Cycle Trading: Stocks Form Daily Cycle Low
|Stocks formed a swing low on Tuesday.
Stocks printed their lowest point on Monday, day 59. Only once in the past 16 daily cycles has the cycle count exceeded 59 days so Tuesday's swing low quite likely marks the daily cycle low. There are already 3 levels of confirmation of the daily cycle low. There is a bullish crossover on the oscillators, stocks regained the 200 day MA in a clear and convincing manner, and stocks also recovered the breakdown form the day 45 low. A close above the declining trend line would provide final confirmation of the daily cycle low. I also suspect that stocks have formed a larger degree intermediate cycle low which I plan to discuss in the Wednesday Mid-Week Report.
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