Short-term Forecast for August 23, 2019

| August 23, 2019

Stock Market Commentary

A cycle high signal was generated today, indicating that the beta high (BH) of the current short-term cycle likely formed on August 22. We are 2 sessions into the beta phase decline of the short-term cycle that began in July.

The magnitude and duration of the last alpha phase decline signals the likely transition to a bearish trend and favors additional short-term weakness.

S&P 500 Index Daily Chart Analyses

The following technical and cycle analyses provide short-term forecasts for the S&P 500 index. For intermediate-term outlooks, see the latest intermediate-term forecast.

Technical Analysis

The index closed sharply lower today, approaching previous lows of the violent downtrend from July. Technical indicators are bearish overall, strongly favoring a continuation of the decline.

Cycle Analysis

A cycle high signal was generated today, indicating that the beta high (BH) of the current cycle likely formed on August 22. We are 2 sessions into the beta phase decline of the cycle following the short-term cycle low (STCL) on July 19. The magnitude and duration of the last alpha phase decline signals the likely transition to a bearish translation and favors additional short-term weakness. The window during which the next STCL is likely to occur is from August 27 to September 19, with our best estimate being in the August 30 to September 6 range.

  • Last STCL: July 19, 2019
  • Cycle Duration: 25 sessions
  • Cycle Translation: Bearish
  • Next STCL Window: August 27 to September 19; best estimate in the August 30 to September 6 range.
  • Setup Status: Cycle high setup occurred today.
  • Trigger Status: Cycle high trigger occurred today.
  • Signal Status: Cycle high signal was generated today.
  • Stop Level: None active.

Short-term Outlook

  • Bullish Scenario: A rebound and close well above the 50-day moving average at 2,947 would predict a move up toward the previous long-term high at 3,026.
  • Bearish Scenario: A close below the recent short-term low at 2,841 would predict a move down to the 200-day moving average at 2,803.

The bearish scenario is highly likely (>80 probable).

Category: Forecasts, Short-term Forecasts


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