The decline today has caused both short-term cycle oscillators to experience bearish crossovers, and a bearish engulfing pattern has formed on the daily chart. A close below 2,752 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 April 17.

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An extended alpha phase decline that moves below the last short-term cycle low (STCL) at 2,191 would reconfirm the current bearish trend and forecast additional losses. Alternatively, a brief, shallow decline followed by a quick move above the developing AH at 2,875 would signal the likely transition to a bullish short-term trend.