Stocks broke bullishly out of consolidation on Wednesday then delivered bullish follow through on Thursday. We will use this to label day 36 as the DCL.
Breaking out of the 7 week consolidation delivers bullish expectations. Stocks are currently in a daily uptrend. Any bullish follow through will indicate a continuation of the daily uptrend and signal a cycle band buy signal. However, stocks printed a bearish candle on Friday. Stocks did get a bit stretched above the 10 day MA and may need to consolidate to allow the 10 day MA to catch up to price. But a swing high and close back in the consolidation level would indicate a false breakout and set stocks up for a left translated daily cycle formation.
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