Short-Term Cycle High Likely In Place
by Erik McCurdy, Prometheus Market Insight
The decline today (25 March) 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 2,074 on the S&P 500 index today would generate a cycle high signal and indicate that the beta high (BH) of the current short-term cycle likely formed on March 23.
A quick rebound followed by an extended alpha phase rally that moves well above the previous alpha high (AH) near 2,120 would reconfirm the current bullish translation and favor additional short-term strength. Alternatively, a move well below the last short-term cycle low (STCL) at 1,995 during the beta phase decline would signal the likely transition to a bearish translation.
Erik McCurdy is the senior market technician for Prometheus Market Insight.
No content is to be construed as investment advise and all content is provided for informational purposes only. The reader is solely responsible for determining whether any investment, security ...
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