Cycle Trading

On Saturday we noted how Biotech is the early leader out of the daily cycle low. On Tuesday Biotech delivered bullish follow through.

Prior to the June low, RSI 05 was in a bearish pattern – embedding in oversold and quickly reversing once overbought. That is changing. RSI 05 is beginning to embed in overbought – which is characteristic of an intermediate cycle advance. That aligns with Biotech being in daily uptrend. Biotech will remain in its daily uptrend unless it close below the lower daily cycle band.