Cycle Trading

Stocks rallied on Tuesday. But despite stocks closing higher for the day, they still delivered a bearish signal.

Stocks printed 511 million in Selling on Strength on Tuesday. Stocks tend to cluster large Selling on Strength numbers like this prior to a cycle decline. This also aligns with our longer, intermediate cycle framework calling for stocks to decline into an intermediate cycle low. A break below the solid blue trend line should send stocks into their final decline into their intermediate cycle low.