September Stock Sell-off IV
09/07/16 Weekly Re-Lay Alert:
“Stock Indices are consolidating near their mid-August highs – set right as the 32–33 Week & 66-Week Cycles were peaking and ushering in what is expected to be a 1–2 month & an overlapping 2–4 ‘Danger Period’ (similar to May–Aug. ’15).
That would also bring them right into late-2016, a decisive period when a 15–18 month topping process (that began in early-2015) is expected to yield to a more convincing & sustained bearish period – derived from the synergy of many factors.
In addition to a myriad of cycles, the monthly 21 MARCs are also corroborating that outlook.
The Indices fulfilled all that was expected out of surges from their late-June cycle low (another validation of the 5- & 10-month cycles that augur a subsequent low in late-November) with the DJIA reaching its upside objective at 18,600–18,700… and attacking it multiple times… with the DJIA & NYSE initially reversing their daily trends down and providing the first short-term sign of a top. They also closed lower on the month.
That daily trend signal usually leads to a brief rebound, which was expected to carry the DJIA & NYSE back up into Sept. 6th or 7th – ideally without turning their daily trends or intra-month trends up.
So far, so good.
Corroborating that, the S+P 500 & Nasdaq 100 dropped far enough to neutralize their daily uptrend (but NOT reverse it down) and were expected to also rally into Sept. 7th – the latest phase of a 36-day low (June 27)–low (Aug. 2)–high (Sept. 7th) Cycle Progression.
In the Nasdaq, the daily LHR and daily 21 MARCs reinforced that potential. And now, the DJIA’s daily 21 MAC & 21 MARCs are validating that scenario.
The DJIA has flattened its 21 MAC as it enters a 5-day (5 trading days) period when the related daily 21 MARCs will undergo a quick jump… making it easier for the corresponding daily 21 MAC to turn down. It did this while rebounding into Sept. 7th and NOT turning its daily or intra-month trend up.
The ideal scenario is for the Indices to turn down tomorrow [See complete 9/07/16 Weekly Re-Lay Alert for further details on expectations for an accelerated sell-off to begin over the next 3–5 days and continue into late-September.].
1–3 month & 3–6 month traders & investors can be selling Stock Indices at these levels and averaging into those short positions up to the mid-Aug. highs. Risk/exit on [See complete 9/07/16 Weekly Re-Lay Alert for comprehensive trading strategy]. TRADING INVOLVES SUBSTANTIAL RISK.