Stocks Complete Danger Period #1
09/28/16 Weekly Re-Lay Alert – Danger Period #2 On Deck:
“Stock Indices are consolidating below their mid-August highs and are expected to see a larger decline in Oct./Nov. 2016 – when Danger Period #2 takes hold. This continues to unfold similar to the May–Aug. 2015 decline – the last phase of boththe 32–33 Week & 66-Week Cycles – in which an initial 1–2 month drop was seen… but then dramatically overshadowed by a larger 2–4 month decline…
All three Indices dropped right to their weekly support levels – to begin this week – as they simultaneously tested & held daily HLS levels, stretching to extreme support on a daily basis & normal support on an intra-week basis.
Combined with the daily cycle lows – on Sept. 26/27th – and the weekly trend patterns (unable to reverse down after neutralizing uptrends multiple times), this sets the stage for a brief bounce into next week… and is corroborated by diverse cycles.
Daily & weekly cycles converge on Oct. 3–7th & could time a retest of the mid-Aug. highs. The weekly trend patterns – in several Indices – are beginning to signal the same thing…
One of the more intriguing weekly cycles is the one that has overlapped the 32–33 Week Cycle, timing intervening peaks almost as consistently. It is a 24-Week Cycle that has been most consistent in the S+P 500.
Beginning with a secondary high on Dec. 1–5, ’14), this has unfolded in a high–high (May 18–22, ’15)–high (Nov. 2–6, ’15)–high (Apr. 18–22, ’16) Cycle Progression that next comes into play on Oct. 3–7, 2016… and projects a multi-month high.
A peak next week (which could be a lower peak in some Indices, a higher peak in some and/or an equivalent peak – or double top – in others) would also complete a 49-day/7-week low (June 27)–high (Aug. 15)–high (Oct. 3, 2016) Cycle Progression (that next comes into play on Nov. 21, 2016)… [See complete 9/28/16 Weekly Re-Lay Alert for expanded analysis]”
Stock Indices poised for secondary high on Oct. 3–7th, before ensuing 1–2 month decline becomes most likely. Nov. 21 (–25), 2016 is ensuing phase of ~7-week high-high Cycle Progression that could time subsequent peak. Focus remains on late-2016 when 15–18 month topping process (from May/June 2015) is expected to shift into sustained downtrend… reinforced by monthly 21 MARCs (see Tech Tip Reference Library for indicator description) – that pinpoint Dec. 2016–March 2017 as precarious period.