Short-term Forecast for September 15, 2020

| September 15, 2020

Stock Market Commentary

We are 8 sessions into the alpha phase decline of the short-term cycle that began on August 20. The beta low (BL) of the current cycle may have formed on September 11, although we would need to see additional strength to confirm that development.

A quick rebound followed by an extended beta phase rally that moves up to new highs would reconfirm the current bullish short-term trend and forecast additional gains. Alternatively, an extended alpha phase decline that moves well below the last short-term low at 3,360 would signal the likely transition to a bearish short-term trend.

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 higher today, reacting further off of recent short-term lows below previous highs of the uptrend from March. Technical indicators are effectively neutral overall, suggesting that direction is in question.

Cycle Analysis

We are 8 sessions into the alpha phase decline of the cycle following the short-term cycle low (STCL) on August 20. The beta low (BL) may have formed on September 11, although we would need to see additional strength to confirm that development. A quick rebound followed by an extended beta phase rally that moves up to new highs would reconfirm the current bullish translation and forecast additional gains. Alternatively, an extended alpha phase decline that moves well below the last STCL at 3,360 would signal the likely transition to a bearish translation. The window during which the next STCL is likely to occur is from September 30 to October 20, with our best estimate being in the October 12 to October 16 range.

  • Last STCL: August 20, 2020
  • Cycle Duration: 18 sessions
  • Cycle Translation: Bullish
  • Next STCL Window: September 30 to October 20; best estimate in the October 12 to October 16 range.
  • 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 close well above the middle of the Bollinger bands at 3,429 would predict a return to the previous short-term high at 3,581.
  • Bearish Scenario: A close well below the 50-day moving average at 3,331 would reconfirm the downtrend from early September and forecast additional losses.

Both scenarios are equally likely.

Category: Forecasts, Short-term Forecasts


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