Cycle Trading

As we discussed on Saturday, stocks closed back above the 10 day MA so we labeled day 17 as the daily cycle low. Here is what we are looking for to determine if stocks are also forming a longer term, intermediate cycle low.

First we are watching for stocks to form a weekly swing low. A break above 5481.34 will form a weekly swing low. A close above the 10-week MA will have us label week 35 as the intermediate cycle low.  Next, we are looking for a close above the 50-week moving average in order for a trending move to be sustained