Cycle Trading

XLE is in the process of forming a weekly swing low.

XLE broke below the week 22 low last week to extend its intermediate cycle decline. That was week 29, placing it very deep in its timing band for an ICL. Forming a weekly swing low signals the new intermediate cycle. XLE is currently in a weekly uptrend. A close back above the 10 week MA would indicate a continuation of its weekly uptrend and signal a weekly cycle band buy signal — in which we would label week 29 as the ICL.