On Tuesday we discussed the potential for a September sell-off for stocks. It appears have been averted — for now.
Stocks printed their lowest point on day 21, which is early to expect a DCL to form. However, stocks did not deliver bearish follow through on Wednesday. Instead, stocks found support at the 6350 level and formed a swing low and closed back above the 10 day MA. Stocks went on to deliver bullish follow through on Thursday. Stocks are currently in a daily uptrend. Closing back above the 10 day MA indicates a continuation of its daily uptrend and signals cycle band buy signal — so we will label day 21 as an early DCL.
Stocks look to be rallying into a new daily cycle. However, the longer term, intermediate cycle is due to decline. I plan to discuss in the Weekend Report the expectations for a new daily cycle at this late stage of the intermediate cycle.
Cycle Trading 
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