Cycle Trading

Stocks closed below the daily cycle trend line on Tuesday.

We discussed on Monday how stocks formed a swing low to trigger a cycle band buy signal. Stocks negated that buy signal on Tuesday by forming a swing high and closing below the daily cycle trend line. Tuesday was day 27, placing stocks in the early part of its timing band for a DCL. If stocks deliver bearish follow through and close below the 200 day MA that will signal the daily cycle decline. Stocks are currently in a daily uptrend. Stocks will remain in its daily uptrend unless they close below the lower daily cycle band.