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.
Even though stocks closed lower on Tuesday and Wednesday, stocks did not break below Monday’s low. With a strong bullish divergence that is developing on the True strength Indicator along with stocks being late in their timing band for a daily cycle low makes it look as if Monday hosted the daily cycle low. A break above 2163.30 will form a daily swing low to signal a new daily cycle.
The NASDAQ Composite has already formed a daily swing low.
The NASDAQ also printed its lowest point on Monday following its daily cycle peak. After consolidating Tuesday and Wednesday the NAS broke higher on Thursday to form a daily swing low which signals a new daily cycle. The NAS also managed to close above the upper daily cycle band. This indicates that the NASDAQ is re-estblishing its daily uptrend and is leading stocks out of their daily cycle correction.