Stocks formed a swing high on Tuesday, triggering our stops. Here are 2 scenarios to consider.
Tuesday was day 26, which is 4 days shy of the timing band for a DCL. Scenario # 1 would be for stocks to deliver bearish follow through and close below the 10 day MA to signal the daily cycle decline.
Scenario 2 would be for stocks to form a swing low. Stocks have been 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. If stocks form a swing low above the lower daily cycle band, that would signal that stocks will remain in their daily uptrend and trigger a cycle band buy signal. A break above 4416.38 forms a daily swing low.
And if stocks form a swing low and deliver bullish follow through, that could kick off a melt-up phase.
Cycle Trading 
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