After breaking out to new all time highs on Tuesday, stocks backtested the breakout level on Wednesday.
After emerging from the ICL stocks have begun closing above the upper daily cycle band indicating that they are in a daily uptrend. Forming a swing low above the upper daily cycle band signals a continuation of the daily uptrend and triggers a cycle band buy signal.
The decline into the ICL has stretched the ‘elastic band’ lower. If stocks deliver bullish follow through on the backtest of the 4545.85 level then that could trigger a melt-up phase.