Stocks continued lower on Tuesday.

Stocks typically print a daily cycle low every 35 to 45 days. So at 69 days, stocks are overdue for a daily cycle low. Tuesday’s narrow range day eases the parameters for forming a swing low. A break above 5079.84 will form a swing low. Then a close above the 10 day MA will signal the new daily cycle. I plan to discuss in the Weekend Report what stocks need to do to convince me that the pending rally is not going to be a Dead Cat Bounce.