Stocks Ready To Rally?

Stocks formed a swing low on Wednesday and printed a bullish reversal on Thursday. The previous 2 times that stocks tested the 50 day MA, dip buyers were rewarded with a continued rally.

Stocks printed their lowest point on Tuesday, day 17, which is too early for a DCL. But if stocks can close back above the 10 day MA then we will label day 17 as the half cycle low. Stocks are currently in a daily uptrend. Forming a swing low above the lower daily cycle band signals the continuation of the daily uptrend and triggers a cycle band buy signal, with the stop being a close below the 50 day MA.

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