Cycle Trading

Stocks formed a bearish reversal on Thursday.

Thursday was day 37 for the daily equity cycle. That places stocks well within their timing band for daily cycle low. Thursday’s bearish reversal eases the parameters for forming a swing high. A break below 4201.41 will form a swing high. Then a close below the 4150 level will signal the daily cycle decline. Stocks should break below the blue daily cycle trend line in order to form their DCL.