Cycle Trading

Stocks were rejected by the 200 day MA on Thursday.

Stocks printed their lowest point on Monday, day 36, placing them in their timing band for a DCL. Stocks formed a swing low and closed above both the 50 day MA and 10 day MA on Tuesday. This, in real time, looked like stocks printed their DCL. Stocks still needed to break above the declining trend line and turn the 10 day MA higher for final confirmation of the DCL. Being rejected by the 200 day MA and closing below both the 10 day MA and the 50 day MA indicates that stocks are still in the process of seeking out their DCL. A break below the day 36 low of 4370.30 will signal a continuation of the daily cycle decline.