Cycle Trading

We were skeptical on Tuesday that only breaking above, but not closing above, the 200 day MA signaled a new daily cycle.

Stocks were unable deliver any bullish follow through following Tuesday. Instead, stocks formed swing high and closed back below the 10 day MA on Wednesday. Stocks then delivered bearish follow through by breaking below the day 37 low on Thursday to extent its daily cycle decline. Thursday was day 44, placing stocks very deep in their timing band for a DCL. Stocks are approaching support from the rising 50 day MA. Stocks are currently in a daily uptrend. If stocks form a swing low above the lower daily cycle band then they will remain in their daily uptrend and signal a cycle band buy signal.