Potential Short-term Signal: Stock Market Cycle Analysis

| June 29, 2018

The advance today has nearly caused both short-term cycle oscillators to experience bullish crossovers, and a bullish engulf pattern has nearly formed on the daily chart. A close above 2,743 on the S&P 500 index today would generate a cycle low signal and indicate that the beta low (BL) of the current short-term cycle likely formed on June 27.

Cycle translation is in question. A quick reversal followed by an extended beta phase decline that moves below the short-term cycle low (STCL) in February at 2,532 would reconfirm the current bearish translation and favor additional short-term weakness. Alternatively, an extended beta phase rally that moves well above the beta high (BH) in March at 2,792 would signal the likely transition to a bullish translation.

Category: Signals, Stocks

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