Cycle Trading

Stocks have been consolidating in a narrow range for the past 6 days.

Stocks have been stair-stepping higher, consolidating in order to allow the 10 day MA to catch up to price, and then star-stepping higher some more. Thursday was day 51 placing stocks deep in their timing band for a daily cycle low. At this point we would need to see a close below the 10 day MA and some bearish follow through to signal the daily cycle decline.

Until that happens, then the break out of the megaphone pattern will continue to advance.