Setting Course

Last Monday, March 27th, stocks printed their lowest point following the day 40 peak. They have since formed a daily swing low and regained the 10 day MA to signal that stocks have begun a new daily cycle.

Monday was day 5 for the new daily cycle. And because this is the third daily cycle for the current intermediate cycle we need to be suspicious off a possible left translated cycle formation that will lead to a failed daily cycle and an intermediate cycle decline.

spx tline

We are still waiting on a break of the declining (blue) trend line to provide final confirmation that day 58 hosted the DCL. If stocks can form a swing low forms off of Monday’s candle that will allow us to construct the (dashed) daily cycle trend line. At this early stage of the daily cycle stocks should not break below the dashed daily cycle trend line. A break below the dashed trend line will be the warning signal to wait on the sidelines


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