Stocks were rejected by the 10 day MA and ended the day closing below the 50 day MA. Despite stocks being down 1.23% on Tuesday, I am beginning to get bullish.
Tuesday was day 40 for the daily equity cycle, which places stocks right in the heart of their timing and for printing a daily cycle low. There is a bullish divergence developing on RSI which often precedes a rally. Ideally we will see a narrow range day that breaks the August resistance level. Stocks are in a daily uptrend. If stocks form a swing low above the lower daily cycle band then stocks will remain in their daily uptrend and trigger a cycle band buy signal.
Cycle Trading 