Stocks Resume Plunges; Remain On Track for Drop into ~March 23, ’20!
03/11/20 Weekly Re-Lay Alert – The 40-Year Cycle Marches On: “Stock Indices have plunged into March ’20 with the DJIA shedding over 20% – a precise fulfillment of the 40-Year Cycle.
In 1980, the DJIA peaked on Feb. 12/13 and then suffered a sharp 8 – 10% drop into late-Feb. and an overall 20% plunge into March 1980.
Due to an ominous collision of bearish cycles and indicators (a Perfect Storm of sell signals described in early-Feb.), Feb./March 2020 was projected to see something similar – with a myriad of factors projecting a final peak on Feb. 12 – 17 followed by a sharp drop into Feb. 26 – 28 and an overall plunge into late-March.
The DJIA peaked on Feb. 12/13, 2020 and then suffered a sharp 8 – 10% drop into late-Feb. and an overall 20% plunge into March 2020. Déjà vu??
Another parallel – and one of the converging ‘fronts’ in the early-Feb. Perfect Storm of negative signals – was the uncanny similarity to late-Sept. 2018 with regard to the FAANG stocks artificially supporting the rest of the market. In 4Q ’18, that led to a quick, sharp 20% plunge.
In 1Q ’20, the FAANG stocks were again artificially supporting the rest of the market and that led to a quick, sharp 20% plunge.
Déjà vu… all over again??
All of this has reached fruition as the markets plunged into March 9, 2020 – exactly 11 years (another uncanny cycle tied to recurring solar activity) from the March 6/9, 2009 bottom…. However, the markets have not produced any signals of a reversal higher yet so these downtrends need to be respected since additional selling is still a high probability.
There is a BIG difference between fulfilling primary downside objectives… and actually signaling a low (since markets can always extend declines and head for a secondary set of downside targets).
The indexes remain negative and would not even turn neutral – on a 1 – 2 week basis – until daily closes above 25,560/DJIA, 2910/ESM & 8420/NQM. So, the prevailing bias is still to the downside… Either this is just a (major) reactionary correction or it is the start of something significantly larger. The weekly trends should help in clarifying that.
On a near-term basis, stock indices continue to swing wildly with the S+P & Nasdaq 100 futures (ESM & NQM) and the DJTA trading in roughly the same ranges for the past three days, whipping back and forth in those ranges… another spike low is likely.”
Stocks fulfilling late-Jan/early-Feb. Perfect Storm of intermediate sell signals – triggered on Feb. 7 – 14 – that project overall plunge into late-March ’20 – when a multi-month bottom is expected.
These damaging signals reinforce the 40-Year Cycle and 2-Year Cycle outlook for another plunge into March 23, 2020 – the precise time that equities bottomed in 2018 AND 1980.
Why is March 23, ’20 So Significant?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.