The First Domino ???

00

Stocks printed a bullish reversal today. A break above 2081.30 will form a swing low.

spx

Tuesday was day 17 for the daily equity cycle. Stocks managed to close above the lower daily cycle band, therefore they remain in a daily uptrend. A break above 2081.30 would form a daily swing low and indicate a potential half cycle low has formed.

However, a close below the lower daily cycle band would signal an end to the daily uptrend. The banking index is signaling trouble ahead.

zb

The banking index closed below both the lower daily cycle band and the 50 day MA on Monday to signal that it has entered an intermediate decline. On Tuesday the banking index broke below the previous daily cycle low. This forms a failed daily cycle which confirms an intermediate decline for the banking sector.

The banks could be the first domino to fall.

Advertisements

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