Stocks Deliver Bullish Follow Through

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Stocks delivered bullish follow through on Tuesday to confirm that Friday hosted the daily cycle low.

spx daily

Tuesday was day 2 for the daily equity cycle and stocks closed solidly above the accelerated declining trend line. Stocks also delivered a bullish zero line crossover on the True Strength Indicator. While not all TSI bullish zero line crossovers mark a daily cycle low, all DCL’s are accompanied by a TSI bullish zero line crossover. If stocks manage to close above the upper daily cycle band that will indicate an end of the daily downtrend.

The Miners remain in a daily downtrend.

gdx

Tuesday was day 20 for the daily Miner cycle. That places the Miners in their timing band for a daily cycle low. A swing low and a close above both the 10 day and 200 day MA would signal that the Miners have printed a daily cycle low. Then a close above the upper daily cycle band would signal an end to the daily downtrend.

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2 thoughts on “Stocks Deliver Bullish Follow Through

    • We will need to see how the election night volatility shakes out.
      Stocks have set their daily cycle low.
      Stocks are in their timing band for an ICL.
      Since stocks have not broke above the declining weekly trend line.
      So stocks are still searching for their ICL.

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