Stocks Signal Vulnerability

Stocks Signal Vulnerability;
Late-July–late-Aug. Sell-off Underway.
Decennial Danger Period Returns!


07/29/17 Weekly Re-Lay:

Stock Indices are giving the first signs of vulnerability after fulfilling multiple upside objectives (the DJIA & SPX just reached their 1–2 year upside price targets & wave projection objectives at 21,616–22,030/DJIA & 2465–2531/ SPX – shortly after the NQ did the same thing).

On a multi-year basis, they represent the main objectives for the ‘5th’ wave advance (that began in early-‘16) – creating textbook relationships with the ‘1st’ & ‘3rd’ wave advances of March ‘09–May ‘11 & Oct. ‘11–May ’15.  The attainment of those levels (although higher spikes are still possible) fulfills decisive upside objectives & opens the door for a larger-degree correction.

That is corroborated by 3–6 month & 6–12 month projected highs & resistance for 2017 and the yearly extremes (LHR), carrying over from 2016.  A convergence of weekly LHRs (weekly extreme upside targets) aligned with these major objectives as the DJIA & SPX were approaching them… fulfilling 1–2 month & 1–4 week objectives.

From a cycle perspective, a peak on July 24–Aug. 4th would allow for a 50% correction (in time) into the Sept. 2017 cycle low (14–15 weeks up/7–7.5 weeks down) – the time when a 5-month low-low cycle recurs, after timing previous lows in Aug. ’15, Jan., June & Nov. ’16 & April 2017.

As the DJIA & S+P were first attacking these objectives, the DJ Transports again led a reversal lower – peaking on July 14th and then plummeting into July 28th, attacking the monthly HLS and neutralizing the intra-year trend again.  More importantly, it twice neutralized its weekly uptrend – setting up the coming week as a decisive one.

The DJTA 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.)”


Stock Indices show first subtle signs of weakness, immediately after attacking multi-year upside price targets (at 21,616–22,030/DJIA & 2465–2531/SPX) & fulfilling primary objectives for completion of 2009–2017 bull market… and in perfect sync with the arrival of the Decennial Danger Period!

Three decisive longer-term cycles are 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).    See Weekly Re-Lay & INSIIDE Track for additional details.