Cycle Trading

Stocks formed a swing low on Monday then delivered bullish follow through Wednesday and Thursday.

Stocks closed above the declining accelerated (dashed) trend line on Thursday, turning the 10 day MA higher, confirming that day 60 was the daily cycle low.

The next task at hand is to break above the lower stem of the megaphone topping pattern. Stocks will need to do so in order for any bullish trending move to develop. Rejection here would extend the intermediate cycle decline.