Cycle Trading

Stocks once again delivered a sell signal.

Editor’s note: Tonight’s report will seem very similar to last night’s report.

Tuesday was day 22 for the daily equity cycle. The new high on day 22 assures us of a right translated cycle formation. However Tuesday was the third day in a row with a large Selling on Strength number being printed.

Over 635 million is Selling on Strength printed on Friday. On Monday stocks printed 410 million more Selling on Strength. Stocks then printed an additional 776 million Selling on Strength on Tuesday. The over 1.7 billion in Selling on Strength over the past three days continues to signal that smart money is selling into the break out.