Cycle Trading

Twice before stocks broke out above the upper trend line.

And both times saw stocks close back below the upper trend line.

At 28 days, stocks are two days shy of their timing band for a daily cycle low. Closing below the 10 day MA on Thursday should send stocks into a daily cycle decline and a close below the blue trend line should be a hard stop. But if stocks can form a bullish reversal above the upper trend line then the bubble scenario is on the table.