Cycle Trading

Stocks printed a bullish reversal on Thursday.

Thursday was day 14 for the daily equity cycle and stocks filled the lower gap. If a swing low forms that will allow us to construct a daily cycle trend line and label day 14 as a half cycle low.

This is the first daily cycle of the new intermediate cycle and as such should form as a right translated daily cycle. Stocks will need to break above the day 7 high of 2815.15 in order to form a right translated daily cycle. However stocks printed 308 million Selling on Strength on Thursday which suggests more volatility going forward.