Stocks formed a swing low and closed back above both the 10 day MA and the 5000 level on Thursday.
Stocks printed their lowest point on day 26, which is a bit early for a DCL. Stocks should have turned the day 10 MA lower in order to complete the daily cycle decline. But with Nvidia topping Wall Street estimates for the fourth-quarter, it appears that day 26 was the DCL. Stocks are currently in a daily uptrend. With stocks forming a swing low and closing back above both the 5000 level and the 10 day MA on Thursday that indicates a continuation of their daily uptrend and signals a cycle band buy signal – so we would then label day 26 as the DCL. Stops can be set at the 5000 level.
Cycle Trading 
Leave a comment