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Erik McCurdy
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Erik is the senior market technician for Prometheus Market Insight and has been performing chart analysis since 1995. The software program that he developed to monitor long-term stock market trends has correctly identified 92% of the cyclical turning points in the S&P 500 index since 1940.... More
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  • Stocks Begin Important Beta Phase Decline 1 comment
    Apr 23, 2012 5:24 PM | about stocks: SPY, DIA, QQQ

    The S&P 500 index closed moderately lower today, generating a cycle high signal that indicates the Beta High (NYSE:BH) of the current short-term cycle likely formed on April 17.

     

     

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    The stock market continues to track the bearish short-term scenario that we outlined two weeks ago and a close below the last Short-Term Cycle Low (STCL) near 1,340 would signal a likely transition to left translation and favor additional short-term weakness. Additionally, as expected, the cycle high signal that was generated today provided the next optimal entry point for a short swing trade with a stop level at or slightly above the Alpha High (NYSE:AH) near 1,419.

     

     

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    The intermediate-term cycle from November 2011 continues to develop as anticipated following the formation of the Intermediate-Term Cycle High (ITCH) at the beginning of April. The latest Intermediate-Term Cycle Low (ITCL) will likely develop sometime during the next two to four weeks, probably in conjunction with the formation of the next STCL.

     

     

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    The stock market remains within a critical window with respect to long-term direction and it will be important to monitor price behavior closely during the next several weeks.

    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.

    Themes: Market Outlook Stocks: SPY, DIA, QQQ
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  • untrusting investor
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    OK, good update. But still looking for indication of how low and for how long any significant sell off can be.
    23 Apr 2012, 06:51 PM Reply Like
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