Intermediate Cycle Low

Stocks broke below the previous daily cycle low on Monday. Breaking below the previous daily cycle low forms a failed daily cycle and confirms the intermediate cycle decline.

Stocks are on week 29 for the intermediate cycle. This places them very deep in their timing band for an intermediate cycle low. The odds are very good that once a daily cycle low forms, that it will also mark the intermediate cycle low as well.

Stocks are currently in a weekly uptrend and are already in the process of forming a bullish weekly reversal. If stocks form a weekly swing low above the lower weekly cycle band then they will remain in their weekly uptrend and trigger a weekly cycle band buy signal.

2 thoughts on “Intermediate Cycle Low

  1. Hi,

    Just curious are you expecting a reversal this week? What’s the key level to watch out on Dow, Nasdaq and S&P

    Thanks Sravan

    Sent from my iPhone

    >

    • sravan,
      Yes, I am expecting a reversal this week.
      I report on the S&P and generally speaking the other indices tend to follow suit.
      Monday was day 21 – which is early for a DCL.
      With that in mind, there are progressive levels of confirmation of a DCL.
      First, we need to see a swing low. A break above 4402.92 forms the daily swing low.
      Since the 10 day MA is converging on the 50 day MA, a close above the converging MA’s will have me label day 21 as the DCL. Then a break above the declining trend line will provide more confirmation of the DCL. Depending on your risk tolerance and trading plan, anyone of those levels can be an entry point.

      LM

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