Cycle Trading

Stocks printed a another lower low on Tuesday.

Tuesday was day 33 for the daily cycle, placing stocks in their timing band for a DCL. The 10 day MA has turned lower and stocks tagged the 50% fib level on Tuesday, which usually needs to occur before we can expect a DCL to form.

 A swing low and recovery of the 50 day MA will signal the new daily cycle. Stocks are currently in a daily uptrend. If stocks manage to form a swing low above the lower daily cycle band that would indicate that stocks will remain in their daily uptrend and trigger a cycle band buy signal. A break above 4471.00 would form a daily swing low.