Cycle Trading

Oil formed a swing low and closed above the declining trend line to deliver a clear convincing confirmation of the new daily cycle.

Monday was day 2 for the daily oil cycle. Oil will need to close above the upper daily cycle band in order to to re-establish its daily uptrend.

Stocks are currently in a daily uptrend.

Monday was day 10 for the daily equity cycle. Stocks did break lower on Monday, back testing both the 10 day MA and the 50 day MA before recovering some into the close. Stocks will continue in their daily uptrend unless they close below the lower daily cycle band.