Stocks Poised for Multi-Week Top
12/03/16 Weekly Re-Lay:
“Stock Indices are entering the period when a convergence of multi-year cycles turn bearish at the same time. The two largest cycles in this analysis – the 40-Year Cycle & the 17-Year Cycle – will remain bearish into early-2018.
The 40-Year Cycle entered a topping phase in early-2015 and was expected to trigger at least 15–18 months of a developing peak – with violent swings in both directions…During that period, the 17-Year Cycle projected a sharp, ~20% drop in mid-2015 – ideally between late-April & late-Sept. 2015 – but then turned positive until late-2016/early-2017 (mirroring what unfolded in 1998–2000… 17 years ago). It is now poised to turn negative.
Monthly & weekly cycles are corroborating that – at least for 1Q 2017 – and are expected to swing sharply throughout 2017. The Nasdaq 100 is initially validating those expectations, peaking in late-Oct. & late-Nov. – while perpetuating a ~5-week high (Aug. 15)–high (Sept. )–high (Oct. )–high (Nov. 29) Cycle Progression.
That could spur a ~5-week drop into early-Jan. 2017. If so, it would create successive declines of equal duration (10-week decline in Nov.–Feb. ’16, 10-week decline in April–June ‘16 & 10-week decline in Oct. 16–Jan. ’17) while retracing .618 (in time) of its June–Oct. ’16 rally.
A low on Jan. 3–10th would also perpetuate an ~8-week low (Sept. 12)–low (Nov. 9)–low Cycle Progression. So, there are multiple factors projecting the next intermediate low for the first week of Jan.
The NYSE is corroborating that as it retests its early-Sept. high & its 6–12 month LLH upside objective (10,898/NYA) while perpetuating a 21–23 week low-low-low-(high) Cycle Progression and completing an equal-duration ~9-month decline followed by ~9-month advance.”
Stock Indices projecting focus to early-Jan. 2017 for next cycle low, perpetuating a 4-week & 8-week cycle low. Early-March 2017 could invert & time subsequent peak, close to when 17-Year Cycle portends final peak & begins to turn negative (March 2017). See Weekly Re-Lay & INSIIDE Track for additional details.