Cycle Trading

Stocks backtested the 3940 level on Monday.

Monday was day 17 for the daily equity cycle. A break above the day 9 high of 3983.87 will shift the odds towards a right translated daily cycle formation.

However, we need to be mindful of the bearish divergences developing the oscillators. They are a warning of a pending daily cycle decline.

A close below the 3940 level would signal the daily cycle decline.