Indices rose on the day with momentum and short term cycles that expectedly began turning up. They ended the day right at their resistive 30 day averages (for the Dow it was also its 5 DMA), but based on the lack of selling into the close, we are likely to see some follow through with that line of resistance surpassed today.

That would correlate with the still rising shorter term cycles. Both the 6.5 and 10 day are starting to rise on our Filtered charts, and our regular Forecast charts both show they are in their advancing phase.

From here, it becomes important to see whether the move is going to be joined by a rising intermediate cycle, or whether we'll have a few days where the intermediate cycle simply moves sideways.

If so, that could be a signal of a further intermediate drop, similar to what we had after the 6/25 - 7/1 sideways move. Then, indices found support at their 50 day moving averages but never gained enough strength to vault above their 30 DMA on a closing basis.

Since so many technicians watch that 30 DMA, it's critical that it be reclaimed quickly or traders tend to start selling into the stalled action.

I am still long on this short term up trend.

I have a first level stop on the DDM at the center line of the Donchian channel on a 30 minute chart, and at the center channel line on the 60 minute chart. Should we see some extended upside on the short term today, where the 5 DMA is exceeded and starts to rise, I will begin to watch that as a third level for my stops.

In essence, whichever of those lines is highest is my first stop level, and whichever is lowest is my last.

As you can see, short term (yellow) and momentum (cyan) lines are pointing up today. Play it long with stops as described.