Stocks Fulfill July 20–23rd Cycle High
07/25/15 Weekly Re-Lay: “Stock Indices have given more negative signs with the DJIA turning its weekly trend down while triggering a very negative weekly 21 MAC signal. 1–6 month traders should have sold Indices when the DJIA was trading at 17,950–18,288 & be holding these short positions…
Another One Bites the Dust!
Stock Indices keep the parade of reversing weekly trends marching on! After the NYSE reversed its weekly trend down (a lagging indicator that usually triggers an intermediate low in the ensuing weeks), it provided a textbook rebound right to 2–4 week resistance.
As that was unfolding, the DJIA retested its weekly 21 High MAC (while remaining below its weekly 21 High MARC, thereby keeping that channel’s trend heading down) and promptly provided an outside-week/2 Close/2-Step Reversal down… WHILE ALSO turning its weekly trend down AND closing below its descending weekly 21 MAC.
That is the pattern that has been discussed and anticipated for several weeks and which is the final confirmation to 17-Year Cycle expectations for a ~20% drop between late-April–late-Sept. 2015. That action also validated daily cycles that project a sharper drop from July 20–23rd into Aug. 7/10th. A quick drop to ~16,975/DJIA (3 of last 4 weekly HLSs) and to ~16,803/DJIA (monthly HLS) is possible in the coming week.
To reiterate, just as in 2000/2001, every moderate decline is met with an opposing rally and every moderate rally is met with a new sell-off (eventually, the sell-offs began to spike to new lows even though those drops quickly spurred new buying). That pattern is still expected to extend through much of 2015.
From a global perspective, the Shanghai Composite – after losing 32+% in ~4 weeks – rebounded to retest its previous low (support turned into resistance) just above 4100. If that resistance contains the current rebound, the Shanghai could quickly plummet to ~3075…
1–3 & 3–6 month traders should be on the short side of Stock Indices – from when the DJIA was trading at 17,950 up to 18,288/DJIA. Hold these short positions until a weekly close above 18,174/DJIA.” TRADING INVOLVES SUBSTANTIAL RISK!
Stock Indices Confirm Projected July 20–23rd Peak; Sharp Drop Expected Into/In August! Shanghai Composite Poised to Plummet Below 3100!!