Stocks Fulfill Rebound Target
11/04/15 Weekly Re-Lay Alert: “Stock Indices have rebounded with the DJIA, ESZ & NQZ reaching or attacking 3–6 month resistance levels as they catapult higher following the culmination of their various – and synergistic – bearish phases (May–August & late-April–late-Sept). On an intra-year basis, the Indices were expected to see competing multi-month moves with the most bearish phase in the center of 2015.
Once the last of these bearish phases were fulfilled – in late-Sept. – the Indices entered a multi-week advance… that has taken one Index to new highs even as other Indices (NYSE, DJ Transports, DJ Composite, Russell 2000, etc.) have only bounced to 2–3 month highs and/or resistance levels.
The next truly bearish period – and more convincing facet of the larger-degree, 2015/2016 Crash Cycles – is expected to take hold after mid-Dec… when the greatest synergy of weekly & monthly cycles enter another down phase.
As for the near-term, the Indices spiked lower on Monday and then rallied to generate outside-day/2 Close Reversals higher… and extending this rebound. This has allowed the NYSE to reach previously-described levels of 3–6 month resistance at 10,587–10,636 – a pivotal level. That range includes multiple previous lows and a .618 rebound… and the weekly 21 High AMAC.
With all of the Indices rallying for the first three days of the month, tomorrow & Friday could be decisive. If the Indices are going to peak… they should not close above their Nov. 2–4th highs (17,977/DJIA, 2110.25/ESZ, 4729/NQZ, 10,641/NYSE, etc.)
3–6 month & 6–12 month traders/investors should have begun re-entering the short side of the Indices on recent days and can continue selling between…” TRADING INVOLVES SUBSTANTIAL RISK.
Stock Indices remain on track, basis the 2015/2016 Roadmap – completing the ‘strong advance in 4Q 2015’ projected last November. They have reached upside targets and multiple cycles peak in early-Nov., signaling a top. HOWEVER, cycles do not turn decidedly negative until after mid-Dec. 2015. That is when the ‘real trouble’ should emerge and spur a sharp sell-off as part of 2015/2016 Crash Cycles. Mid-Dec. ’15 Ushers in Bearish Cycles.