Stocks breached the 200 day MA and then printed a bullish reversal today on high volume. Stocks appear to be leaving behind a daily cycle low.
It is looking more and more like day 51 did not host a daily cycle low. Instead an early 28 day daily cycle low printed on May 6th. And day 51 was actually day 23 and a half cycle low. Continuing with that daily cycle count would make today day 42. That would place stocks in their normal timing band for a daily cycle low, printing a bullish reversal on high volume. A break above 2083.74 forms a swing low and signals a new daily cycle.
And a new daily cycle could also signal a new intermediate cycle.
The stocks breached the 50 week MA the last time an intermediate low formed in October have done so again this week. And with the intermediate cycle being stretched at 38 weeks it is likely that stocks are forming an intermediate low this week off the support of the 50 week MA. Since stocks printed a lower low this week we will need to wait until next week for a weekly swing low to form. And a weekly swing low would provide confirmation that today is day 42 of the daily equity cycle.