Stocks Continue Rally…
02/27/16 Weekly Re-Lay: “Stock Indices have rallied after many of them set new lows in February – fulfilling monthly cycles lows in January & weekly cycle lows inFebruary… Stock Indices continue to rebound – on balance – since reaching extreme support on Jan. 20th. Some Indices retested those lows in early-Feb. – but remained in congestion – while others (like the DJ Transports) have moved on a more steady incline. The Jan. 2016 low reinforced a decisive monthly Cycle Progression – that projects a subsequent monthly low for June 2016.
The January lows set the stage for another series of divergent lows, with many Indices spiking to slight new lows in early-Feb. – when weekly cycles projected a bottom. Corroborating that, several Indices – like the S+P – also completed a 2nd consecutive decline of 14 weeks (May 18–Aug. 24 & Nov. 2–6th to Feb. 8–12th) – a textbook example of wave equivalency.
And those additional declines – into early-Feb. – allowed Indices like the S+P & Nasdaq 100 to complete a ‘5th’ wave decline in their overall drops from Nov./Dec. 2015. Whereas the bounces in Dec. & Jan. were of similar degree (the ‘2’ & ‘4’ wave rebounds within that drop), the current rebound is of one higher degree – correcting the overall drop instead of just one leg of it.”