Stocks Signaling Feb. 5/6 High & Brief Correction; Cycles Could Turn Back Up By/On Feb. 12. 1 – 2 Month Upside Targets in Focus.
Stocks Signaling Feb. 5/6 High & Brief Correction; Cycles Could Turn Back Up By/On Feb. 12. 1 – 2 Month Upside Targets in Focus.
02/02/19 Weekly Re-Lay – “Stock Indices fulfilled projections for rallies into Jan. 30 – Feb. 4 and reversed their weekly trends up, confirming that the late-Dec. low should hold for at least 2 – 3 months. A correction into mid– or late-February should soon take hold.,,
Stock Indices remain in intermediate uptrends but are fulfilling the overall outlook for the start of 2019 – a surge from multi-week cycle lows on Dec. 26/27 into multi-week, multi-month & even annual cycle highs on Jan. 30 – Feb. 4.
Corroborating that, the weekly trends reversed to up in all three primary indexes – further confirming the late-Dec. lows and ushering in the time for an initial 2 – 4 week peak (since those weekly trend reversals are a lagging and confirming indicator that often pinpoint the culmination of an initial advance)…
A high on Jan. 30 – Feb. 4 would also perpetuate a ~60-degree high (early-Aug. ‘18) – high (late-Sept./ early-Oct) – high (early-Dec.) – (high; Jan. 30 – Feb. 4) Cycle Progression.
And, in the case of another proxy stock (AAPL), it fulfills a consistent 17-week low-high-high-(high) Cycle Progression and the midpoint of an over-arching 34-week low-high-(high) Cycle Progression.
While they could still spike up to extreme upside price targets (25,324 – 25,462/DJIA, 2755 – 2765/ESH & 7104 – 7173/NQH), equities have now entered a time when a 1 – 3 week correction becomes far more likely.
Stock indexes remain positive and would not turn their daily trends neutral until daily closes below 24,790/DJIA, 2672.5/ESH & 6774/NQH. A final spike high is still possible in the next 1 – 2 days. In contrast, an ensuing low could arrive as early as Feb. 12, perpetuating a 45 – 48-day high (Aug. 7) – high (Sept. 21) – high (Nov. 8) – low (Dec. 26) – (low) Cycle Progression in the S+P 500.”
Stocks fulfilling 1 – 2 month upside objectives, with greatest focus remaining on 7104 – 7173/NQH. Daily cycles and intra-month trend setup could trigger initial high on Feb. 5 – 6. However, short-term cycles could again turn positive as soon as Feb. 12. Daily trend patterns will need to filter expectations for this brief pullback.
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.