40-Year Cycle Stockflation Peaking

January 14, 2015 Eric S. Hadik

Stocks Fulfilling Near-Term (& Long-Term) Cycles;

Mid-Jan. Low Should Spur Bounce into Jan. 23^rd/26^th…

Before Sharp Decline Begins in late-Jan.!

01/14/15 Weekly Re-Lay Alert: “Stock Indices are steadily rolling over – to the downside – after completing a 40-Year Cycle of ‘Stock-flation’ from their Dec. 1974 lows. The DJIA came within a few points of reaching multi-quarter & multi-year extreme upside objectives in late-2014. After last week’s rebound, the Indices projected another quick drop and another test of synergistic support at 17,305–17,359/DJIA, 1988.75–1989.0/ ESH & 4080–4107/NQH.

Some daily & weekly 21 MARCs (17,280/DJIA, 1976.25–1989.75/ESH) provided new reinforcement to these support zones – increasing their strength and their significance. The Indices need to close below these levels in order to exit the current consolidation & trigger acceleration lower…

From a short-term cycle basis, there remains the potential for a new minor low at mid-month – on January 15^th or 16^th…the next important daily cycle is on January 23^rd/26^th and could time a secondary high…

On a longer-term basis, the recent rebound peak in the NYSE set the 5^th successive lower high (July, Sept., late-Nov., late-Dec. and then Jan. 9^th) but that Index needs to set successively lower lows (below 10,457, then 10,363 and ultimately below 9892/NYSE) to confirm the bearishness of that sequence. This latest peak came as the daily 21 MAC & weekly 21 MAC were rolling over to the downside.” [See Weekly Re-Lay publications for complete analysis, specific trigger points and related trading strategies.]

All posts