Early-Jan. Cycle Low Validated
01/11/17 Weekly Re-Lay Alert:
“Stock Indices completed a 2–3 day pullback – following Friday’s daily trend reversal – spiking lower today (the 3rd day) and then reversing higher. The daily uptrends remained intact during this pullback – confirming their validity and projecting a rally to new highs. With several intra-month trends also up, this should spur further upside into mid-month.
That would also give the DJIA another chance to create a close above 20,000 – a psychological landmark that appears inevitable to be fulfilled.
The potential for some additional upside is corroborated by the DJ Transportation Average which could be, once again, leading the way. The DJTA peaked on Dec. 9th and dropped into Jan. 9th, turning its daily trend down in mid-Dec. and then following-through lower.
It has begun to rebound, neutralizing its daily downtrend while turning its intra-month trend up. That should spur additional upside into mid-month – reinforced by the daily trend pattern and a consistent, intermediate cycle…
The more intriguing aspect of this DJTA action involves the bigger picture. The Transportation Average – after dropping for 14 months & exceeding the 30% decline threshold in early-2016 – has rallied back to its late-2014 peak, spiking above that level but not yet giving a monthly close above that peak (9310/DJTA).
For now, all the trends (except the DJTA, NYSE, MMX & NYSE daily trends) remain up and are likely to spur more upside into mid-January.”
Early-Jan. cycle low spurs new rallies… as long-term cycles enter decisive transition period in Jan.–March 2017. Decennial Cyclereinforces 17-Year Cycle – projecting equity market reversals by the end of 1Q 2017 … and the onset of a very challenging period, at least into March 2018. The Cycle of American Attacks & Date of Aggression Cycles pinpoint specific period for first higher-risk period. See Weekly Re-Lay & INSIIDE Track for additional details.