Cycle Trading

Stocks were lower on Tuesday, continuing stocks recent round of volatility.

Even though stocks dropped close to 1.5% on Tuesday, stocks did not print a lower low. Which means that a break above Monday’s high 2163.30 forms a daily swing low. And with stocks so late in their timing band a swing low should signal a new daily cycle. The 593 million Buying on Weakness that printed today also signals that the bottom is near. Still, stocks could break lower. If stocks do break lower, it would probably be short lived and represent a buying opportunity.