Clear & Convincing

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Stocks closed above the declining trend line in a clear and convincing manner today to confirm that stocks are in a new daily cycle.

2 spx daily

And stocks are charging ahead toward their next test which is the declining 50 day MA. If stocks can regain the 50 day MA that will be an early signal that the yearly cycle low has being left behind. I plan to cover this for subscribers in Wednesday’s Mid-Week Update.

Bonds delivered a clear and convincing swing high today.

tlt

The daily bond cycle peaked on Friday, which was day 12. Today bonds formed a clear and convincing swing high that delivered three bearish signals.

1) Bonds closed below the 200 day MA.
2) Bonds closed below the upper daily cycle band.
3) Bonds that closed below the daily cycle trend.

All of which confirms that bonds have entered their daily cycle decline. With bonds being 5 days shy of their timing band for a daily cycle low means that bonds can trend lower for another 5 to 15 days before a daily cycle low prints.

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