Stocks continued trending higher on Monday and tested the declining 50 day MA.
Stocks need to break convincingly above the 50 day MA and close above the upper daily cycle band for this daily cycle to gain some traction.
The Transports appear to be gaining some traction.
We discussed on Friday how the Transports were getting in gear by confirming their new daily cycle. Well the Transports are now starting to roll.
Monday was day 6 for the daily cycle and the Transports broke convincingly above the declining 50 day MA. They also closed above the upper daily cycle band. Closing above the upper daily cycle and ends the daily downtrend and signals the beginning of a new daily uptrend. And now that the Transports are rolling they should lead the way for stocks to follow.