September Stock Sell-off Looms

September Stock Sell-off Looms;
Mid-August Ushers in Down Cycle…
Sharp Decline on Horizon.

08/24/16 Weekly Re-Lay Alert: 

Stock Indices are showing signs of rolling over to the downside, after trading through another vulnerable transition period.  That was ushered in by the latest phase of the uncanny 32–33 Week Cycle – AND the culmination of an overriding, ~66-Weeklow-low-high-high (early-Aug. ’16Cycle Progression – both peaking on August 1–12th.

As of August 15th, both of these cycles began to turn negative as they enter a likely period for a new intermediate decline.  This is the latest phase of similar action in the 32–33 Week Cycle – which turned negative in Sept. ’14, May ’15 & Dec. ’15… and triggered sharp drops.

However, during the last phase of the 66-Week Cycle, it took a little longer for that decline to unfold… in multiple stages (May–Aug. ’15).  Similar action is expected this time around.

Price action has provided convincing corroboration to these cycles as all the Indices surged to their respective intermediate upside targets – fulfilling the upside expectations stemming from the late-June cycle low.

That is still expected to lead to an initial drop (into late-Sept./early-Oct.) and also to a larger-degree drop (lasting into late-Nov. – when multiple cycles portend a multi-month low).

It would take daily closes below xx,xxx/DJIAxxxx.x/ESU & xxxx/NQU [reserved for subscribers] to give the first signal that a 2–4 week (and potentially a multi-month) peak is taking hold.  That could quickly trigger a drop to… [See complete 8/24/16 Weekly Re-Lay Alert for initial expectations.]