Sample Stock Market Signal Alert from August 8, 2014

The advance today has caused both short-term cycle oscillators to experience bullish crossovers and a bullish engulf pattern has nearly formed on the daily chart. A close above 1,930 on the S&P 500 index today would generate a cycle low signal and indicate that the latest short-term cycle low (STCL) likely formed on August 7.

An extended alpha phase rally that moves well above the last beta high (BH) near 1,988 would reconfirm the current bullish translation and favor additional short-term strength. Alternatively, a quick reversal followed by an extended alpha phase decline that moves well below the developing STCL near 1,910 would signal the likely transition to a bearish translation.