The rally out of the day 30 DCL sent stocks sharply higher, pushing them stretched above the 10 day moving average on Friday, day 4. That type of early strength is typical for a new daily cycle, but it often leads to a brief consolidation — and that’s exactly what we’re seeing now.
Stocks have begun to tighten up beneath the 6850 level. This consolidation phase should allow the 10 day moving average time to catch up to price, helping to rebuild support for the next potential leg higher.
Stocks remain in a daily uptrend. A bullish breakout from consolidation would indicate a continuation of that uptrend and trigger a cycle band buy signal.
Cycle Trading 
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