S+P 500 Completes Wave Structure
02/20/16 Weekly Re-Lay: “Stock Indices retested their lows – allowing key Indexes to fulfill expectations for lows in February – and then rebounded as the DJTA continued on its cyclic course for a rally into Feb. 18th/19th. The daily trend patterns could allow for some add’l upside in the coming week…
Stock Indices have rebounded since reaching extreme support on Jan. 20th. The Jan. 2016 low reinforced a decisive monthly Cycle Progression – that projects a subsequent monthly low for June 2016. It set the stage for another set of divergent lows, with many Indices spiking to slight new lows in Feb. – when weekly cycles projected a bottom.
Once again, this repeats the patterns seen in Nov./Dec. ’14 (highs), Jan./Feb. ’15 (lows), Apr./ May ’15 (highs), Aug./Sept. ’15 (lows) & Nov./ Dec. ’15 (highs). It also allowed global Indices to complete their projected declines into February.
The S+P was a prime example, fulfilling not only many cycles that bottomed in February, but also completing a 2nd consecutive decline of 14 weeks (May 18—Aug. 24 & Nov. 2–6th to Feb. 8–12th). Several other Indices corroborated.
Price action reinforced that cycle analysis, with so many Indices spiking down to their monthly extremes (HLS) & yearly support in Jan. and then spiking down to weekly extremes & monthly support (as well as daily extremes) in February… a textbook bottoming formation.
While this does NOT imply the bottom will hold long-term, it does indicate that it is a higher-degree bottom than those seen in recent months… and should hold for at least a few weeks (possibly 1–2 months).”
The S+P 500 completed its downside wave structure as it spiked to new lows (but did NOT close below the Jan. 20th lows) on Feb. 11th. That fulfills precisely what was projected for an important bottom, setting stage for a higher-degree rebound. The next key cycle low is expected in June 2016.