Cycle Trading

After breaking out to a new intermediate cycle high, stocks printed a huge bearish reversal on Monday.

Stocks opened on Tuesday by forming a swing high and breaking below the accelerated trend line and the 10 day MA, which in real time looked as if stocks were beginning their daily cycle decline. Then stocks rallied and recovered nearly all of Monday’s loss. If stocks form a swing low off of Tuesdays candle then we will need to adjust the accelerated trend line. And since stocks are in a daily uptrend, if a swing low forms then stocks will remain in their daily uptrend and trigger a cycle band buy signal.