Cycle Trading

Stocks

The daily equity cycles made a daily cycle low on Wednesday, day 45.

Then a swing low was formed on Thursday.
A break of the declining trend line would confirm a new daily cycle.
A new daily cycle could also mark a new intermediate cycle bottom.

The intermediate cycle peaked on week 27 and has been chopping around for the past 5 weeks.
Keep in mind that the formation of an intermediate cycle bottom can be volatile.
But this volatility is coiling up energy that can be the fuel for another surge higher.

Consider the put/call ratio:

The put/call ratio has reached a level that is either near or has marked the bottom.

The monthly equity chart shows back-to-back red monthly candles.

Generally, two red monthly candles have lead to a yearly cycle decline.
The current monthly chart does possess a swing high and monthly trend line break.
A reversal by the end of the month could mean that the yearly cycle is setting a new monthly trend line.