Cycle Trading

Stocks lost both the 50 day MA & the 10 day MA on Wednesday.

But the 2680 million Buying on Weakness over the past 2 days indicates that stocks are declining into an early half cycle low. And I believe that the 2 huge BOW days is a continuation of a pattern.

There was a significant clustering of BOW days prior to the day 58 low. I think that the BOW days these week continues this pattern. To illustrate this I want to show you a similar clustering of BOW days that occurred in 2016.

The Buying on Weakness days totaled up to 5043 million between 8/25/16 and 11/04/16.

These clusters of Buying on Weakness days typically foreshadow a major cycle low.