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Independent Analyst
On Monday we discussed how stocks are rallying out of a half cycle low and following the market leaders higher. The Semi's provided more leadership on Thursday.
The Semi's have fully recovered from their dip into their half cycle low. On Thursday, the Semi's began a breakout from their all time highs.
The Advance/Decline Line has also broke out to a new daily cycle high. And these are bullish signals for the general market.
Thursday was day 18 for the daily equity cycle. Stocks closed above the 10 day MA and tested the 50 day MA. We should see stocks follow the semi's higher. A break above the day 11 high of 2789.15 would form a higher high and assure us of a right translated daily cycle formation.
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