Stocks Poised for Violent Spike Low

11/07/16 INSIIDE Track Stock Index Update: 

“Stock Indices …accelerated short-term cycles while corroborating intermediate & longer-term cycles…& turning their weekly trends down (DJIA & ESZ).  As reiterated last week, that weekly trend signal is a lagging/confirming one that usually arrives near the culmination of an initial decline & projects two important (though seemingly contradictory) events:

1 – On a 1–3 month basis, it confirms what has already been expected (a multi-month decline) and projects another wave down after an intervening bounce.

2 – On a 1–2 week basis, it times an initial (sometimes violent) low and reversal higher.

From an Elliott Wave perspective, this signal usually pinpoints the extreme of the ‘1’ or ‘A’ wave move (in this case, a decline) and the onset of a ‘2’ or ‘B’ wave rebound.  That is expected to be short-lived and quickly (within 1–3 weeks) give way to a new and more significant decline (‘3’ or ‘C’ wave down).

This action reinforces the overall outlook for increasing volatility – and a developing decline – leading into late-November, when the outlook turns more negative and a 15–18 month topping phase is expected to transition into a developing bear market…It preps the markets for a potentially sharper & more accelerated decline during [reserved for subscribers only]…

On a near-term basis, this rally accelerated the short-term cycles and…the Indices could ricochet back to weekly LHR levels… They come into play at [reserved for subscribers only]…”

Stock Indices increase potential for violent spike low AND rebound in short period of time.  Initial low & bounce – which could spur surge to weekly extreme levels – should yield sharper drop AFTER key cycle convergence in near future.  See Weekly Re-Lay for details.