Trend Line Support

Stocks formed a swing high on Thursday.

The intermediate equity cycle is normally comprised of 2 – 3 daily cycles. Stocks are currently on their 3rd daily cycle. So we need to be alert to the swing high potentially sending stocks into a daily cycle decline. However stocks have been in a daily uptrend characterized by highs forming above the upper daily cycle and — since the June DCL — lows forming above the the upper daily cycle band. Stocks formed a bullish reversal off the tend line support on Thursday. If stocks form a swing low, that will indicate a continuation of the daily uptrend and trigger a cycle band buy signal. A break above 4369.02 will form a daily swing low.

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