Stocks Validating January 22/23rd Cycle Highs; Project Major Feb/March ‘25 Sell-off!
01/23/25 – “Stock Indices remain in the midst of a multi-week reactive rally after turning their weekly trends down on January 10th. They spiked lower last week, fulfilling the convergence of daily & weekly cycles, weekly trend signals, and related 4-Shadow signals that all projected a multi-week low during the week of January 13 – 17, ‘25.
On January 10, the DJIA, S+P 500 & Russell 2000 (as well as the DJ Composite Average that combines Industrial, Transport & Utility Averages) turned their weekly trends down – a sign of culmination on a near-term basis and confirmation on a broader basis.
The weekly trend reversal indicator usually times an initial multi-week low in the week that follows that signal trigger. (The DJTA did the same thing on December 20th – ushering in its own multi-week reactive rally.) That reinforced several other timing indicators – all focused on last week for the timing of an initial low and a likely reactive bounce.
In the case of the DJIA, a rebound peak on January 21 – 24th would fulfill an ongoing ~7-week high-high-high-(high) Cycle Progression (even though it has stretched a day beyond related daily cycles).
Meanwhile, the S+P Midcap is projecting a rebound peak on January 22/23rd that would fulfill a 58 – 59 day high (June 3) – high (July 31) – high (Sept 27) – high (Nov 25) – (high; Jan 22/23) Cycle Progression. That cycle was instrumental in projecting the October/November ’24 surge and a multi-month cycle peak for November 22/25th. The Russell 2000 was also focused on January 22/23rd.
If a secondary peak is set during the current week, it would likely trigger a decline into [reserved for subscribers]… Not surprisingly, the DJTA has just tested its weekly 21 High MAC while rebounding 50% and attacking a multi-week range-trading target – all near 16,700.
It would take daily closes below [reserved for subscribers] to give the first signs that a secondary top is taking hold.” TRADING INVOLVES SUBSTANTIAL RISK
Stock Indexes are adding corroboration to major peaks projected for late-Nov/early-Dec ’24 – set while fulfilling repeatedly-published cycles and major upside price targets. That ushered in what was projected to be 3 – 6 month (or longer-lasting) peaks in late-Nov. ’24… and to ultimately lead to major 2025 plunges.
Subsequent highs – particularly in the S+P Midcap 400 – are expected around January 22nd and should prepare the way for sharper declines in February ’25, a possible March Meltdown… and confirmation of a broader stock market shift. That is in sync with weekly trend and multi-month 4-Shadow signals triggered on January 10/13th.
The 17-Year Cycle projected 4Q 2024 as the most likely time for a major peak in equities – and 2025 as the time for the next major decline. In line with that, the DJIA is already revealing parallels to late-2007/early-2008. Cycles and timing indicators are already identifying the next likely time frame when a future sharp sell-off is likely… in February/March ‘25 (see publications for details).
Will January 22/23rd (Divergent) Highs Reinforce Outlook for ‘March Meltdown’?
How Would Late-Jan/Early-Feb Peak Reinforce 1Q ‘25 Bearish Outlook?
What Do Weekly Trend & 4-Shadow Signals Bode for February/March ‘25?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.