Cycle Trading

Stocks continued higher on Tuesday.

Tuesday was day 21 for the daily equity cycle. The new high on day 21 shifts the odds towards a right translated daily cycle formation. That aligns with stocks being in a daily uptrend. Stocks will remain in their daily uptrend unless they close below the lower daily cycle band.

The decline into the ICL stretched the ‘elastic band’ lower. Stocks are delivering bullish follow through on the breakout of the 4545.85 level. This could trigger a melt-up phase.