Cycle Trading

The intermediate equity cycle peaked last week, which was week 28. This week has delivered some bearish signals, signaling an intermediate cycle decline is imminent.

Stocks have formed a weekly swing high. At week 28, the intermediate cycle is getting stretched and that makes this likely that this swing high will lead to an intermediate cycle decline.

Stocks also broke below the lower intermediate cycle trend line. An intermediate trend line break is another signal of an intermediate cycle decline.

A failed daily cycle is usually present during an intermediate cycle decline. Stocks will need to break below the previous daily cycle low of 2045.50 to form a failed daily cycle and fulfilling its cyclical duties.