Stock Market Commentary

We are 12 sessions into the beta phase rally of the short-term cycle that began on November 1. The beta high (BH) of the current cycle will likely form sometime during the next 3 sessions if it has not already occurred today.

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The magnitude and duration of the last alpha phase decline signal the likely transition to a bullish short-term trend.

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 lower today, retreating from recent highs of the uptrend from March. Technical indicators are moderately bullish overall, favoring a continuation of the advance.

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Cycle Analysis

We are 12 sessions into the beta phase rally of the cycle following the short-term cycle low (STCL) on November 1. The beta high (BH) will likely form sometime during the next 3 sessions if it has not already occurred today. The magnitude and duration of the last alpha phase decline signal the likely transition to a bullish translation. The window during which the next STCL is likely to occur is from December 11 to December 31, with our best estimate being in the December 17 to December 23 range.

• Last STCL: November 1, 2020
• Cycle Duration: 26 sessions
• Cycle Translation: Bullish
• Next STCL Window: December 11 to December 31; best estimate in the December 17 to December 23 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 well above the recent short-term high at 3,706 would reconfirm the uptrend from March and forecast additional gains.
• Bearish Scenario: A reversal and close below the middle of the Bollinger bands at 3,625 would predict a return to the 50-day moving average at 3,506.

The bullish scenario is slightly more likely (~60 probable).