Cycle Trading

Stocks closed lower on Monday.

Monday was day 24 for the daily equity cycle, which places stocks being 6 days shy of its timing band for a daily cycle low. And we are starting to see bearish signals develop. Stocks formed a swing high on Friday, They followed up with closing lower on Monday. Also the oscillators have developed bearish divergences and delivered bearish crossovers. But with stocks being in a storing daily uptrend we will need to see a close below the 10 day MA to signal the daily cycle decline.