Confirmed Short-term Signal: Stock Market Cycle Analysis

| March 18, 2013

Weakness during the final hour of trading caused a cycle high signal to be generated today, indicating that the alpha high (AH) of the current short-term cycle likely formed on March 14. Only a quick move above the stop level at 1,563 during the next session would invalidate the signal and suggest that the alpha phase rally is still in progress.

A brief, shallow alpha phase decline of less than 8 sessions in duration followed by a move well above the AH during the beta phase rally would reconfirm the current bullish translation and favor additional short-term strength. Alternatively, an extended alpha phase decline of more than 10 sessions in duration that returns to the last short-term cycle low (STCL) near 1,488 would suggest that cycle translation is in question.

Category: Signals, Stocks

Comments are closed.