Cycle Trading

Stocks sold off Monday and Tuesday in anticipation of the Fed raising interest rates.

Stocks continued to sell off after the announcement of another interest rate hike on Wednesday then then broke below the day 30 low on Thursday.

While stocks could continue lower, stocks did form a bullish reversal just above support from the 50 day MA on Thursday. There are also bullish divergences developing on the oscillators. This is setting stocks up for a bullish surprise. Stocks are currently in a daily uptrend. If stocks form a swing low above the lower daily cycle band that will indicate a continuation of the daily uptrend and signal a cycle band buy signal. A break above 4082.61 will form a daily swing low.