Stocks Triggering New Sell Signals: Indexes Likely to Drop to New Lows… and Extend Sell-off into late-May. What are Weekly Trends Revealing?
Stocks Triggering New Sell Signals: Indexes Likely to Drop to New Lows… and Extend Sell-off into late-May. What are Weekly Trends Revealing?
05/18/19 Weekly Re-Lay – “Stock Indices completed an initial sell-off, spiking down to weekly and then HLS levels while testing 1 – 2 month support levels. That quickly spurred a rebound that has taken them to 3 – 5 day resistance levels – turning focus to May 20/21 as a decisive period for the near-term trend (and to determine if a multi-month peak is yet in place). The weekly trend patterns, in the DJIA & ESM, identify the entire coming week as a decisive one…
Stock Indices spiked lower on Monday with the DJTA, S+P 500, Nasdaq-100, Major Market Index and other indexes attacking their monthly HLS levels (extreme downside targets for May 2019) and initially bottoming. That coincided with a test of the March 2019 lows in many Indexes (like 25,208/DJIA) – the lowest levels of the past 12 – 13 weeks – and projected a multi-day bounce…
A bounce did take hold, but the DJIA, S+P 500 and others still generated a second neutral signal against their prevailing weekly uptrends. The Nasdaq 100 triggered an initial neutral signal. It would take weekly closes below 25,222/DJIA & 2799/ESM to reverse those trends down.
Monday’s action fulfilled the weekly & daily sell signals from late-April and ushered in an initial bounce…The indexes remain in daily & intra-month downtrends and just rebounded back to retest their descending daily 21 Low MACs. Barring a reversal higher on Monday, those price indicators would project a drop back to (or below) recent lows in the coming week(s).”
May 20 action is poised to reinforce late-April/early-May sell signals and trigger new wave down. That is occurring as the indexes test key resistance levels, where a rebound peak was/is most likely. They are confirming the dangerous period forecast for May – Aug. 2019 and could see selling into late-May before becoming oversold. The weekly trends are expected to turn down in the coming weeks and would confirm what is expected for May – August 2019!
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.