Cycle Trading

Stocks recovered the 200 day MA on Tuesday.

On Monday we discussed the bullish change in the behavior of RSI 05 — indicating that stocks are beginning an intermediate cycle advance. Stocks delivered further confirmation on Tuesday by closing above the upper daily cycle band. Closing above the upper daily cycle band signals an end to the daily downtrend and the beginning of a new daily uptrend. It also signals that the intermediate cycle low has been set.