Stocks Poised to Set Mid-January Lows & Spur Multi-Week Rally; Project Feb ’25 Sell-off.
01/13/25 – “Stock indexes dropped sharply after bouncing precisely into January 6th, fulfilling upside price AND timing projections in the DJTA, Russell 2000 and S+P Midcap 400. The DJIA, S+P 500 NQ-100 had already completed their rebounds on Dec. 26th and set lower highs on January 6th.
That was the ideal time for a secondary high and ushered in the second Danger Zone since the late-November ’24 cycle peak. (The first was from early-December into December 19/20th.)
Initially, this Danger Zone stretches into/through the current week even though these overall declines could last, on balance, into… March/April ’25.
The DJIA, S+P 500 & Russell 2000 turned their weekly trends down on January 10th, corroborating the outlook for an initial spike low in the current 1 – 2 week period (as part of a larger overall decline).
The NQ-100 reinforced all this last week, testing intermediate targets & resistance levels at 21,866 – 21,940/NQH on January 6th and then generating an outside-week/2 Close Reversal Combo lower. The DJIA, S+P 500, S+P 400 & Russell 2000 acted similarly, generating outside-week/2 Close Reversals lower.
On a near-term basis, stocks were expected to drop into this week and into mid-month… A low could stretch into January 17/21st but the price action of the next 2 days needs to corroborate that…
In other indexes, 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 are adding corroboration to major peaks projected for late-Nov/early-Dec ’24 with the S+P Midcap, DJTA & Russell 2000 peaking on November 25th. Those highs were set in precise lockstep with repeatedly-published cycles and major upside price targets – setting what was projected to be 3 – 6 month (or longer-lasting) peaks in late-Nov. ’24. They are projected to undergo sharp declines in 1Q 2025… and potentially longer.
January 6th ushered in the time for another sell-off into mid-January – a likely precursor to future declines in February/March 2025. A low in mid-January would likely trigger a multi-week rally while projecting cycle focus to the middle part of March ’25 for a future low.
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 frame when a future sharp sell-off is likely… after a rebound from mid-January cycle lows (see publications for details).
How Do November 25th Highs Corroborate Outlook for 2025 Sell-off?
How Would Late-Jan/Early-Feb High Reinforce 1Q ‘25 Outlook?
Will Stock Indexes Fulfill Downside Objectives in March/April 2025?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.