Stocks are in a precarious positions as investors await the outcome of the Federal Reserve policy meeting on Wednesday.
The initial surge out of the day 26 DCL saw stocks get stretched above the 10 day MA and has since been consolidating, which is allowing the 10 day MA to catch up to price. The 10 day MA is about to converge with 50 day MA. With stocks in a daily uptrend, a bullish response to the Fed decision should send stocks higher to form a right translated daily cycle. However, if stocks have a bearish response and close below the converging 10 DMA and 50 DMA, that would set stocks up for a left translated daily cycle formation and a possible failed daily cycle.
Cycle Trading 
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