Potential Short-term Signal: Stock Market Cycle Analysis

| March 20, 2017

The decline today has caused both short-term cycle oscillators to experience bearish crossovers and a bearish engulf pattern has nearly formed on the daily chart. A close below 2,365 on the S&P 500 index today would generate a cycle high signal and indicate that the alpha high (AH) of the current short-term cycle likely formed on March 15.

Cycle translation is in question. An extended alpha phase rally that moves above the last beta high (BH) at 2,396 would reconfirm the current bullish translation and favor additional short-term strength. Alternatively, an extended alpha phase decline that moves well below the last short-term cycle low (STCL) at 2,354 would signal the likely transition to a bearish translation.

Category: Signals, Stocks

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