Stocks Remain in 2 – 3 Month Uptrends. Transports Prep for 2 – 4 Week Correction… Project Feb. 19 – 22 (Divergent?) Peak.
Stocks Remain in 2 – 3 Month Uptrends. Transports Prep for 2 – 4 Week Correction… Project Feb. 19 – 22 (Divergent?) Peak.
02/16/19 Weekly Re-Lay: “Stock Indices remain in intermediate uptrends, with two of three indexes fulfilling their 1 – 2 month upside targets as the third is within striking distance (7104 – 7173/NQH). That range remains decisive and also includes the Dec. 3 high at 7139/NQH.
In all three indexes, those early-Dec. peaks – the perpetuation of 5- & 10-month cycles that should hold for at least two months – are the equivalent of a ‘4th wave of lesser degree’ resistance, even though a textbook 5-wave decline did not unfold. That ‘high before the final decline’ (also 25,980/DJIA & 2819/ ESH) is pivotal resistance and a rebound target.
Another factor coming back in focus is a recurring ~12-week cycle in the DJTA. That cycle was discussed numerous times last year & has created contrasting highs & lows on a staggered basis. The latest phase of an 11 – 12 week high-high-high-(high) Cycle Progression is Feb. 19 – March 1 and should produce another 2 – 4 week (or longer) peak.
At the same time, a related but partially contrasting 78 – 83 day low (Apr. 6) – low (Jun. 28) – high (Sept. 14) – high (Dec. 3) – high (Feb. 19 – 22) Cycle Progression projects an intermediate peak for the coming week. The high that immediately preceded that sequence was on Jan. 16, 80 days before the April 6 low. A high on Feb. 15 – 20 would also complete a 50% rebound in time.”
Stocks remain positive but have reached 1 – 2 month upside targets (from the Dec. 26 low). DJTA – which often leads other indexes by days or weeks – is projecting a Feb. 19 – 22 peak by a 2 – 4 week correction. This remains in the broader context of equities projected to set 3 – 6 month or 6 – 12 month lows in late-2018 and then see a strong, multi-month rally into May 2019 (weekly cycles pinpoint late-April – early-May ‘19 as ideal period for a peak) – reinforcing 40-Year Cycle parallels.
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.