S+P 500 Completes Wave Structure

02/20/16 Weekly Re-Lay:  “Stock Indices retested their lows – allowing key Indexes to fulfill expectations for lows in February – and then rebounded as the DJTA continued on its cyclic course for a rally into Feb. 18^th/19^th.  The daily trend patterns could allow for some add’l upside in the coming week…

Stock Indices have rebounded since reaching extreme support on Jan. 20^th.  The Jan. 2016 low reinforced a decisive monthly Cycle Progression – that projects a subsequent monthly low for June 2016.  It set the stage for another set of divergent lows, with many Indices spiking to slight new lows in Feb. – when weekly cycles projected a bottom. 

Once again, this repeats the patterns seen in Nov./Dec. ’14 (highs), Jan./Feb. ’15 (lows), Apr./ May ’15 (highs), Aug./Sept. ’15 (lows) & Nov./ Dec. ’15 (highs).  It also allowed global Indices to complete their projected declines into February.

The S+P was a prime example, fulfilling not only many cycles that bottomed in February, but also completing a 2^nd consecutive decline of 14 weeks (May 18—Aug. 24 & Nov. 2–6^th to Feb. 8–12^th).  Several other Indices corroborated.

Price action reinforced that cycle analysis, with so many Indices spiking down to their monthly extremes (HLS) & yearly support in Jan. and then spiking down to weekly extremes & monthly support (as well as daily extremes) in February… a textbook bottoming formation.

While this does NOT imply the bottom will hold long-term, it does indicate that it is a higher-degree bottom than those seen in recent months… and should hold for at least a few weeks (possibly 1–2 months).”

The S+P 500 completed its downside wave structure as it spiked to new lows (but did NOT close below the Jan. 20^th lows) on Feb. 11^th.  That fulfills precisely what was projected for an important bottom, setting stage for a higher-degree rebound.  The next key cycle low is expected in June 2016.