Short-term Forecast for December 3, 2019

| December 3, 2019

Stock Market Commentary

We are 3 sessions into the beta phase decline of the short-term cycle that began in early October.

The magnitude and duration of the last beta phase rally signal the likely transition to a bullish short-term trend and favor additional strength during the next rally phase.

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 moderately lower today, retreating further from recent highs of the uptrend from August. Technical indicators are neutral to slightly bearish overall, suggesting that direction is in question with a slight downward bias.

Cycle Analysis

We are 3 sessions into the beta phase decline of the cycle following the short-term cycle low (STCL) on October 2. The magnitude and duration of the last beta phase rally signal the likely transition to a bullish translation and favor additional short-term strength. The window during which the next STCL is likely to occur is now through December 9.

  • Last STCL: October 2, 2019
  • Cycle Duration: 42 sessions
  • Cycle Translation: Bullish
  • Next STCL Window: Now through December 9.
  • Setup Status: No active setups.
  • Trigger Status: No pending triggers.
  • Signal Status: No active signals.
  • Stop Level: None active.

Short-term Outlook

  • Bullish Scenario: A rebound and close above the recent high at 3,154 would reconfirm the uptrend from August and forecast additional gains.
  • Bearish Scenario: A close below current levels would predict a move down toward the 50-day moving average at 3,033.

The bearish scenario is more likely (~70 probable).

Category: Forecasts, Short-term Forecasts


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