Stocks Enter Danger Period #2

Stocks Enter Danger Period #2;
Sharp Multi-Week Drop Expected…
2017.25–2026.25/ESZ = Objective;

10/08/16 Weekly Re-Lay: 

Stock Indices bounced into daily cycles on Oct. 6/7th… and are poised to head lower as they enter Danger Period #2.  Several Indices remain in daily downtrends after trying to neutralize them for the past 10 days.  That could trigger an accelerated move lower.  Traders should have sold Stock Indices near recent highs & be holding DJIA & ESZ short positions…

Stock Indices set divergent peaks on Oct. 3–7, perpetuating a consistent 24-week high-high-high-(high) Cycle Progressionas well as a ~7-week low-high-(high) Cycle Progression (that next comes into play on Nov. 21–25, 2016)…

The S&P has expanded its level of extreme intra-week support – combined with the weekly 21 Low AMAC – to 2092.75–2103.75/ESZ.  If broken in the coming week, it would turn the weekly trend down, trigger a bearish 21 MAC signal and a bearish HLS signal… all at once.

The key level – for all of October – comes into play at 2017.25/ESZ, the monthly HLS for October (extreme intra-month downside target) and a range-projection target.  If a serious decline emerges, as I suspect it will, that would be an extremeobjective for the coming weeks – closely coinciding with the high of the 2016 year-opening range (2019.25/ESZ) and the next two weekly 21 Low MARCs (2007 & 2026.5/ESZ).

Stock Indices consolidated this past week, allowing the NQZ to retest its high while the DJTA spiked to a new multi-month peak.  It would take daily closes below 18,116/DJIA2136.0/ESZ & 4836/NQZ to turn the intra-month trends down… [See complete 10/08/16 Weekly Re-Lay for expanded analysis]


Stock Indices confirming secondary high and poised for multi-week drop into Nov. 2016.  S+P 500 projected to ultimately reach extreme downside targets – at 2017.25–2026.25/ESZ – before bottom is likely.  Nov. 21 (–25), 2016 is next phase of ~7-week high-high Cycle Progression that could time subsequent peak.

Overall focus remains on late-2016 when 15–18 month topping process (from May/June 2015) is expected to shift into sustained downtrend… reinforced by monthly 21 MARCs (see Tech Tip Reference Library for indicator description) – that pinpoint Dec. 2016–March 2017 as transitional period, when sustained downturn is most likely.