Cycle Trading

Stocks printed a new daily cycle high on Friday, which was day 28. That locks in a right translated cycle formation and confirms that 8/21 hosted an intermediate cycle low.

With stocks locking in a right translated daily cycle formation that confirms that week 42 hosted the ICL. Which makes this week 5 for the new intermediate cycle. Stocks continue to close above the upper weekly cycle band indicating a weekly uptrend. They will remain in their uptrend until they close below the lower weekly cycle band.

It is time to recognize a change in character for stocks. Back in March stocks declined into what looked like an intermediate cycle low. Stocks satisfied most of the parameters necessary for an intermediate cycle low aside from forming a failed daily cycle.

Our cycle band tool did correctly point to March hosting an ICL, as well as the recent ICL. We did not label an ICL in March because it did not form a failed daily cycle. But stocks just confirmed an ICL without a failed daily cycle…

I believe that this weekly uptrend is becoming so strong that we may not see a failed daily cycle until the weekly uptrend ends. Based on that I have re-labeled the March low as an intermediate cycle low which makes the recent ICL a 21 week ICL.