When stocks recovered into the close on Monday, that helped to ease the parameters for forming a swing low. If stocks then formed a swing low on Tuesday that would have indicated a runaway move. Instead, stocks closed 1.65% lower on Tuesday. That takes the runaway move off the table and confirms the daily cycle decline.
Tuesday was day 41 for the daily equity cycle, placing stocks in their timing band for a daily cycle low. While stocks closed lower on Tuesday, they still remained above the lower daily cycle band. If stocks can form a swing low above the lower daily cycle band then stocks will remain in their daily uptrend.
If stocks break lower from here, then the daily cycle decline could turn into a more serious intermediate cycle decline. One of the things that I am watching for is to see if stocks close below the lower daily cycle band. A close below the lower daily cycle band would end the daily uptrend and begin a daily downtrend. It would also indicate that stocks have begun an intermediate cycle decline.
I plan to cover the status of the intermediate equity cycle in Wednesday’s Mid-Week Report.
This week I am running a 6 week trial subscription special. The 6 week trial subscription will give you full access to the premium site which includes a complete breakdown of the dollar’s daily, weekly, yearly, 3 year and 15 year super cycles. The trial subscription also includes:
1) The Weekend Report, which is posted usually Saturday mornings. It discusses Dollar, Stocks, Gold, Miners, Oil, & Bonds in terms of daily, weekly and yearly cycles – Which includes the Likesmoney Cycle Tracker.
2) The Mid-Week Update. Posted on Wednesday’s is a review of the daily and weekly charts for the above mentioned asset classes.
3)The Weekend Updates take a look of the daily & weekly charts of the Dax, GYX, NATGAS & XLE.
4) Weekly Update of the Bullish Percentile Bingo
5) Frequent updates of my proprietary FAS Buy/Sell Indicator
The goal of the Weekend Report is to develop an on-going framework of expectations using cycle analysis.
For the Likesmoney 6 week trial subscription offer click here.
Cycle Trading 
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