Stocks peaked on day 12. At that point stocks became stretched above the 10 day MA and needed to allow the 10 MA to catch up to price. Stocks declined and tagged the 10 day MA on Thursday then formed a swing low on Friday. If stocks delivered any bullish follow through we would have labeled Thursday as a half cycle low. Instead, stocks delivered a bearish surprise on Monday.
Stocks broke lower on Monday, closing below the 10 day MA and the daily cycle trend line. With a peak on day 12, this sets stocks up for a potential left translated daily cycle decline. Stocks could still form a bullish reversal off of support from the 50 day MA to form a half cycle low. But a close below the 50 day MA will signal the daily cycle decline.
Cycle Trading 
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