Pre-Summary
Stocks and the Miners both tested important support. One held. The other didn’t.
Stocks retraced back to test the 10-day MA on Monday. Stocks managed to find support and closed above the 10-day MA. Stocks remain in a daily uptrend.
The Miners delivered a very different response.
After breaking below the Day 42 low on Thursday, the Miners delivered bearish follow-through on Monday. They closed below Thursday’s low and below the converging 50-day and 200-day MAs on Monday. The Miners also closed below the lower daily cycle band. This ends the daily uptrend and begins a daily downtrend.
Both markets tested support — Stocks held. The Miners didn’t.
The support levels told us where to look. The subsequent price behavior told us whether the interpretation deserved our confidence.
Cycle Alignment
Stocks: Daily uptrend; support held at the 10-day MA.
Miners: Daily downtrend; bearish follow-through broke key support.
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