Cycle Trading

Stocks broke back above the 4135 resistance level on Monday then closed higher again on Tuesday.

Stocks are currently in a daily uptrend. Breaking bullishly out of consolidation indicates a continuation of the daily uptrend and signals a cycle band buy signal. Now that stocks broke back above the 4135 resistance level, that should now act as support. And with the bearish divergences developing on the oscillators, stops should be raised to the 4135.