XLE closed below the 50 day MA, the 200 day MA, and the 10 day MA last week to signal the daily cycle decline. However, XLE did not deliver any bearish follow through.
Instead, XLE formed a swing low on Friday. Then it delivered bullish follow through this week by closing above the 10 day MA on Monday and then above both the 200 day MA and the 50 day MA on Tuesday to indicate that day 11 was a half cycle low. XLE also closed back above the upper daily cycle band on Tuesday. Closing above the upper daily cycle band ends the daily downtrend and begins a new daily uptrend. Closing back above the upper daily cycle band also indicates that the intermediate cycle low has been set — which I plan to discuss in the week’s Weekend Updates.
Cycle Trading 
Leave a comment