Stock Indices Confirm Sell Signals

Stock Indices Confirm Sell Signals;
Oct. 28th Close Projects Sharp Drop!
Early-Nov. Projected Plummet on Track.

10/29/16 Weekly Re-Lay: 

Stock Indices sold off into the weekly close after spending two weeks trying to recoup the losses of the three days following October 7th, when Danger Period #2 kicked in.

As a result, the ESZ, SPX, OEX & SPY (ETF) DID – yet again – trigger outside-week/2 Close Reversals lower.  In all but the futures, that is the 4thoccurrence of that pattern since the mid-August peak.  In addition, the S+P 500 Cash Index produced its lowest weekly close since July 1st.

More & more, this resembles July/Aug. 2015  – when 75% of the overall, 3–4 month decline occurred during the final 1–2 weeks.  The DJIA & ESZ are corroborating that by providing textbook signs of ‘rolling over to the downside’ on a multi-month basis.  They are trading inside their weekly 21 MACs as those channels flatten.  The ESZ has repeatedly tested & held the weekly 21 High MAC.

It would take weekly closes below xx,xxx/DJIA & xxxx.xx/ESZ [reserved for subscribers only] to close below those channels & signal a breakdown (and project acceleration lower).  That dovetails with the most important downside confirmation – weekly trend reversals lower (needing weekly closes below xx,xxx/DJIA & xxxx.xx/ESZ [reserved for subscribers only]).  The NYSE just completed a related weekly trend reversal down…

Stock Indices spiked to new (NQZ) or intra-week highs on Oct. 25th – coming within 1 day (normal margin of error) of perpetuating the 12 trading-day high-high-high-(high) Cycle Progression that projects a drop into the next phase of that cycle – on Nov. 10/11th  (the same time a ~30-degree high-high-low-low-low Cycle Progression recurs).

One key (necessary) confirming signal would come if/when the NQ-100 gives a daily close below 4786/NQZ & reverses its daily trend down.  The daily trends in the DJIA & ESZ are already projecting drops to new 2–3 month lows.

1–3 month & 3–6 month traders & investors should have sold Stock Indices on Aug. 29–Sept. 7th (~18,400–18,550/DJIA & ~2161–2182/ESZ) and be holding these shorts.  Risk/exit [reserved for subscribers only].”  TRADING INVOLVES SUBSTANTIAL RISK!

Stock Indices entering acceleration phase when a sharp drop is a high probability.  Oct. 31–Nov. 10/11th is an extremely vulnerable period, based on a synergistic combination of cycles & technical indicators.  That is when Danger Period #2 is expected to intensify and spur a breakdown of several critical levels.  Extreme downside targets could be reached in 1–2 weeks.  See Weekly Re-Lay for details.

Also, see 40-Year Cycle Reports for details on outlook from late-2016 into 2017 (and beyond).