Stocks formed a daily swing low on Thursday.
Stocks printed their lowest point on day 49, placing them deep in their timing band for a DCL. Stocks formed a swing low and a closed above the 10 day MA to signal the new daily cycle. Long positions can be entered based on the swing low with a stop being set below the day 49 low.
The decline into the day 49 low caused the 10 day MA to decline sharply. Stocks may need to consolidate to allow the 10 day MA to flatten out before it can turn higher. The next concern is closing above the 50 day MA.
The real challenge will be to close above the declining 200 day MA. Stocks lost the 200 day MA back in May and has been rejected by it ever since. If stocks can close above the 200 day MA and break above the previous daily cycle high of 4100.96, then stocks would have formed a higher low and a higher high — the definition an uptrend.
Cycle Trading 
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