Cycle Trading

Stocks are up over 2% this week, confirming that June 17th marked the daily cycle low. But, stocks are not out of the woods yet.

Stocks are approaching the intermediate down trend line. Stocks will need to close above the declining intermediate trend line to signal that June 17 marked not only the daily cycle low, but the intermediate cycle low as well.

We need to keep in mind that stocks were rejected quite convincingly the previous two times that stocks approached this line. So it will not be surprising to see some volatility even if June 17th did mark the intermediate cycle low.