Stocks formed a swing low and delivered a convincing 2.15% rally on Tuesday which indicates me that day 40 hosted the daily cycle low.
I had a concern about that the 764 million Selling on Strength that printed on Friday indicated that an undercut low was in the cards. While we still need to see a close above the 10 day MA to signal a new daily cycle, the strength of Tuesday’s rally convinces that day 40 was the DCL. And with such a strong thrust that I suspect that Thursday also marks the ICL.
The McCellan Oscillator closed above the 50 day MA on Tuesday. This is similar to the type of thrust that was demonstrated during the last 2 ICL’s.
Cycle Trading 
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