Cycle Trading

Stocks had a bullish day on Friday.

Stocks formed a bullish reversal off of support of the 50 day MA on Thursday. Then delivered bullish follow through on Friday by forming a swing low, closing above the 10 day MA and the 3940 resistance level so we will label day 15 as the half cycle low. Stocks are in a daily uptrend. Forming the swing low above the upper daily cycle band indicates that stocks will remain in their daily uptrend and triggers a cycle band buy signal.

The 3940 level was a resistance level.

Closing above the 3940 resistance level signals the continuation of the intermediate cycle advance. The 3940 level should now be support, which will be our stop.