The daily equity cycle peaked on day 28 and formed a daily swing high on Friday. With stocks in their timing band for a daily cycle decline the swing high signals that the daily cycle decline is beginning.
While stocks broke below the 10 day MA on Friday they ended up closing above it to form a bullish reversal. This is setting up a possible cycle band buy signal. A break above 2782.81 will form a swing low above the upper daily cycle band confirming a cycle band buy signal.
While our cyclical expectation is for stocks to decline into a daily cycle low, the Advance/Decline line is delivering a bullish expectation.
The Advanced/Decline line has clearly broken out to new highs and stocks are likely to follow. So while stocks are in their timing band to seek out a DCL and formed a swing high, if a swing low forms here stocks could be setting up for a trending move.
Cycle Trading 
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