Confirmed Short-term Signal: Stock Market Cycle Analysis

| October 5, 2011

We are 41 trading days into the cycle following the short-term cycle low (STCL) on August 9. The strong advance today generated a cycle low signal, indicating that the latest STCL likely formed yesterday. Only a quick move below the stop level at 1,097 would invalidate the signal and suggest that the beta phase decline is still in progress.

A brief alpha phase rally followed by a quick move down to new lows would reconfirm left translation and favor additional short-term weakness. Alternatively, an extended advance that approaches the last beta high (BH) would suggest that cycle translation is in question.

Category: Signals, Stocks


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