Stocks Enter Corrective Phase

05/07/16 Weekly Re-Lay:  

“Stock Indices are showing preliminary signs of reversing lower – led by the Nasdaq 100 & tech stocks – initially validating analysis for a late-April–late-June decline.  The NQM peaked on April 19, 2016 – the latest phase of a 19–20 week low-high-high-high-(high) Cycle Progression dating back to the mid-Oct. 2014 spike low – while holding weekly 21 MARC resistance.

The DJIA is developing a synergistic web of key support and/or extreme downside objectives for the coming week(s)…This range comes into play at 17,076–17,176/DJIA and includes the monthly HLS, weekly HLS (2), weekly 21 Low MARC & weekly 8 Low MARC.  When a market develops a tight range of objectives & support like that, after turning its near-term trends down, and in line with cycle expectations – it demands close scrutiny!

As stated before, the April 19^th/20^th highs fulfilled many diverse cycles & wave objectives and were/are expected to spur an initial drop into May 16–20^th.  The NQ-100 triggered a weekly 2 Close Reversal sell signal on April 22^nd – also projecting a few weeks of ensuing downside.  After two weeks of downside follow-through, a brief bounce could unfold.”