Stocks Reinforce Outlook for Late-Feb. Sell-off; Transports Project Plunge into Feb. 26 – 28!
02/15/20 Weekly Re-Lay Alert: “Stock Indices rallied into mid-month after initially fulfilling the 2-Year Cycle potential for a late-Jan. sell-off. The Transports have again turned down – before the other indexes – and could lead a second decline into late-Feb. The Russell 2000 is corroborating but the primary indexes would need to quickly join in…
Stock Indices are setting the stage for a multi-week correction with the DJTA and Russell 2000 leading the topping process – reversing lower in late-Jan. and then rebounding (while fulfilling the 2-Year Cycle) in early-Feb. to lower highs.
The primary indexes remain positive and are still going through a topping process. They also suffered quick, sharp corrections in late-Jan. and turned back up on Feb. 3/4 – perpetuating the 2-Year Cycle pattern.
In line with the 4-Shadow signal described in recent weeks, and weekly HLS/LHR indicators, stock indexes have rallied to divergent highs (some lower highs, some equal highs, some higher highs) leading into mid-month.
They bottomed in early-Feb. after testing their weekly HLS levels the previous week. More recently, most indexes surged to their opposing weekly LHR levels (the expectation after an HLS has been tested) on Feb. 3 – 7 – signaling that an intermediate top should take hold in the 1 – 3 weeks that follow.
That was corroborated by intra-month uptrend signals triggered on Feb. 6 – 7 – portending upside into Feb. 13 – 18 (mid-month).
Those intra-month patterns reinforce the potential for an Intra-Month Inverted V pattern (initial low at start of month, peak at mid-month, and new lows at end of month).
And that would fit with DJTA cycles that have been projecting a second sell-off from Feb. 12 – 14 into Feb. 26 – 28. Some of the indexes could stretch a decline into March 2 – 6.
The Transports rebounded to their descending daily 21 High MAC while attacking weekly resistance (11,037 – 11,086/DJTA) after reaching and holding the daily LHR on Feb. 11. Along with a surging daily 21 MARC, that set the stage for a new sell-off from Feb. 13 into late-Feb.”
Stocks are reinforcing projections for sharper sell-off in late-Feb. (beginning on/after Feb. 17), reinforced by the over-arching 40-Year Cycle. An ominous 4-Shadow Signal concurs and warns that a much larger drop is on the horizon as DJTA weekly cycles and sell signals project plunge into Feb. 26 – 28. Daily 21 MARC action is also signaling accelerated decline.
How Deep Could Late-Feb. Sell-off Drop?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.