Cycle Trading

Stocks undercut the day 54 on Friday.

While stocks undercut the day 54 low on Friday, they also formed a bullish reversal. The bullish reversal eases the parameters for forming a swing low. A break above 3880.95 will form a daily swing low. Then a close back above the 10 day MA will have us label day 62 as the DCL. Stocks are still in a daily downtrend. They will remain in their daily downtrend until the can close above the upper daily cycle band.

If day 62 is the DCL, then stocks will be beginning the 2nd daily cycle for the intermediate cycle. I have some concerns once stocks confirm the new daily cycle, which I discuss in the Weekend Report.