Stocks Diverging in Short-Term
12/07/16 Weekly Re-Lay Alert:
“Stock Indices are increasing their divergence as the DJIA accelerates to higher highs while the Nasdaq 100 remains below its Nov. 29thhigh (which was below its Oct. 25th high).
The S+P 500 joined the DJIA after it began the month by pulling back to its previous (Aug. & Sept. ’16) highs – resistance turned into support – while only neutralizing its daily uptrend.
It spiked lower to begin this week (the third trading day of the new month) and reversed higher, giving an outside-day/2 Close Reversalhigher and reinvigorating its 2–4 week uptrend.
Another Index of interest is the NYSE – which is spiking above its early-Sept. high while retesting its 6–12 month LLH upside objective (10,898/NYA). The NYSE is doing this while perpetuating a 21–23 week low-low-low-(high) Cycle Progression… and while remaining well below its 2015 peak.
That cycle – corroborated by a 23–24-week low-low-(high) Cycle Progression in some other Indices (DJTA, in particular) – projects an intermediate high for Dec. 5–16th. However, as has repeatedly been the case, that does not guarantee or even project a peak in all the Indices…
A low on Jan. 3–10th would also perpetuate an ~8-week low (Sept. 12)–low (Nov. 9)–low Cycle Progression. So, there are multiple factors projecting the next intermediate low for the first week of Jan.
That is not expected to be as significant as the November cycle low, but could add some clarity as to what to expect leading into April 2017 – the next phase of the 5-month AND 10-month low-low Cycle Progressions that helped time the Jan., June & Nov. 2016 lows…The DJIA remains the most bullish and is nearing its weekly LHR (19,568/DJIA) – the extreme upside target for this week. The S+P is capable of testing its corresponding weekly LHR – at 2242.5/ESH.”
Stock Indices poised for near-term peak as they reinforce projections for early-Jan. 2017 cycle low. That would perpetuate 4-week & 8-week low-low cycles that could subsequently project 4- and/or 8-week rallies. Early-March 2017 could invert & time subsequent peak, close to when 17-Year Cycle portends final peak (March 2017). See Weekly Re-Lay & INSIIDE Track for additional details.