Stocks Set Stage for 2–4 Week Top

Stocks Set Stage for 2–4 Week Top;
Drop into late-June Remains Likely.
Watch June 23rd ‘Brexit’ Vote.

06/08/16 Weekly Re-Lay Alert: 

Stock Indices remain positive on a 2–3 month basis and most have turned back to positive on a 2–4 week basis.  They fulfilled projections for an intermediate decline from April 19th/20th into May 19th/20th and have rebounded since.  

On a near-term basis, this rebound has extended beyond the ideal time for the next (2–4 week) peak – except in the Nasdaq 100.  With the Indices rallying beyond June 3rd/6th, they have failed to corroborate the ~90-degree cycle sequence (that next comes into play on July 19th/20th) – so that potential remains unconfirmed.

The short-term trends would not turn back to neutral until daily closes below 17,838/DJIA2097.25/ESU & 4491/NQU.

On a slightly larger-degree (intermediate) basis, two key timing factors still argue for a peak (at least a 2–4 week peak and more likely a 1–2 month peak) in the first half of June.  These are not quite as precise, but are more consistent…

The first is the convergence of intermediate cycles in the Russell 2000 (and some related Indices)…

The second is the weekly LHR indicator.  The Indices tested & held this level (extreme intra-week upside objective) on May 27th, projecting an ensuing intermediate peak within 1–3 weeks…

A ~5-month cycle still portends an important low in late-June (–early-July; ~5 months from the early-Feb. lows in some Indices), with intervening action needing to clarify the degree of that bottom.”  

 Equity markets have rebounded from the May 16–20th cycle low but are now entering the time when a quick 2–3 week drop is needed, to complete this overall down cycle (from April 19th/20th).  If a low is seen in late-June, it would increase the synergy of cycles converging in late-Nov. 2016 – the next phase of both a 5-month & 10-month low-low cycle.

The June 23rd UK vote on Brexit could factor into this expected drop… and cycle low.  Watch July 19th/20th for next important peak.  See the June 2016 INSIIDE Track for update on the uncanny 8-Year Cycle and why it portends another British Pound pummeling in 2016… most likely between June–Sept. 2016.  Could this factor into analysis for global equity markets to suffer a sharper drop in late-2016?