Stocks Poised for Multi-Month Decline

12/02/15 Weekly Re-Lay Alert: “Stock Indices are setting the stage for a new multi-month decline, expected in the early months of 2016 (but beginning in Dec. ’15).  They are in a decisive & pivotal 2–3 week period that includes the overlap of the 32–33 Week Cycle on Dec. 7–18^th (that precisely timed the mid-Sept. ’14 & late-April/early-May ’15 peaks and was forecast to trigger a new decline after mid-Dec. 2015) and the series of 14–15 week cycles that has governed the SP 500… and which came back into play on Nov. 30–Dec. 11^th.

The DJ Transports – which continue to lead the transition into a multi-year bear market – just turned their daily trend back down.  They are the first to do so (again) and that is the first signal that an intermediate peak is taking hold.  Several other Indices (among them, the DJIA & SP 500) remain below their Nov. 2^nd highs – peaks that were set during a previous multi-week cycle high.

And, as was expected, the Nasdaq 100 has maintained its bullish leadership and spiked to new highs today.  The first/next sign that any of these Indices are putting in an intermediate high would be their intra-month trends turning down.  That cannot occur until the Dec. 4^th close – and would require a daily close below the Dec. 1^st–3^rd low.

3–6 month & 6–12 month traders/investors should have re-entered the short side of the Indices (except NQZ) on Oct. 29/30–Nov. 6^th and should …”   TRADING INVOLVES SUBSTANTIAL RISK.

As described in the Oct. 2014 Stock-flation & May 2015 Stock-flation II, mid-Dec. 2015 is the most decisive & troubling time for Stock Indices… around the globe.  That is when a more convincing decline has been projected to take hold… and drive equity prices substantially lower.  Specific downside targets are already taking form and will be discussed in forthcoming publications.