Cycle Trading

Pre-Summary

Hold → breakout holding + continuation attempt

Following the recent breakout above 7150, stocks have now begun to stabilize above that former resistance level.

From a cycle perspective, this price action continues to unfold within a daily uptrend, with support being found at the rising 10 day moving average. The ability to hold above prior resistance suggests the breakout is still in the process of being validated. Structurally, this is constructive. The initial failure to follow through earlier in the week was met with support, and price has since reclaimed and held key levels. This type of behavior is consistent with consolidation within an ongoing uptrend rather than immediate reversal.

Confirmation will be needed through continued acceptance above 7150 and maintaining support at the 10 day moving average. What is clear is that the trend remains higher while price holds above former resistance. However, the market is still somewhat extended on the short-term timeframe, and additional consolidation would be a normal development before any further sustained move higher.  If stocks continue to hold above 7150, then the daily uptrend remains intact and suggests continuation higher. If price closes below the 10 day moving average, then the daily cycle decline would be in progress.

Cycle Alignment

Bullish