Stocks Poised for New Plunge (into Late-March ’20) After Brief Bounce!
03/02/20 INSIIDE Track Stock Index Update: “On Feb. 12/13, 1980, the DJIA peaked and stocks dropped 8 – 10% into late-Feb. (as part of an overall ~20% decline into late-March ‘80) and initially bottomed.
On Feb. 12/13, 2020, the DJIA peaked and stocks dropped 8 – 10% (or more) into late-Feb. and initially bottomed – a near perfect repeat of the 40-Year Cycle.
The indexes were projected to spur a rally to begin the month of March, partly due to the fulfillment of daily cycle lows on Feb. 28, partly due to the fulfillment of so many of these late-Feb. downside objectives, partly due to the DJIA dropping right to 6 – 12 month support… and partly due to the onset of a new month when a counter-trend 2 – 4 day rebound is most likely. (There were other factors as well.)
That is now taking hold, right on schedule. However, these downtrends would not turn neutral until daily closes above 26,800/DJIA, 3121/ESH & 8925/NQH. The daily trend patterns and the descending daily 21 MACs should play key roles in molding expectations for what to expect after a 2 – 4 day bounce. The first pivotal level of resistance, and 3 – 5 day upside targets, are the monthly resistance levels reprinted above.”
Stocks plummet in lockstep with 2-Year Cycle & over-arching 40-Year Cycles as well as weekly Cycle Progression in Transports & Industrials & ominous 4-Shadow Signal triggered in late-Jan/early-Feb. Perfect Storm of sell signals – triggered on Feb. 7 – 14 – signals ‘significant top’, ‘start of a much larger process’, ‘majority of sell-off to follow’, significantly negative impact on overall market’, leading to ‘intra-year trends down, which would have a longer-reaching impact on the overall equity market’.
These damaging signals reinforce the 40-Year Cycle and 2-Year Cycle outlook for another plunge into late-March 2020 after a brief 2 – 4 day bounce.
What Would March ’20 Stock Market Plunge Mean for 2020 – 2022?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.