Cycle Trading

On Monday we said that we were looking for stocks to do 3 things to signal that the correction is over.

Stocks managed to close above the 10 day MA (1) and broke above the declining trend line (2).

However, stocks have yet to form a weekly swing low (3). We will use the close above the 10 day MA and declining trend line break to label day 23 as the DCL. We are still waiting for a break above 3914.50 to form a weekly swing low to signal that the intermediate cycle low has been set.

Like they say, 2 out of 3 ain’t bad …