Cycle Trading: Bullish Hammer
|Stocks are forming a bullish hammer this morning.
Tuesday is day 45 for the daily equity cycle. Stocks in the later part of its timing band for a daily cycle low. The bullish hammer that is forming this morning has good odds of marking the daily cycle low. A swing low will signal the daily cycle low. Since stocks printed a lower low this morning, the earliest a swing low can form will be on Wednesday. So while stocks should begin a new daily cycle, I have concerns for stocks for the longer term intermediate cycle, which I plan to discuss in the Mid-Week Update.
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