Cycle Trading

Stocks formed a swing low on Tuesday.

If stocks can deliver some bullish follow through then we will label Monday as a half cycle low.

Monday was day 24 for the daily equity cycle. Stocks backtested the previous intermediate cycle top on Monday. If stocks deliver any bullish follow through that would indicate a successful backtest allowing us to construct the daily cycle trend line. Stocks continue to close above the upper daily cycle band indicating that there are in a daily uptrend. They will remain in their daily uptrend unless they close below the lower daily cycle band.