Stocks dropped over 4% on Tuesday to close below both the 50 day MA and the 10 day MA. They went on to print lower low on Thursday.
Stocks closed above the declining trend line on Friday to seemingly confirm the new daily cycle. However, Tuesday’s big sell off saw stocks close below both the 50 day MA and the 10 day MA. Since the rally out go the day 54 low did not manage to turn the 10 day MA higher, along with the bullish divergence in the oscillators, makes it likely that stocks are extending their daily cycle decline. An undercut of the day 54 low followed by a reversal and recovery of the 3886.75 level would signal an undercut DCL.
Cycle Trading 
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