The S&P 500 index closed sharply lower today, moving down to a new low for the decline from late October in the trading range between 1,120 and 1,220.
Technical indicators continue to weaken and they are now extremely bearish overall on the daily chart, strongly favoring a continuation of the decline. Additionally, the sharp decline during the beta phase of the current short-term cycle is a bearish development that signals translation is in question. However, the next Short-Term Cycle Low (STCL) will likely form sometime during the next several sessions.
Price behavior continues to track the bearish cycle scenario that we outlined at the beginning of November and the market is very close to providing the final confirmation that a cyclical bear market began in May, so it will be important to monitor the development of the next short-term cycle closely. We will identify the key developments as they occur in our daily market forecasts and signal notifications available to subscribers.
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