Stocks closed lower again on Monday.
The peak on day 7 indicates a left translated daily cycle formation. A break below the previous daily cycle low of 4222.62 will form a failed daily cycle to extend the intermediate cycle decline. However stocks formed a bullish reversal on Monday.
Stocks formed a bullish reversal on Monday at the 61% fib level. So it is possible to see a bounce here, which would likely make day 15 a half cycle low. We would need to see stocks close above the 50 day MA before we could have any confidence that a rally can be sustained. Stocks are currently in a daily downtrend and will remain so unless they close back above the upper daily cycle band.
Cycle Trading 
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