Cycle Trading

Stocks broke lower again on Thursday to close below the 50 day MA.

Stocks also closed below the lower daily cycle band on Thursday. Closing below the lower daily cycle band ends the daily uptrend uptrend begins a daily downtrend, giving us the expectation of lower highs and lower lows. The peak day 11 sets stocks up for a left translated daily cycle. A. break below the previous daily cycle low of 3694.12 will form a failed daily cycle.

The Nasdaq formed a failed daily cycle on Thursday. In the Weekend Report we will look at the intermediate (weekly) cycle in order to develop expectations for the intermediate cycle low.