Stocks Fulfilling Multi-Year Targets
Stocks Fulfilling Multi-Year Targets;
Enter Decennial Danger Period.
Late-July–late-Aug. Sell-off Likely.
07/26/17 Weekly Re-Lay Alert – Parameters & Perimeters:
Many markets are testing the perimeters of significant trading ranges while fulfilling the parameters of diverse projections, indicators and/or cycles.
One example is evident in the key equity markets, two of which (DJIA & SPX) are just now attacking their 1–2 year upside price & wave targets. These objectives combine with corresponding resistance zones to identify the upper perimeter of where Stock Indices could/should reach in 2017.
Stock Indices remain strong as they fulfill those (multiple) upside objectives with the DJIA & SPX reaching 1–2 year upside targets (that were recently corroborated by multiple weekly LHRs) at 21,616–22,030/DJIA & 2465–2531/SPX. As the DJIA is spiking into this range, it is also attacking weekly and monthly resistance.
On a multi-year basis, those targets fulfill the main objectives for the ‘5th’ wave advance (since early-‘16) – creating textbook relationships with the ‘1st’ & ‘3rd’ wave advances of March ‘09–May ‘11 & Oct. ‘11–May ’15. While that doesn’t automatically signal a top, it does fulfill key upside objectives – opening the door for a larger-degree correction.
In addition to wave targets, those ranges also incorporate the projected highs/resistance for 2017 and the yearly extremes (LHR), carrying over from 2016. On a 1–3 month, 3–6 month, 6–12 month & 1–3 year basis – they represent critical upside targets that could easily trigger a multi-month peak.
If a top is set this week, it would allow for a 50% correction (in time) into the Sept. 2017 cycle low (14–15 weeks up/7–7.5 weeks down).
It would, however, take daily closes below 21,562/DJIA, 2462.5/ESU & 5905/NQU to give the first sign of a (1–2 week) top.
Across the Pond, the Stoxx 50 has further validated the analysis discussed in INSIIDE Track and has fallen back to its April 19th (Date of Aggression) low – its 4th wave of lesser degree support and the lowest point of the past 4+ months. That support (~3100) was first set on March 22nd – the first full day of the Month of Aggression.
Having dropped to that support twice in July, the odds are increasing that the Stoxx 50 will break below 3100 in the not-too-distant future (‘double bottoms hold, triples bottoms don’t’).
With three consecutive highs in January – all near 3050 – creating & reinforcing the high of the year-opening range (now ‘resistance turned into support’), that creates a decisive support range at 3050–3100.
From a cycle perspective, the Stoxx 50 peaked in May 2017 – right on schedule. That perpetuated an uncanny ~2-year (23–27 month) low (March ’03)–low (Apr. ’05)–low (March ’07)–low (March ’09)–high (Feb. ’11)–high (May ’13)–high (Apr. ’15)–high (May 2017) Cycle Progression… while rebounding .618 of its 2015/2016 decline.
So, on an upward basis, the Stoxx 50 reached a critical upside perimeter while fulfilling multiple parameters for a 1–2 year (or longer) peak.”
Stock Indices attack upside price targets (at 21,616–22,030/DJIA & 2465–2531/SPX) & fulfill primary objectives for completion of 2009–2017 bull market… as Decennial Danger Period arrives!
Three decisive longer-term cycles are now in negative phases as of late-July 2017 – including the 40-Year Cycle (negative in 3Q/4Q 2017), 17-Year Cycle (downturn in March 2017–Oct. 2019) & 10-Year Decennial Cycle (likely sell-off in July–Nov. 2017, potentially stretching into March 2018). Euro Stoxx 50 Index is concurring. See Weekly Re-Lay & INSIIDE Track for additional details.