Pre-Summary
XLE has signaled a new Daily cycle. Now it needs to prove that the turn can change the trend.
XLE broke below the Day 31 low and closed below the 50-day MA on Monday to extend its Daily-cycle decline. Monday was Day 36, placing XLE in its timing band for a DCL.
XLE formed a swing low on Wednesday and delivered bullish follow-through on Thursday. XLE closed above both the 50-day and 10-day MAs, signaling Day 36 as the DCL.
XLE is currently in a daily downtrend. But a close above the upper Daily cycle band will end the Daily downtrend and begin a Daily uptrend.
Cycle Alignment
XLE: Day 36 DCL signaled; new Daily cycle underway, but Daily trend remains down.
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