Cycle Trading

Pre-Summary

Stocks broke bullishly above 7600 last week before becoming stretched above the 10 day MA. The current consolidation is allowing the 10 day MA time to catch up to price while the daily uptrend remains intact.

Stocks had been contained by resistance at the 7600 level before breaking bullishly out of consolidation last week.

Following the breakout, stocks became quite stretched above the 10 day MA and have since been consolidating below the 7800 level.

The consolidation is helping to allow the 10 day MA time to catch up to price while stocks remain in their daily uptrend.

A bullish breakout from the current consolidation will indicate a continuation of the daily uptrend and signal a cycle band buy signal.

The 7600 level had previously acted as resistance. Following the breakout, we will also be watching to see if the previous 7600 resistance level now turns to support.

Cycle Alignment

Daily: Uptrend intact; consolidating below 7800 after becoming stretched above the 10 day MA.

Structure: Bullish breakout above 7600 remains intact.

Next Trigger: Bullish breakout from consolidation signals continuation and a cycle band buy signal.