Stocks printed their lowest point on Monday following the day 34 peak. Monday was day 53 for the daily equity cycle. That places stocks late in their timing band to print a daily cycle low.
Stocks nearly recovered all of Friday’s drop. Closing near the highs of the day also has eased the parameters for forming a daily swing low. A break above 2163.30 will form a daily swing low. Then a close above the 10 day MA should allow us to label Monday as the daily cycle low.
Stocks did close below the lower daily cycle band on Friday, indicating an end to the daily uptrend. But since stocks have not closed below the lower weekly cycle band they still remain in a weekly uptrend. Stocks will continue in their weekly uptrend unless they close below the lower weekly cycle band.