Cycle Trading

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The daily equity cycle peaked on day 13 and then formed a swing high on day 14. Even though stocks posted a gain today there are signals that some type of decline is imminent.

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The first daily cycle of a new intermediate cycle should form as a right translated cycle, peaking after day 20. Currently, stocks are testing the daily cycle trend line. A trend line break here should send stocks into a half cycle low.

It appears that Biotech has already begun a mid-cycle decline.

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Biotech’s daily cycle peaked on day 12 and formed a swing high on day 13. The bearish follow through today, day 15, shows a clear and convincing trend line break confirming a cycle decline with the broader market likely to follow.

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Stocks also printed 305 million on Selling on Strength. This further supports the notion that stocks are poised for at least a mid cycle decline.