Stocks Reinforce Sell Signal

Stocks Reinforce Sell Signal;
Aug. 15–22nd = Danger Period!
Overall Drop into Sept. Expected.


08/09/17 Weekly Re-Lay Alert:

Stock Indices are giving additional signs of vulnerability after fulfilling 1–2 year upside objectives that include the optimum wave targets for the completion of a 5-wave advance from the 2009 low.  On an intra-year basis, those objectives included the ideal levels for a 2017 peak.

As the Indices were nearing these targets, weekly extreme upside objectives (LHR) joined in to produce the optimum price range for 1–2 month peaks.  The ESU reached a convergence of weekly LHRs (around 2474.0/ESU) in late-July, while the DJIA just spiked up to a related convergence at 21,927–22,057/DJIA

Two other indexes continue to generate more negative warning signs that should not be ignored…

The Russell 2000 has dropped sharply since July 25th – the latest phase of a 6-week/40–44 day high-high-high-high Cycle Progression.  That cycle projects a drop into early-Sept.  In the interim, an initial drop is expected to take the Russell lower into August 18–22nd, the next phase of a 13–14 day high-high-high-high-(low) Cycle Progression.

A drop into August 18–22nd would also perpetuate an ongoing ~30-degree & ~90-degree cycle that includes the March 16th high, April 17th low, May 17/18th low, June 19th high & July 21st high.

The Russell 2K is trading right near its Dec. ’16 peak (1392) and Jan. ’17 high (1388).  It continues to lose ground, plummeting yesterday & today and closing at 1396 – its lowest close in over two months.  It turned its intra-month trend down in the process.

A weekly close below 1388 would neutralize the intra-year uptrend and produce a higher-magnitude signal of a top.

The DJTA remains negative but still needs a weekly close below 9147 to reverse its weekly trend down and confirm a 1–3 month peak.  (A more convincing sign of a multi-month top would be a weekly close below 8980/DJTA – turning the intra-year trend down.)…

1–4 week traders could have sold [reserved for subscribers only; FUTURES & EQUITY TRADING INVOLVES SUBSTANTIAL RISK]”


Stock Indices reinforcing sell signals & showing additional signs of weakness after fulfilling multi-year upside price targets (at 21,616–22,030/DJIA & 2465–2531/SPX) & the primary wave objectives for completion of 2009–2017 bull market.  These CRITICAL targets were met as cycles turned bearish, in perfect sync with the arrival of the Decennial Danger Period!  Selling could accelerate as August unfolds.

Russell 2000 is leading latest decline & could confirm multi-month peak soon.  Period of Aug. 15–22nd shaping up as increasingly vulnerable when accelerated decline is more likely.  See Weekly Re-Lay & INSIIDE Track for additional details.