Stocks Poised to Peak…
Stocks Poised to Peak…
Bounce into March 9/12 Fulfilled;
New Decline Projected After March 12.
03/10/18 Weekly Re-Lay: Stock Indices are rallying back to recent (late-Feb.) highs, in fulfillment of their daily trend patterns. The Nasdaq 100 is spiking to new highs, fulfilling its weekly trend pattern…
Stock Indices are fulfilling their daily & weekly trend patterns following their initial sell-offs into early-Feb. They have not signaled anything larger than a 1 – 2 month peak and remain above the lows set on Feb. 9 – the completion of the first 40-day period (of testing) of the new year.
This topic has been discussed many times over the past two decades with the primary focus on the days surrounding Feb. 9 and then March 21 (also the vernal equinox and the start of the Natural Year) – the first two 40-day periods of each new calendar year.
Those periods provide successive ‘periods of testing’ or preparation for what is expected to follow.
In this case, the weekly trend patterns and a very consistent weekly cycle – most salient in the DJ Transportation Average – provided the rationale for an initial low, corroborating that more general intra-year cycle. The DJTA fulfilled a ~12-week high-low-low-(low) Cycle Progression that projects a future (more significant) low in early-May 2018. Since then, the weekly trend pattern has projected a retest of the late-Jan. high, in at least one index.
The NQ-100 was the likely candidate and has just fulfilled that… On a slightly lesser basis, the late-Feb./early-March sell-off produced a similar pattern – but on a daily trend basis. That projected a rally back to (at least) the Feb. 26/27 high – which is close to being fulfilled in multiple indexes.
1–5 Day Outlook:
Stock Indices entered this past week with the daily trend patterns projecting a rally back to the late-Feb. highs. That was quickly corroborated by the daily 21 MARCs which were already showing a potentially bullish period for March 5 – 8 (when those replacement calculators would plummet, producing a bullish effect on the corresponding 21 MACs).
Coinciding with that, the intra-month trends were poised to turn up on March 6 even as DJIA cycles projected a rally into March 9/12 (see 3/07 Alert). This has now taken place with March 12 pinpointing a decisive date… it could usher in a new wave down.”
Stock Indexes are fulfilling projected rallies into March 9/12… and back up to late-Feb. highs. The S+P 500 is in the textbook setup to trigger a daily trend sell signal on March 12. That coincides with daily cycles in the DJIA and the likelihood for another drop – ideally lasting into March 26 – 30.
See Weekly Re-Lay & INSIIDE Track for additional details.