Stocks closed convincingly above the converging 10 day MA and 200 day MA on Monday. They delivered bullish follow through on Tuesday, further confirming that day 33 was the DCL.
Stocks should break above the declining trend line as they rally out of their daily cycle low. However, the drop into the day 33 DCL caused the 10 day MA to drop sharply. There is a good possibility that stocks will need to consolidate between the 200 day MA and the 50 day MA to allow the day 10 MA to turn higher. The daily cycle will not likely gain traction until the 10 day MA turns higher and stocks close above the 50 day MA.
Cycle Trading 
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