Stock Indices Confirming Outlook
11/01/16 Weekly Re-Lay Alert:
“Stock Indices are reinforcing three separate but overlapping expectations. The onset of the third – like a 3rd of 3rd wave in Elliott Wave structure – ushered in the time with the highest probability for an accelerated move down. Those three expectations were/are:
1 – 3–4 month decline from mid-August (immediately following the latest phase of both the 32–33 Week AND the 66-Week Cycle) into late-Nov.
2 – Danger Period #2 to take hold immediately after a bounce into Oct. 3–7th (when diverse daily & weekly cycles projected a secondary and/or divergent peak) and create a more significant drop – the lion’s share of #1 expectation – into late-Nov.
3 – The accelerated phase of Danger Period #2 to take hold after daily cycles converged on Oct. 26th…
A powerful validation – to all three of those – arrived on October 28th when the ESZ, SPX, OEX & SPY (ETF) fulfilled analysis for another outside-week/2 Close Reversal lower.
In all but the futures, that was the 4th occurrence of that pattern since the mid-August peak – creating a rare (something that I cannot remember ever seeing before) 4-Step Reversal lower.
At the same time, the S+P 500 Cash Index produced its lowest weekly close since July 1st… and the NYSE reversed its weekly trend to down.
At the risk of sounding like a broken record, this (expected) 3–4 month decline closely resembles July/ Aug. 2015 (the last time that both the 32–33 Week AND the 66-Week Cycle converged) – when 75% of the overall drop occurred during the final 1–2 weeks of that multi-month decline…
1–3 month & 3–6 month traders & investors should have entered Stock Index short positions at ~18,400–18,550/DJIA & ~2161–2182/ESZ and be holding these shorts. Risk/exit [reserved for subscribers only].” TRADING INVOLVES SUBSTANTIAL RISK!
Stock Indices are reinforcing the overall outlook for a decline from mid-August into late-Nov. 2016, the latest phase of a projected 15–18 month topping process. The final 1–2 weeks of that period (approximately Nov. 16–30th) could produce the lion’s share of that decline, similar to August 2015. Refer to Weekly Re-Lay for continual updates.
Also, see 40-Year Cycle Reports for details on outlook from late-2016 into 2017 (and beyond).