Cycle Trading

Bonds began to close above their upper daily cycle band in March to establish a daily uptrend.

While bonds are in an uptrend, they are currently seeking out their daily cycle low. Bonds printed their lowest point on Tuesday, day 34. That places bonds deep in their timing band for a DCL. At this point we are looking for a swing low and a break above the declining trend line to confirm a new daily cycle. A break above 122.14 will form a daily swing low. As long as bonds do not close below their lower daily cycle band they will remain in their daily uptrend.

Stocks are also in a daily uptrend.

Monday was daily 24 for the daily equity cycle. That places stocks 6 days shy of their timing band for a daily cycle low. Gaps are beginning to develop that will likely get filled during the impending daily cycle decline. A swing high has already formed off the day 21 peak. A break below 2382.66 would send stocks into their daily cycle decline. A close below the 10 day MA will confirm the daily cycle decline. Stocks will remain in their daily uptrend unless they close below the lower daily cycle band.