Stock Indices Enter Cycle High

04/29/15 INSIIDE Track: “Stock Indices”

04/29/15 – Stock Indices are in the process of transitioning into a new 40-Year Cycle, having just completed a 40-Year Cycle of Stock-flation – an inflationary advance in equity prices from Dec. 1974 into Dec. 2014.  It is likely to take some time before the masses recognize this transition taking place.

This has been a replay – ’resembling’ what was seen between the early-1930’s and early-1970’s – a similar 40-Year advance.  And, the 1932/1933 economic low (1933 was trough of Great Depression) arrived exactly 40 years from the Panic of 1893.

So far, at least one primary Index has set its high (to date) in Nov. 2014 (DJ Transports), Dec. 2014 (DJ Composite & Major Market), Jan. 2015 (DJ Utilities) & Mar. 2015 (DJ Industrials).  Meanwhile, the Nasdaq 100 could be the last in this series, based on analysis discussed in Oct. 2014…

32–33 Week Cycle

It is a critical time to review a cycle that has impacted the Nasdaq 100 for over a decade.  The core of this cycle is an 11-Week & 22–23 Week Cycle.  However, the variation that is the focus of this discussion is a 32–33 Week Cycle.

That cycle was discussed extensively in 2012 and then again in 2014 – when it was forecasting an intermediate peak for Sept. 15–19, 2014.  At the time, it combined with a unique ~90-degree sequence** of cycles to project a quick, sharp drop into mid-Oct. 2014.

That decline unfolded and the Indices entered a volatile time when each decline was met with a quick reversal higher and each new rally soon gave way to another multi-week drop…

The significance of the Sept. 15–19th cycle convergence was what it portended for the future, particularly since it had followed the textbook Cycle Progression sequence and inverted to a high.  In other words, it perpetuated a 32–33 week low-low-low-low-(high) Cycle Progression.  That initiated a phase when subsequent highs should be seen at 32–33 week intervals.

As illustrated in the accompanying chart (on page 6; from Sept. 2014) – it turned focus to April 2015.  More precisely, that 32–33 week cycle would next come into play during the weeks of April 27—May 1st and May 4–8th, 2015.

A high at that time would extend it to a 32–33 week low-low-low-low-high-(high) Cycle Progression… and even project an ensuing peak (more likely to be a lower peak) for Dec. 2015.  [If Dec. 2015 does turn out to be a lower peak, the real danger period would come after that time.]”

— Stocks Poised for Late-April/early-May Peak.
— May–August 2015 = Initial Bearish Period (10-20% Declines?)
— Real Danger Period Arrives After Dec. 2015!!