Cycle Trading

Stocks formed a swing high on Wednesday then delivered bearish follow through on Thursday.

The peak on day 15 sets stocks up for a potential left translated daily cycle formation. That combined with losing the 200 day MA on Wednesday then the converging 50 day MA and the 10 day MA on Thursday gives us the expectation that stocks have begun their daily cycle decline. However we need to keep an open mind to another possibility.

There is a potential bullish RSI 05 pattern that is emerging. That aligns with stocks currently being in a daily uptrend trend. A swing low and recovery of the converging 10 day MA and 50 day MA will indicate a continuation of the daily uptrend. Then a close back above the 200 day MA would signal a cycle band buy signal.