Cycle Trading

Stocks broke out above the day 17 high on day 24. They have been consolidating above the day 17 high since then.

Stocks broke bearishly out of consolidation on Monday but formed a bullish reversal on Tuesday to close below back in the consolidation zone. Stocks delivered bullish follow through on Thursday. Thursday was day 33 for the daily equity cycle, placing stocks in their timing band for a daily cycle low. Stocks are currently in a daily uptrend. A break above the day 28 high of 4429.97 will indicate that stocks will remain in their daily uptrend. At this point of the daily cycle — even if stocks break higher, it will be given right back as stocks seek out their daily cycle low. However, there is the potential for stocks to begin a melt-up phase. Therefore stops could be raised to 4429.97 with a close above the day 28 high.