Cycle Trading

Stocks delivered more bullish follow through on Monday.

Monday’s rally caused the 10 day MA to turn higher, which is more confirmation that day 26 hosted the DCL. Now stocks are approaching the 50 day MA.

The 50 day MA typically has provided either support during intermediate advances or resistance during intermediate declines. So we can expect some resistance at the 50 day MA. And if stocks have begun an intermediate advance then stocks should break above the 50 day MA. But stocks won’t really be out of the woods until they break above the 200 day MA.