Cycle Trading

Stocks formed a bullish reversal on Friday. We discussed here that if stocks formed a swing low and closed back above the 10 day MA that the bubble scenario was on the table. And stocks did form a swing low on Monday …

However stocks did not close above the 10 day MA. At 30 days, a close below the blue trend line will signal that a daily cycle decline is in progress. But, a bullish reversal off of the blue trend line will still keep a bubble scenario on the table. Stocks are in a daily uptrend and will remain so unless they close below the lower daily cycle band.