Stocks printed a bullish reversal on Thursday.
Stocks declined after peaking on day 13. Thursday’s bullish reversal has eased the parameters for forming a daily swing low. Thursday’s bullish reversal also allowed stocks to close above the lower daily cycle band, indicating that stocks remain in a daily uptrend. A break above 2079.62 will form a daily swing low. Since Thursday was only day 19, it is too early for this to be a daily cycle low. So if a swing low does form, we will view it as a half-cycle low, which will allow us to construct the daily cycle trend line.
Gold also printed a reversal on Thursday.
Thursday was day 12 for the daily gold cycle. The new high on day 12 begins to shift the likelihood towards a right translated daily cycle formation. But the bearish reversal has eased the parameters for forming a daily swing high. A break below 1280.10 will form a daily swing high. Then a close below the upper daily cycle band will signal that the daily gold cycle is in decline. Despite the bearish reversal, gold continues to close above the upper daily cycle band, indicating a daily uptrend. Gold will remain in a daily uptrend until it closes below the lower daily cycle band.