Cycle Trading

Stocks broke out to a new daily cycle high on Monday but then went on to print a bearish reversal.

A new on day 22 shifts the odds towards a right translated daily cycle formation. That aligns with stocks currently being in a daily uptrend. However, stocks are now stretched above the 10 day MA. Stocks may need to consolidate to allow the 10 day MA to catch up to price. A break below the 3911.79 level can be used as a stop. If stocks find support at the rising 10 day MA and break back above the 3911.79 level, then that could be used to go long once again.