Stocks Signal 1 – 2 Week High; Weekly Trends Project New Advance After Pullback. Daily Cycles Turn Positive on Feb. 12. Watch Daily Trend Action on Feb. 11!
Stocks Signal 1 – 2 Week High; Weekly Trends Project New Advance After Pullback. Daily Cycles Turn Positive on Feb. 12. Watch Daily Trend Action on Feb. 11!
02/09/19 Weekly Re-Lay – “Stock Indices are showing signs of a 1 – 2 week peak after fulfilling the outlook for a multi-week rally into late-Jan./early-Feb…
The weekly trends corroborated that potential, turning up on Feb. 1 (a lagging/confirming indicator that often pinpoints the culmination of an initial advance with a final spike high and reversal lower in the ensuing week) and the intra-month trend setup that projected a couple more days of upside to begin this past week. All of these factors greatly enhanced the likelihood for a peak on Feb. 5 – 6.
Price action needed to corroborate that with the overriding factor being the analysis for a 1 – 2 month rally to extreme upside targets, including 25,324 – 25,462/DJIA. Daily LHRs, Intra-week PLLRs, and other indicators reinforced these targets and were fulfilled on Feb. 5 & 6.
At the same time, the DJIA attacked its weekly 21High MAC at 25,389 – the same indicator at which the Dec. 3 peak was set. The Nasdaq 100 cash index did the exact same thing – attacking its weekly 21 High MAC(7030) while peaking at 7034.
All of that set the stage for a quick drop into Feb. 12, the latest phase of a 45 – 48-day high (Aug. 7) – high (Sept. 21) – high (Nov. 8) – low (Dec. 26) – (low) Cycle Progression in the S+P 500. That has initially taken hold and the daily trends now corroborate…
Stock indexes have initially sold off with the DJIA & NQH twice neutralizing their daily uptrends. They need daily closes below 24,883/DJIA & 6841/NQH to turn the daily trends down and confirm a 1 – 2 week peak.”
Stocks are signaling a near-term pullback after rallying into Feb. 5 – 6. – the latest in a series of expected ascending highs. Daily cycles again turn positive on Feb. 12, so this pullback is likely to be short-lived. Daily trend patterns are now corroborating that and could hone expectations for another daily cycle low in late-Feb. Feb. 11 action and closing price is key and should determine if Feb. 5/6 high can hold for more than a week. Nasdaq 100 remains pivotal index with focus on 1 – 2 month upside target (from the Dec. 26 low) at 7104 – 7173/NQH.
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.