Stocks Are Firmly in a Daily Uptrend

March 5, 2019

Stocks were down big early on Monday but rallied enough into the close to close above the 10 day MA.

Monday was day 46 for the daily equity cycle. With stocks now late in their timing band for a daily cycle decline, the early sell off should have triggered a decline into the daily cycle low.

Instead, equities are all up in the overnight trading. While I suspect that optimism over a pending trade deal with China is helping equities maintain their bullish posture, what is certain is that stocks are firmly in a daily uptrend.

A daily uptrend is characterized by peaks above the upper daily cycle band and lows forming above the lower daily cycle band. So unless stocks close below the lower daily cycle band, they will remain in their daily uptrend.

3 responses to “Stocks Are Firmly in a Daily Uptrend”

Koen Huysman

March 5, 2019

Does it mean the decline should begin or is it already the start of a new cycle?

Reply
1. likesmoneystudies
  
  March 5, 2019
  
  The daily equity cycle is getting stretched, probably over optimism of a pending trade deal. If we get a close below the 10 day MA – then that should send stocks to seek out their DCL. But being this late in the daily cycle, any decline will likely be brief.
  
  Reply
  1. Koen Huysman
    
    March 5, 2019
    
    Thanks

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