Last week, our chart analysis indicated that a violent short-term correction was imminent in the stock market. The expected reversal occurred on July 8 and the S&P 500 index has declined 2.6% during the last two sessions.
The sharp decline has confirmed that the Alpha High (AH) of the current short-term cycle is in place and the character of the developing alpha phase decline will provide the next assessment of cyclical bull market health as the distribution pattern from February approaches the final stage of its development.
Market behavior during the next several weeks will provide an important signal with respect to long-term direction. We will identify the key technical developments as they occur in our daily commentary available to subscribers.
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