Cycle Trading

Stocks broke out to a new daily cycle high on Monday.

Monday was day 36 for the daily cycle, placing stocks in their timing band for a daily cycle low. The bearish divergence on the oscillators has me suspicious that any breakout will be reversed to send stocks into their daily cycle decline. At this point a close below the 10 day MA will signal the daily cycle decline. And a close below Tuesday’s low of 4118.38 would be a lower low, confirming the daily cycle decline.