Stocks Setting Up Sell Signal
08/20/16 Weekly Re-Lay:
“The Indices are exiting the latest phase of the 32–33 Week & 66-Week Cycle highs – and entering a 1–2 month & 2–4 month period when overlapping ‘Danger Periods’ are expected (similar to May–Aug. ’15)…
Stock Indices are steadily moving toward the decisive period in late-2016, when a 15–18 month topping process is expected to yield to a more convincing & sustained bearish period. That analysis – discussed since early-2015 – is derived from the synergy of many factors…
Many of them are longer-term (1–3 years up to ~40 years), ranging from the culmination of a 2nd, 40-Year Cycle of Inflationary Stock Advances (the first lasted 40.5 years, from July 1932–Jan. 1973 and the second lasted 40.5 years from Dec. 1974–June 2015) – that would likely take several years to correct & include a 1–2 year topping process – down to the monthly 21 MAC that would have a better chance of turning down in late-2016.
It also stems from the many parallels to 2000–2002 (in and out of the markets) that prompted expectations for an analogous period in the Dows (DJIA & DJTA) in 2015–2016 as well as the uncanny 32–33 Week & 66-Week Cycles – that would again converge on August 1–12th.
That should usher in a 1–2 month Danger Period (based on the 32–33 Week Cycle) and a 2–4 month Danger Period (based on the ~66-Week Cycle). Similar to the period between late-April & late-August 2015 – the last time both cycles converged – August 1–12th is expected to lead to an initial drop (into late-Sept./early-Oct.) and also to a larger-drop (lasting into late-Nov. – when multiple cycles portend a multi-month low).” [Stock Indices reinforce analysis for short-term drop on August 15th–26th, as first phase of initial overall (projected) drop from mid-August into late-September. That would fulfill the FIRST ‘Danger Period’ in late-2016… BUT… Another should soon follow. See complete 8/20/16 Weekly Re-Lay Alert for expanded analysis.]