Stocks Set Stage for 2–4 Week Top

06/08/16 Weekly Re-Lay Alert: 

“Stock Indices remain positive on a 2–3 month basis and most have turned back to positive on a 2–4 week basis.  They fulfilled projections for an intermediate decline from April 19^th/20^th into May 19^th/20^th and have rebounded since.  

On a near-term basis, this rebound has extended beyond the ideal time for the next (2–4 week) peak – except in the Nasdaq 100.  With the Indices rallying beyond June 3^rd/6^th, they have failed to corroborate the ~90-degree cycle sequence (that next comes into play on July 19^th/20^th) – so that potential remains unconfirmed.

The short-term trends would not turn back to neutral until daily closes below 17,838/DJIA, 2097.25/ESU & 4491/NQU.

On a slightly larger-degree (intermediate) basis, two key timing factors still argue for a peak (at least a 2–4 week peak and more likely a 1–2 month peak) in the first half of June.  These are not quite as precise, but are more consistent…

The first is the convergence of intermediate cycles in the Russell 2000 (and some related Indices)…

The second is the weekly LHR indicator.  The Indices tested & held this level (extreme intra-week upside objective) on May 27^th, projecting an ensuing intermediate peak within 1–3 weeks…

A ~5-month cycle still portends an important low in late-June (–early-July; ~5 months from the early-Feb. lows in some Indices), with intervening action needing to clarify the degree of that bottom.”