by Erik McCurdy, Prometheus Market Insight
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 2,137 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 October 24.
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A cycle translation is in question. An extended alpha phase decline that moves below the short-term cycle low (STCL) in September at 2,120 would reconfirm the current bearish translation and favor additional short-term weakness. Alternatively, a quick rebound followed by an extended beta phase rally that moves well above the beta high (BH) in September at 2,186 would signal the likely transition to a bullish translation.
