Clarity

0

We discussed on Tuesday whether or not June 9th marked a daily cycle low. Today’s rally has provided some clarity.

spx

The recent volatility had obscured our daily cycle count making it uncertain if day 28 represented an early daily cycle low or a half cycle low. What is certain is that stocks peaked on May 20th and began a daily cycle decline. Stocks closed below the upper cycle band on May 26 and continue to decline. Stocks broke below the lower cycle band and printed their lowest point last Tuesday, June 9th. Stocks rallied out of the June 9th low but was turned back by the declining cycle trend line. However, the clear and convincing break of the declining cycle trend line confirms today as day 7 of a new daily cycle.

Advertisements

One thought on “Clarity

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s