Cycle Trading

The cycle band buy signal was negated on Thursday.

On Wednesday stocks formed a swing low above the upper daily cycle band. This signaled that stocks remain in a daily uptrend and delivered a cycle band buy signal.

But that changed on Thursday.

Stocks formed a swing high on Thursday which negated the cycle band buy signal. It also signaled that stocks are still declining into their daily cycle low. The swing high also allows us to construct a declining trend line. So now a swing low accompanied by a break of the declining trend line will confirm the new daily cycle.