Stocks Test Important Bull Market Support Level
Erik McCurdy | Nov 14, 2012 12:10AM ET
The S&P 500 index reversed early gains to close moderately lower yesterday, moving down to a marginal new low for the downtrend from October.
From an intermediate-term perspective, the cyclical bull market from 2009 has returned to support at the lower boundary of the power uptrend from 2011. The lower boundary of this power uptrend is an important support level, so stocks should be monitored closely as this test proceeds.
With respect to cycle analysis, the intermediate-term cycle from June continues to exhibit a bullish translation and the next important test of the cyclical bull market will occur after the next intermediate-term cycle low (ITCL) is in place.
The character of the rebound off of the forthcoming ITCL will provide the next signal with respect to long-term direction, so it will be important to monitor market behavior closely during the next several weeks.
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