I saved my draft report to proof read later. then I forgot to post it 🙂
Stocks reversed bullishly off the 50 day MA today suggesting that stocks may have formed a daily cycle low.
Stocks peaked on Friday, which was day 30. Stocks formed a swing high on Monday, losing the day 10 MA in the process. Tuesday stocks broke below the daily cycle trend line confirming the daily cycle decline. At day 33, stocks are in their timing band to print a daily cycle low. The bullish reversal today has eased the parameters for forming a swing low. A break above 1999.79 forms a swing low.
But confirmation of a new daily cycle here is not a foregone conclusion. The daily equity cycle can extend to day 45. So there is still time for stocks to go lower. Also, stocks printed a big 470 million Selling on Strength today. In order to touch all the bases we will need to see break to new highs to confirm the new daily cycle.