September Stock Sell-off III
09/03/16 Weekly Re-Lay:
“Stock Indices are vacillating near their highs, with only a couple Indices giving confirmed signs of an intermediate top as the DJIA & NYSE reversed their daily trends down. (They also closed lower on the month, even as most of the other Indices managed to close slightly higher.)
That usually leads to a brief rebound, which will often neutralize the new daily downtrend (twice) before turning back down and entering a ‘c’ or ‘3’ wave decline. So, the DJIA & NYSE could rebound into Sept. 6th or 7th without turning their daily trends back up – and without turning the new intra-month trends up – and then resume the decline that has just begun.
Corroborating that, the S+P 500 & Nasdaq 100 dropped far enough to neutralize their daily uptrend (but NOT reverse it down) and are attempting to bounce. That could create a retest of the highs, which would fulfill their daily trend pattern.
So, all of these Indices were/are poised for a brief bounce to begin the month of September – even though those rallies would have different significance in the wave structure of each Index.
In the Nasdaq, the daily LHR and daily 21 MARCs reinforce that potential, with the coming days setting the stage for a new 2–4 week top (like that seen on August 15th) and the onset of another 1–2 week sell-off. In all of the Indices, a 36-day low (June 27)–low (Aug. 2)–high (Sept. 7th) Cycle Progression corroborates that…
An intra-month peak is most likely on Sept. 6th or 7th.
1–3 month & 3–6 month traders & investors can be selling Stock Indices at these levels and averaging into those short positions up to the mid-Aug. highs. Risk/exit on [See complete 9/03/16 Weekly Re-Lay for comprehensive trading strategy.]. TRADING INVOLVES SUBSTANTIAL RISK.