Never miss an analysis →

Cycle Trading

Bullish Follow Through

Stocks delivered bullish follow through on Tuesday.

Stocks formed a swing low and closed above the declining trend line on Monday to signal the new daily cycle. On Tuesday stocks delivered bullish follow through by closing higher. However, stocks were halted by resistance at the 10 day MA. Stocks should break above the 10 day MA and turn it higher as it rallies out of its daily cycle low. Stocks are in a daily uptrend and will remain so unless they close below the lower daily cycle band.

3 responses to “Bullish Follow Through”

  1. Alex Avatar
    Alex

    Or is it just a retrace to 10dma on pre-fomc dollar weakness, so that, once fomc becomes past tense, dxy will turn back up in IC advances rotating all other assets in decline?

    Reply
    1. likesmoneystudies Avatar
      likesmoneystudies

      Certainly a possibility, the dxy is due for not only an IC advance but a YC advance as well.

      Reply
      1. Alex Avatar
        Alex

        Thank you! Furthermore, COT report is strongly bearish for the euro, underlying incoming dxy strength.

Leave a reply to Alex Cancel reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.