Stock Indices Poised for Intervening Peak

Stock Indices Poised for Intervening Peak; 
Sharp Decline Should Resume in late-July…
Hang Seng & Shanghai Composite Indices Leading! 

07/15/15 Weekly Re-Lay Alert: “Stock Indices rallied into mid-month after bottoming 2 days early (in DJIA & S+P) but in synch with opposing daily cycles in the NQ-100 & NYSE.

The Nasdaq 100 & NYSE bottomed on July 7–9th** – 30 degrees from their June 9th lows and 60 degrees from their May 7th lows – as the NQU was testing 2-month support & the monthly trend point at 4328/NQU.  (Those cycle sequences should produce subsequent lows around August 7th.)

They did that in the week after the NYSE tested & held its weekly HLS while turning its weekly trend down… signals that often prompt a 1–2 week reactiverebound before a more sustained decline.

As a result of these reversals, a contrasting spike up to the weekly LHRs became the likely short-term scenario, requiring rallies to 10,974/NYSE as well as 18,018/DJIA2108.25/ESU and 4558/NQU.  All of these have been attacked – the extreme upside targets for the current week.  Friday’s close should be at or below these levels in order to validate them.

Considering that these rallies ALSO have each of the Indices reaching their monthly resistance levels – during mid-month – it reinforces that another 1–2 week or longer peak could take hold now.

[**These lows took hold as another global Index – the Hang Seng Index – accelerated into an initial low, spiking to new intra-year lows while hitting the 20% decline threshold, having shed that amount since April 28th.  As already discussed, the Shanghai Composite also plummeted into a July 8th low, losing over 32% from its high of 4 weeks earlier.]

1–3 & 3–6 month traders can continue getting on the short side of Stock Indices – when the DJIA is trading at 17,950 up to 18,288/DJIA.  Hold until a weekly close above 18,351/DJIA.

2–4 week traders should…”  TRADING INVOLVES SUBSTANTIAL RISK!

17-Year Cycle of Stock Corrections & Capitulation Phase of 40-Year Cycle of Stock-flation Projecting Sharp Drop into August/Sept. 2015!  Mid-Dec. 2015Should Usher in More Troubling Bearish Phase.