Cycle Trading

Stocks printed their lowest point on day 26, placing them in the early part of its timing band for a DCL.  Thursday’s bullish reversal saw stocks also close above the 10 day to signal that day 26 was the DCL. But stocks ran into resistance at the declining trend line on Friday and ended up closing back below the 10 day MA and the June DCL.

Stocks rallied on Monday and regained the 10 day MA along with closing above the June breakdown level. Stocks will need to close above the declining trend line in order to label day 26 as the DCL.