Potential Short-term Signal: Stock Market Cycle Analysis

| February 7, 2019

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 2,685 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 5.

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

Category: Signals, Stocks

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