Cycle Trading

Stocks delivered a bullish change in behavior on Monday.

RSI 05 would embed in oversold and quickly reverse from overbought as stocks were seeking out their ICL. That behavior has changed since the day 22 DCL. Since then RSI 05 has quickly reversed once oversold and is now starting to embed in overbought – which is characteristic of an intermediate cycle advance. Stocks will need to close above the 200 day MA for a trending move to develop.