Cycle Trading

Stocks delivered a sell signal on Thursday.

With stocks in their timing band for both an intermediate and yearly cycle low, the odds were good that the late May cycle low would mark a new weekly and yearly cycle low. So if day 60 was the intermediate/yearly cycle low then the first daily cycle out of that low should right translate. However stocks formed a swing high on Thursday. And with a potential peak on day 8 — that would indicate a left translated daily cycle formation.

Stocks are currently in a daily downtrend. Forming a swing high below the upper daily cycle band indicates a continuation of the daily downtrend and signals a cycle band sell signal.