Potential Short-term Signal: Stock Market Cycle Analysis

| May 23, 2019

The decline today has caused both short-term cycle oscillators to experience bearish crossovers, and a bearish engulf pattern has formed on the daily chart. A close below 2,840 on the S&P 500 index today would generate a cycle high signal and indicate that the alpha high (AH) of the current short-term cycle likely formed on May 21.

A quick rebound followed by an extended beta phase rally that moves up to new highs would reconfirm the current bullish trend and favor additional short-term strength. Alternatively, an extended alpha phase decline that moves well below the last short-term cycle low (STCL) at 2,811 would signal the likely transition to a bearish trend.

Category: Signals, Stocks

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