Potential Short-term Signal: Stock Market Cycle Analysis

| January 30, 2019

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 2,665 on the S&P 500 index today would generate a cycle low signal and indicate that the beta low (BL) of the short-term cycle that began in December likely formed on January 29.

A quick reversal followed by a move below the last short-term cycle low (STCL) at 2,351 would reconfirm the current bearish trend and forecast additional short-term weakness. Alternatively, an extended beta phase rally that moves well above the last alpha high (AH) at 2,814 would signal the likely transition to a bullish trend.

Category: Signals, Stocks

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