We are 21 weeks into the rally phase of the intermediate-term cycle that began in March.

(Click on image to enlarge)

The magnitude of the last decline phase signals the likely transition to a bearish intermediate-term trend and favors additional losses during the next decline phase.

S&P 500 Index Weekly Chart Analyses

The following technical and cycle analyses provide intermediate-term forecasts for the S&P 500 index. 

Technical Analysis

The index closed slightly higher this week, holding at recent highs of the uptrend from March. Technical indicators are bullish overall, strongly favoring a continuation of the advance.

(Click on image to enlarge)

Cycle Analysis

We are 21 weeks into the rally phase of the cycle following the intermediate-term cycle low (ITCL) that occurred during the week ending March 27. The magnitude of the last decline phase signals the likely transition to a bearish translation and favors additional weakness. The window during which the next ITCL is likely to occur is now through September 18, with our best estimate being in the August 21 to September 18 range.

• Last ITCL: March 27, 2019
• Cycle Duration: 21 weeks
• Cycle Translation: Bearish
• Next ITCL Window: Now through September 18; best estimate in the August 21 to September 18 range.

• Setup Status: No active setups.
• Trigger Status: No pending triggers.
• Signal Status: No active signals.
• Stop Level: None active.

(Click on image to enlarge)

Intermediate-term Outlook

• Bullish Scenario: A weekly close well above current levels would reconfirm the uptrend from March and forecast additional gains.
• Bearish Scenario: A reversal and weekly close below the middle of the Bollinger bands at 3,035 would predict a return to the 200-week moving average at 2,733.

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