Stocks are in their timing band to seek out a daily cycle low. Stocks have printed 2 swing highs but has failed to deliver any bearish follow through into a daily cycle decline.
On Wednesday stocks printed a bullish reversal that regained the 10 day MA. A break above Monday’s high of 2193.81 would suggest that stocks are beginning a runaway move. This is characterized by small corrections of 15 to 60 points as stocks continue to advance.
Stocks continue to close above the upper daily cycle band, indicating a daily uptrend. At this point we need to see a close below the upper daily cycle band to signal that stocks are moving into a daily cycle decline.