Potential Short-term Signal: Stock Market Cycle Analysis

| April 20, 2017

The advance today has caused both short-term cycle oscillators to experience bullish crossovers and a bullish engulf pattern has formed on the daily chart. A close above 2,352 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 April 13.

Cycle translation is in question. An extended alpha phase rally that moves above the beta high (BH) in March at 2,396 would reconfirm the current bullish translation and favor additional short-term strength. Alternatively, an extended beta phase decline that moves well below the last beta low (BL) at 2,322 would signal the likely transition to a bearish translation.

Category: Signals, Stocks

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