Cycle Trading

Stocks formed a swing low and delivered a clear and convincing trend line break to confirm a new daily cycle.

Stocks printed their lowest point last Tuesday, breaking below the previous daily cycle low and forming a failed daily cycle. Since stocks were in their timing band for a daily cycle low, the trend line break confirms a new daily cycle. A close above the upper daily cycle band confirms that an intermediate low has also been set. The swing low on the weekly chart does signal a new intermediate cycle.

The intermediate cycle peaked on week 31 and formed its lowest point last week at week 38, tagging the 50 week MA. A swing low here at 38 weeks has very good odds of marking a new intermediate cycle. A break to new highs will confirm the new intermediate cycle.

The Miners may be ready to rebound as they are nearing their timing band for a daily cycle low.

The daily Miner cycle peaked on day 1 and has been in decline since. Monday was day 17 for the daily Miner cycle. The Miners are one day away from entering their timing band for printing a daily cycle low. A break above 16.91 forms a swing low. Then a declining trend line break signals a new daily cycle.