Cycle Trading: Looking for Evidence of a New Daily Cycle
|We discussed on Thursday and Saturday how stocks found support at the 200 day MA to possibly initiate an early DCL. Stocks delivered some bullish follow through on Monday but there is still more work to do before stocks can confirm that they have begun a new daily cycle.
First: Evidence that stocks were declining into a DCL.
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Closed below the day 10 MA
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Turned the 10 day MA lower
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Closed below the daily cycle trend line
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Delivered a bearish TSI Zero Line Crossover
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Closed below the lower daily cycle band.
Second: Evidence that day 23 hosted the DCL
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Swing Low off of support at the 200 day MA
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Closed above the 10 day MA
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Closed above the declining trend line.
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Delivered a bullish TSI Zero Line Crossover
Had all of this occurred while stocks were in their timing band for a daily cycle low then we would be labeling Thursday as the DCL.
At this point if stocks can break above the 50 day MA to close above the upper daily cycle band then that would:
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End the daily downtrend.
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Begin a new daily uptrend.
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Convince me that day 23 hosted the DCL.
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