Let Your Winners Run – NYSE Cycle is Bullish
For the past week, we have commented on the potential change in the NYSE trend or “cycle” during the LIVE broadcast. All of the indices have turned to a bullish cycle on the daily timeframe. In addition, most SPDR sectors have turned higher, as earnings start for the second half. In addition, fear is dissipating and VIX is dropping as a result.
NYSE Bullish Cycle
The NYSE shows price accelerating to the upper trendline in this triangle pattern. Volume is building, as the cyc;e turns bullish. This change should last for a few more days if we use previous cycle durations as a reference. Since this cycle dipped below the zero-line, there is potential for a longer trend unfolding before price action reaches extremes closer to the red zone.
NYSE New Highs Confirming
It is best when we use confirming indicators. In this case, we typically use new highs versus new lows and their trend as a barometer. If we are to be more bullish we want to see the cycle trending higher. Histogram bars should be green and above the zero line. The moving average should echo the current bullish cycle above.
NYAD Breadth is bullish and climbing. Most stocks are moving higher as the NYHL histogram confirms.
Price action is heading toward the upper Bollinger band, indicating it might pierce the upper trend line today. If this does happen we will trail our stops and let our winners run!
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