Cycle Trading

Bonds lost the 50 day MA on Tuesday.

Not only did bonds lose the 50 day MA, they also closed below the lower daily cycle band to confirm the daily cycle decline. Tuesday was day 12 for the daily bond cycle. The peak on day 6 assures us of a left translated daily cycle formation. A break below the previous daily cycle low of 123.69 will form another failed daily cycle confirming the continuation of the intermediate cycle decline. And with bonds on only day 12 for their daily cycle, they could trend lower for the next 5 to 10 days before printing their DCL.