Friday 3/4/16

Price yesterday again made a higher low, high and close versus the prior day as we continue on the upside of the multi-week cycle.  Price thus far today has again opened above its daily pivot and has made a higher high.  As has been mentioned numerous times lately, the further overdue the MW high becomes, the more likely it is that the slight hitch we saw in the MD MA in February was a a brief pullback into a MW low.  However, a similar relentless move happened into the January MW low, which was 24 days after the prior MW low.  Thus far we are 24 days from the prior MW high, so price may still find its MW high today or Monday.

 

Regardless of whether price saw a very bullish muted MW low in February or is still overdue to see that low, the move out of the February multi-month low has greatly improved the bullish argument for stocks. The pink MM MA is starting to curl up, which is a clue that the multi-year low has been seen and we are on the upside of the multi-year cycle.  It is important to note that it is far more important for this to happen on the weekly chart (and fairly conclusive on the monthly chart), but the occurrence on a daily chart is still a strong hint that the cycle has turned.
Even if we see a correction into a MW low start shortly, price is now above all higher timeframe pivots and MAs that should provide support to see a higher MW low.

 

 

 

The hourly chart shows price yesterday again finding support for its 24Hr low on the daily pivot and moving higher.  It appears that a 24Hr high was seen in overnight trading followed by another 24Hr low on daily pivot support several hours ago.  Price finding support on the daily pivot or 24Hr MA is classic behavior of price on the upside of the multi-day cycle.  We are in the timeframe to see a MD high, so it is likely that the next 24Hr high (projected for Sunday evening) will also be a MD high.  I am also more wary during periods where the MD high is overdue that a half-span shift could occur, which in this case would result in a late morning 24Hr high.  Until the gold Session MA fails to provide support, however, we must assume that price is still on the upside of the daily cycle.  Until the 24Hr MA or daily pivot fails to provide support, we must assume that price is still on the upside of the MD cycle.