Transports Reach Multi-Year Downside Target (6,500); NFLX & AMZN Signal Major Lows.

03/20/20 INSIIDE Track Stock Index Update: “Stock Indexes remain weak while repeatedly attacking (and some now spiking below) their extreme downside targets for March 2020… one of those indexes has reached a 1 – 2 year downside target…

The DJTA was projected to set a multi-month peak in Jan. ’20 (the convergence of 16-month, 8-month & 11 – 12 week cycle peaks and the projected ‘B’ wave peak) and then suffer a higher magnitude decline in Feb./March ’20.  That quickly took hold after the Transports peaked in mid-Jan.

The primary downside objective – reiterated in recent months – was the Jan. 2016 low (the 4th wave of lesser degree support) near 6,500/DJTA.  A drop to that level would also entail a 50% retracement of the 2009 – 2018 advance (and a spike below the monthly HLS).  The March 6, 2020 INSIIDE Track Update put it this way:

“The Transports are also validating the monthly 21 MAC structure that has been discussed over the past year – rebounding to the high of that channel for nearly a year as that channel slowly rolled over.  The combination of 16-month, 8-month & 11 – 12 week cycle highs in late-Jan. ’20 – coinciding with the precise time the inversely-correlated monthly 21 MARC began a 5-month advance – ushered in the time when the DJTA had a powerful combination of cycles turning down and ushering in the next major decline in that index (another prime example of cycles & technicals leading a confirming fundamental event – in this case, Covid-19 or coronavirus).

If/when it ultimately breaks below that Dec. ’18 low (8,636/DJTA) – and gives weekly and monthly closes below it – the Transportation Average will usher in (or be in the process of confirming) another bearish phase that should ultimately take it back down toward ~6,500 – its Jan. ’16 low and the 4th wave of lesser degree for the DJTA.”

On March 18, the DJTA spiked down to 6,481 – fulfilling that major downside objective… At the same time, leading stocks (NFLX, AMZN) triggered signs of developing lows.  It might take a few days (or 1 – 2 weeks, in some cases) for other stocks to follow suit… March 23 is the 2-year anniversary of the 2018 DJIA low (close) and could time something similar.

If some stocks and indexes spike to new lows while others hold their recent lows, it would provide the textbook type of divergence often seen at intermediate lows (and perfectly fulfill the 2-Year & 40-Year Cycles that portend multi-month lows between March 23 – March 31).  [see current publications for ongoing analysis & new trading strategy updates]”

Stocks fulfilling Stock Panic Cycles (projected for early-2020, in March 2019) as well as 40-Year Cycle and 2-Year Cycle projecting plunge into March 23, 2020 – the precise time that index bottomed in 2018 AND 1980.  Transports reach downside target as NFLX & AMZN trigger decisive buy signals.  Major indexes also trigger buy signals for multi-month rallies.    

Will Stronger Indexes Make it Back to Highs?

Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.

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