Stocks Need To Turn The 10 Day MA Higher

Stocks are beginning to consolidate along the 50 day MA.

One of the confirmations of a DCL is turning the 10 day MA higher. The decline into the day 21 DCL caused the 10 day MA to turn steeply lower. Stocks may need to consolidate for a few days in order to allow the 10 day MA to flatten before it can turn higher. Then stocks should go on to break above the declining trend line as they rally out of the DCL. Stocks are currently in a daily downtrend. But a close above the upper daily cycle band will end the daily downtrend and begin a new daily uptrend.

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