The S&P 500 index closed sharply higher today, reacting off of recent lows of the violent downtrend from early May. As a result of today's rebound, both cycle analysis price oscillators experienced bullish crossovers and a bullish engulf pattern formed on the daily chart, generating a cycle low signal.
We have been expecting the formation of a short-term low and the cycle low signal indicates that the Beta Low (NASDAQ:BL) of the current cycle likely occurred yesterday. Only a move below the stop level at 1,271 tomorrow would invalidate the signal. The magnitude and duration of the decline from May calls long-term direction into question and the character of the forthcoming beta phase rally will provide the next short-term assessment of cyclical uptrend health.
Subscribe to our RSS feed to receive our free daily market analysis.