Cycle Trading

Stocks have been in a consolidation box for the past 4 weeks — until Monday.

Stocks are in a daily uptrend that has been characterized by highs forming above the upper daily cycle band and lows forming above the lower daily cycle band — and more recently lows forming above the upper daily cycle band. Which indicate that stocks are beginning a runaway move. So, if stocks close back in the upper consolidation box that could lead to a daily cycle decline. Therefore raise stops to the top of the recent consolidation box.