Stocks Attack 20% Decline Threshold

August 26, 2015 Eric S. Hadik

Stocks Attack 20% Decline Threshold;

August 24^th Drop Reaches Extremes…

DJTA & Shanghai Composite Fulfill Targets.

08/26/15 Weekly Re-Lay Alert: Danger Period Confirmed; 20% DJTA Drop Fulfilled: “Monday’s 1,000+ point DJIA drop – and corresponding Dollar plummet/Euro, Yen & Gold surge – powerfully reinforced or fulfilled multiple expectations & analysis, including:

1 – Projection for overall bearish period in Stock Indices – between late-April & late-Sept. 2015 – during which the Indices were expected to lose ~20% in value. The DJ Transports – which peaked in late-Nov. 2014 and have led this entire decline – attacked the 20% threshold on Aug. 24^th.

2 – Danger Period from ~Aug. 18^th into Sept. 18^th…

3 – Sharp Drop in Dollar/Rise in Euro from early-Aug…

4 – Strong Rebound in Gold from late-July into mid-Sept.

5 – China’s Shanghai Composite attacked ~3,000, its 2–3 month downside target and the level of a ~40% decline (just since June 12, 2015). At the same time, the Hang Seng Index – which peaked in late-April – saw its intra-year losses hit ~27% as it dropped to new 2-year lows.

That action created some important corroborating signals, including the DJIA dropping below year-opening lows and spiking below mid-Oct. 2014 lows. However, it also showed signs of many markets reaching an extreme…

Stock Indices have repeatedly & consistently corroborated the outlook for 2015… and the potential for a ~20% decline between late-April–late-Sept. – mimicking a pattern that has been seen at 17-Year intervals, as well as in several intervening years.

After entering the Danger Period – on Aug. 18^th/19^th – the Indices plummeted into Monday (Aug. 24^th) and right to their weekly extreme downside targets (HLSlevels).

A perfect example is in the S+P 500: 1832.75/ESU was weekly HLS; 1831.0/ESU was 8/24/15 spike low. It also tested & held its daily HLS on Aug. 24^th. (The DJIA did the same thing for 3 days straight.)…

All of these Indices also dropped to new intra-year lows, confirming that (at least) a 3–6 month peak is intact…the Indices showed signs of reaching an extreme on Aug. 24^th.”

Stock Indices Reach Extreme Downside Levels; DJ Transports & Shanghai Composite Attack 2015 Downside Objectives. Initial Low Likely.

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