Stocks Drop Right to Support

07/02/16 Weekly Re-Lay: 

“Stock Indices completed their intermediate sell-offs, dropping from mid-April (& early-June) into late-June – the convergence of weekly & monthly cycle lows.  They spiked down to weekly support – to begin the week – increasing the potential for an intermediate low, reinforced by the weekly trend patterns… 

Stock Indices spiked lower into late-June – extending the declines from mid-April & entering the 2-week period when an intermediate low was most likely.  They began the week with another day of sharp downside – taking the DJIA, NQU & DJTA to their respective weekly support levels (17,073/DJIA, 4167/NQU & 7,036–7,088/DJTA) and setting the stage for an intra-week low.

At the same time, the DJIA & NQU attacked their ascending weekly 21 Low MACs – support that had risen up to meet price action, increasing the potential for a near-term bottom.  Most important, the Indices reinforced the possibility for a bottom based on their weekly trend patterns.

This past week’s lows validated & perpetuated the ~5-month & ~10-month low-low cycles that have been the focus of analysis for the past 3–4 months… and which project future focus to Nov. 2016.  In the interim, however, a lot of volatility is expected.

For starters, the first half of July had/has the potential for a strong rebound once cycle lows had taken hold (which appears to be the case)… and then be followed by [reserved for subscribers only]…

Stock Indices spiked down to weekly support to begin the week, fulfilling late-June cycle lows and spurring a new rally.   [Stock Indices provide textbook technical & cyclic pattern for an intermediate low – powerfully validating projections for the next important low to occur in late-June.  With equities closely adhering to the outlook for 1Q & 2Q 2016, it adds credibility to expectations for 3Q & 4Q 2016 – when things should get more ‘exciting’.  See related analysis for what this portends for late-2016.]