We discussed yesterday that lack of a failed daily cycle on Monday combined with the 3434 total Buying on Weakness (occurred in shaded area) makes it is likely that June 9th hosted a 51 day, daily cycle low. One of two scenarios can play out here.
One scenario is that stocks could reverse lower and break below June 9th’s intra day low of 2072.14. If that happens then it makes it likely that June 9th was day 23, making today day 28. So, if June 9th’s low is lost, then that also keeps the door open for a break below the early May DCL of 2067.93, which would then form a failed daily cycle.
However, today’s bullish follow through to Monday’s reversal supports the first scenario that June 9th hosted a 51 day, daily cycle low. A break of the declining trend line is needed to confirm this scenario which would make Tuesday, day 5.