Potential Short-term Signal: Stock Market Cycle Analysis

| April 15, 2013

The decline today has caused both cycle analysis price oscillators to experience bearish crossovers. A close below 1,563 today would generate a cycle high signal and indicate that the alpha high (AH) of the current short-term cycle likely formed on April 11.

A brief, shallow alpha phase decline of less than 7 sessions in duration followed by a move well above the developing 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 moves well below the last short-term cycle low (STCL) near 1,540 would signal the likely transition to a bearish translation.

Category: Signals, Stocks

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