daily uptrends twice after triggering outside-day reversals mid-week – projecting a sharp multi-day sell-off.”
Stocks poised for larger sell-off in line with 2-Year Cycle & over-arching 40-Year Cycles – poised to fulfill ominous 4-Shadow Signal triggered in late-Jan. That warned that a much larger drop is on the horizon as DJTA weekly cycles and sell signals project a second plunge into weekly cycle lows.
What Do Feb. 19 Sell Signals Project for Coming Week?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.