Never miss an analysis →

Cycle Trading

Daily Cycle Low

Stocks formed a swing low on Tuesday.

Stocks printed their lowest point on Monday, day 36, placing them in their timing band for a daily cycle low. Stocks formed a swing low on Tuesday and closed above both the 50 day MA and the 10 day MA to signal the new daily cycle. Stocks should go on to break above the declining trend line as they rally out of their DCL. Stocks are currently in a daily downtrend. But a close above the upper daily cycle band will end the daily downtrend and begin a new daily uptrend.

4 responses to “Daily Cycle Low”

  1. Alexandru Avatar
    Alexandru

    Good morning! Wouldn’t you say that SOXX most likely set its YCL on Monday?
    There is a bullish divergence w/ oscilators on the wkly chart, so that SOXX set at least an ICL, unless even an YCL.
    Then, fear index is still low, despite stocks’ rise on Monday and Tuesday (many indexes also yesterday) which suggests a hear inertia to bearishness, typical at more significant bottoms –> extra argument for YCL.
    What would you opine, pls?

    Reply
    1. Alexandru Avatar
      Alexandru

      *a herd inertia to..

      Reply
      1. likesmoneystudies Avatar
        likesmoneystudies

        I generally follow the SPX for cycle counts because other sectors generally follow.
        SOXX lead the market out of the March 2020 – 4 year cycle low.
        It is interesting to see that the SPX set its YCL in February, the Nasdaq in March and now SOXX apparently in April. -So it appears that both the SPX and the Nasdaq are waiting for the SOXX to set its YCL before any trending move can develop.
        https://postimg.cc/SnGxNbN6

  2. Alexandru Avatar
    Alexandru

    Thank you!
    That low may come at fomc, lets see

    Reply

Leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.