Swing High & Bearish Divergence

July 19, 2018

Stocks formed a daily swing high on Thursday.

Thursday was day 14 for the daily equity cycle. A swing high on day 14 sets up a potential left translated daily cycle formation. That aligns with our longer term view that stocks are in their timing band for an intermediate cycle decline which we discussed here and here. Stocks are in their 4th daily cycle & which is another reason to expectant intermediate cycle decline. There is a bearish divergence developing on the TSI, which is something that we see a cycle tops. A close below the 10 day MA would signal the daily cycle decline.

3 responses to “Swing High & Bearish Divergence”

ttsden

July 19, 2018

Hi guru.
Do you forecast a minor or major correction to occur.
Many thanks
Tony

Reply
1. likesmoneystudies
  
  July 20, 2018
  
  I am expecting for stocks to begin their intermediate cycle decline.
  An intermediate cycle decline is characterized by a break of the weekly trend line and a failed daily cycle.
  Another characteristic is a close below the lower daily cycle band.
  Should stocks form a swing low above the lower daily cycle band that would indicate that a 5th daily cycle would be needed to complete the intermediate cycle decline.
  
  Reply
ttsden

July 20, 2018

Very much appreciate your prompt reply and views. Thank you kindly

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