Short Term Primary Cycle
Fridays strong move up and the break of the upper valid trend line likely suggests the primary cycle has completed a low and has turned up entering the accumulation (beginning) phase of the cycle.
Long Term Major Cycle
This new information does not change the analysis of the Major cycle in our previous post. The Major Cycle is within it’s distribution phase and is topping-out. As the Major Cycle progresses into the Mark-down phase this will oppose the upward momentum of the primary cycle so, again any upward movement in this current primary cycle is likely to be moderate. We continue to watch the lower trend line which can now be adjusted given the recent low of the primary cycle.