Stocks Prepare for Violent Spike Low

Stocks Prepare for Violent Spike Low;
Ensuing Bounce Should Follow.
Nov. 7–11th = Transitional Period.

11/05/16 INSIIDE Track Intra-month Update: 

Stock Indices are fulfilling analysis for a 6–8 week decline…They are steadily validating expectations for Danger Period #2 – projected to take hold right after Oct. 7th and to spur an accelerated decline (in multiple phases)…

The Oct./Nov. 2016 period was/is expected to be similar to July/Aug. 2015 (the second half of the overall May–August 2015 decline) – and to trigger a much sharper drop during the latter stages of that decline.  The Dec. ’15–Jan./Feb. ’16 decline was similar… and so was the April/May–June ’16 decline.  In each of those instances, more than half of the overall price drop took place in the final week(s)…

The DJIA & S+P 500 just triggered a pair of negative signals, turning their weekly trends down (a lagging/confirming indicator) AND closing below their weekly 21 Low MACs (a decisive, negative channel breakdown signal that is also more of a lagging & confirming indicator).  Those Indices, however, did not yet turn the direction of the weekly 21 MACs down… flattening those channels during the past week.

In the coming week, it would take intra-week drops below 17,471/DJIA & 2033.2/ESZ to turn the direction of those channels down.  Those levels are synergistically significant since they closely coincide with the weekly HLS in the DJIA (17,491) and the monthly HLS in the S+P (2032.75/ESZ) – extreme downside objectives on two different levels.

The weekly trend & weekly 21 MAC signals have dual significance.

On a 1–3 month basis, they confirm what has been anticipated since early-Oct. – a multi-month decline is underway.

On a 1–2 week basis, conversely, they often presage an initial spike low in the ensuing week(s).  But, that is just a measure of timing, not price.  So, that spike low could be a violent one, before a bottom takes hold.  Monday’s action could/should help hone near-term downside objectives.

On a related basis, the S+P (cash) has closed lower for 9 consecutive days, the longest losing streak since 1980.  That has allowed it to fulfill about 75% of the expected 12 trading-day decline…”

Stock Indices projecting violent spike low with VERY tight range of downside targets at 2032.75–2033.25/ESZ.  Remaining days – of latest down cycle – could trigger drop to extreme downside targets… intensifying focus on future period when ‘other shoe’ could drop.  Sharp bounce could intervene.  See Weekly Re-Lay for details.