Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Stock Market Enters Important Short-Term Cycle

|Includes:DIA, QQQ, SPDR S&P 500 Trust ETF (SPY)

Last week, our cycle analysis identified the potential development of the latest short-term cycle low (STCL) in the stock market. On Friday, a cycle low signal was generated, confirming that a new short-term cycle is in progress.

With respect to technical analysis, the uptrend from November remains extremely overextended and a break below key support levels would signal the likely start of a potentially violent overbought correction.

This is an important short-term cycle and market behavior during the next several sessions could have a meaningful impact on the long-term health of the bull market from 2009.

We will identify the key developments as they occur in our daily market forecasts and signal notifications available to subscribers. Try our service for free.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Stocks: SPY, DIA, QQQ