Stock Market in Trouble!
01/09/16 Weekly Re-Lay: “Stock Indices have powerfully validated ongoing analysis – since late-2014 – for a sharp decline immediately after mid-Dec. 2015. That is when the greatest synergy of cycles would be turning down at the same time. 3–6 month & 6–12 month traders should have sold Indices at their early-Nov. highs & be holding these short positions w/gains…
Stock Indices remain below their early-Nov. highs (when sell signals were triggered in all but the NQ) and are closely adhering to expectations for a sharp decline to begin after mid-Dec.… the time when ‘real trouble’ had been forecast to hit the markets. Since late-2014/early-2015, that has been the time pinpointed to usher in the most bearish phase of Crash Cycles leading into 2016.
So far, that is exactly what the Indices have done with the DJIA turning down on Dec. 17th (exactly when daily cycles in the DJTA projected the last high before a steep sell-off) & suffering its ‘worst year-opening start on record’… as trading in China was halted twice, to stem panic-selling.
The DJIA dropped about 6% – or almost 1,100 points – also registering its largest % loss (in a week) since 2011. All in all, that has provided convincing validation to themid-Dec. cycle turn…Overall, this January drop could last into late-Jan/early-Feb.
That would perpetuate a ~4-week cycle while producing an intermediate low ~360 degrees from the early-2015 lows. That also fits with ongoing analysis for China’s Shanghai Composite to see a sharp decline to begin 2016… and potentially bottom in Feb. ’16.
An initial low in late-Jan./early-Feb. 2016 would set the stage for a more significant bottom – when it is already expected – in late-April/early-May 2016… 90 degrees from those lows.” TRADING INVOLVES SUBSTANTIAL RISK.
Stock Indices adding reinforcement to time for ‘real trouble’ – projected to take hold in late-Dec. Initial drop/plummet into late-Jan/early-Feb. projected. Watch late-August lows for bearish confirmation. Late-Jan./early-Feb. low would corroborate late-April/early-May cycles. Stay tuned…