Cycle Trading

On Monday we observed that stocks formed a swing low and were in their timing band for a daily cycle low.

Monday’s swing low was the first signal that stocks formed a daily cycle low. The next signal arrived on Wednesday when stocks closed above the declining 10 day MA. On Thursday stocks closed convincingly above the declining trend line and the 50 day MA to confirm the new daily cycle.

Stocks has established a daily downtrend as it declined into its daily cycle low. If (when) stocks close above the upper daily cycle band that will end the daily downtrend and begin a new daily uptrend.

I plan to update the status of the intermediate equity cycle in the Weekend Report.