Cycle Trading

Stocks formed a swing high on Thursday.

Thursday was day 38 for the daily equity cycle. That places stocks in their timing band for a daily cycle decline. And with stocks coming up at resistance at the December monthly high of 2800.18, Thursday’s swing high could send stocks to seek out their daily cycle low.

However stocks have been closing above the upper daily cycle band which indicates that stocks are in a daily uptrend. The convergence of the 10 day MA with the 200 day MA could offer support for stocks to form a swing low. If a swing low forms above the upper daily cycle band that would be a bullish development triggering a cycle band buy-signal.