Cycle Trading

Stocks plunged on Wednesday, being down over 3.4% at one point during the day. Then stocks rallied into the close pairing down the loss to 1.12%

Wednesday was day 43 for the daily equity cycle. The reversal into the close has eased the parameters for forming a swing low. Stocks are deep in its timing band to print a daily cycle low. A swing low and declining trend line break will signal a new daily cycle. A break above 1876.18 forms a swing low.

Stocks appear to be in the process of forming a bullish weekly reversal which will ease the parameters for forming a weekly swing low. With stocks in their timing band for an intermediate low, a new daily cycle could also signal a new weekly cycle. Following a weekly swing low, a weekly close above the lower weekly cycle band will signal a new intermediate cycle.