Potential Short-term Signal: Stock Market Cycle Analysis

| March 1, 2018

The decline today has caused a bearish engulf pattern to form on the daily chart, accompanying the cycle high setup that occurred on February 28. A close below 2,704 on the S&P 500 index today would generate a cycle high signal and indicate that the beta high (BH) of the current short-term cycle likely formed on February 27.

An extended beta phase decline that moves below the last beta low (BL) at 2,532 would reconfirm the current bearish translation and favor additional short-term weakness. Alternatively, a quick rebound followed by an extended alpha phase rally that moves above the last alpha high (AH) at 2,873 would signal the transition to a bullish translation.

Category: Signals, Stocks

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