Cycle Trading

The summer mark down for stocks have begun.

This is week 20 for the intermediate equity cycle. That places stocks in their timing band for an intermediate cycle low. Stocks formed a weekly swing high last week and are delivering bearish follow through this week. The best sale prices will coincide with the intermediate cycle low. Stocks should break below the weekly trend line and manage to turn the 10 week MA lower before it prints its intermediate cycle low.

Monday was day 36 for the daily equity cycle. So stocks are also in their timing band to print a daily cycle low. Stocks could print a DCL this week. If so then stocks will likely need one more daily cycle to break below the weekly trend line and to turn the 10 week MA lower to complete the intermediate cycle decline.