Stock Market Commentary
We are 21 sessions into the alpha phase rally of the short-term cycle that began on December 3. The alpha high (AH) is overdue and it could form at any time.
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The magnitude and duration of the alpha phase rally reconfirm the current bullish short-term trend and favor additional strength.
S&P 500 Index Daily Chart Analyses
The following technical and cycle analyses provide short-term forecasts for the S&P 500 index.
Technical Analysis
The index closed moderately higher today, moving up to a new high for the uptrend from October. Technical indicators are bullish overall, strongly favoring a continuation of the advance.
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Cycle Analysis
We are 21 sessions into the alpha phase rally of the cycle following the short-term cycle low (STCL) on December 3. The alpha high (AH) overdue and it could form at any time. The magnitude and duration of the alpha phase rally reconfirm the current bullish translation and favor additional short-term strength. The window during which the next STCL is likely to occur is from January 14 to February 1, with our best estimate being in the January 24 to January 30 range.
- Last STCL: December 3, 2019
- Cycle Duration: 21 sessions
- Cycle Translation: Bullish
- Next STCL Window: January 14 to February 1; best estimate in the January 24 to January 30 range.
- Setup Status: No active setups.
- Trigger Status: No pending triggers.
- Signal Status: No active signals.
- Stop Level: None active.
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Short-term Outlook
- Bullish Scenario: A close above current levels would reconfirm the uptrend from August and forecast additional gains.
- Bearish Scenario: A reversal and close below uptrend support near 3,200 would predict a move down toward the 50-day moving average at 3,125.
The bullish scenario is highly likely (>80 probable).
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