Stock ‘Crash Cycles’ Confirmed!
01/16/16 Weekly Re-Lay: “Stock Indices have sold off sharply, fulfilling expectations for a sharp decline to begin right after mid-Dec.… the time when ‘real trouble’ was forecast to hit the markets and usher in a more bearish phase of Crash Cycles leading into 2016. The DJIA turned down on Dec. 17th (exactly when daily cycles in the DJTA projected a final high before a steep sell-off) & suffering its ‘worst year-opening start on record’.
This past week, the Indices dropped to extreme support on Monday and then rebounded into Jan. 13th, reaching daily LHR levels and triggering expectations for another sharp decline – into Jan. 15th or 18th (19th). They gave convincing reversals lower and plummeted into Jan. 15th, with the following events warranting close scrutiny:
— Russell 2K just matched its initial (June–Aug. ’15) decline & attacked its monthly HLS as it perpetuates a 14–15 week Cycle Progression.
— DJTA is attacking the 2015 HLS (6,610) while coming close to matching the magnitude of its Nov. ’14–Aug. ’15 decline (at 6,500/DJTA) as it also nears January’sHLS at 6,364/DJTA. DJ Comp is attacking its monthly HLS (5,458).
— NQH poised to match its July/August price decline (4045/NQH) as it retraces 50% of its intervening rally (14 week rally; 7-week drop).
— All Indices enter the 21st week from the late-Aug. meltdown (impacting weekly 21 MARCs) AND 3rd week of the new year (first 3 weeks comprise overall opening range of 2016).
— Indices sold off into mid-month & into latest phase of ~30-degree low-low-low & ~60-degree high-low-low Cycle Progression.
…Stock Indices are reaching another extreme as they enter a decisive 1–2 day period. All of the just-cited factors pinpoint a do-or-die week ahead.
3–6 month & 6–12 month traders/investors should have re-entered the short side of the Indices (except NQ) on Oct. 29/30–Nov. 6th (at ~17,780–17,977/DJIA, ~2076–2102.75/ESH, ~10,538–10,641/NYSE) and should now risk [reserved for subscribers]…” TRADING INVOLVES SUBSTANTIAL RISK.
Stock Indices have fulfilled much of what was projected for the first danger period of 2016 Crash Cycles. – from mid-Dec. ’15 into late-Jan. ’16. Early-Nov. sell signals remain in force and have been powerfully validated by projected sharp drop into late-Jan./early-Feb. (reinforcing likelihood for subsequent periods – of intensifying trouble – with the next phase expected in 2Q 2016). Several Indices within striking distance of testing critical downside objectives. Jan. 19–22nd = Do-or-Die, based on cycles & price extremes!