Stocks Trigger 3-Step Reversal
10/15/16 Weekly Re-Lay:
“The majority of Stock Indices provided outside-week/2 Close Reversals lower as they entered Danger Period #2. In most S+P-related Indices (and an ETF), this created a rare weekly 3-Step Reversal lower that reinforces analysis for an accelerated move lower in the coming weeks. Traders should have sold Stock Indices near recent highs & be holding DJIA & ESZ short positions…
Stock Indices reinforced expectations for Danger Period #2 – projected to take hold right after Oct. 7th and to spur an accelerated decline… Danger Period #1 was expected to mimic May/June 2015 and trigger an initial drop into Sept. 26/27th. Danger Period #2 was/is expected to be similar to July/Aug. 2015 and trigger a much sharper drop between early-Oct. & late-Nov.
The Indices set divergent peaks on Oct. 3–7, perpetuating a consistent 24-week high-high-high-(high) & a ~7-week low-high-(high) Cycle Progression (that next comes into play on Nov. 21–25, 2016). They subsequently dropped into mid-month with the NQZ reaching its weekly extreme while the DJIA & ESZ fell a little short.
They must reverse their weekly trends down – w/weekly closes below 18,085/DJIA & 2100.25/ESZ – to validate those cycle highs. That potential is lining up perfectly with cycles, since a weekly trend reversal on Oct. 21st would probably usher in an initial low (most likely on xxx. xx–xx)…
Stock Indices spiked higher to begin the week and then dropped sharply, completing outside-week/2 Close Reversals lower in most Indices. That also completed a rare weekly 3-Step Reversal in the SPX, OEX & SPY (S+P ETF), with the ESZ just missing a similar signal.
That reinforces projections for a quick drop into… [See complete 10/15/16 Weekly Re-Lay for expanded analysis]”
Stock Indices trigger weekly 3-Step Reversal lower and projected accelerated drop in coming weeks. S+P 500 remains on track to ultimately reach extreme downside targets – at 2017.25–2026.25/ESZ. Nov. 21–25, 2016 is next phase of ~7-week high-high Cycle Progression… and could be decisive turning point.