Cycle Trading

Stocks rallied for 1.19% on Monday to break out to a new daily cycle high.

While stocks broke out to a new daily cycle high on Monday, they have consistently been rejected by the 50 week MA since April. Stocks would need to close above the declining 50 week MA before any trending move can be sustained.

At 15 weeks, stocks are nearing their timing band for an intermediate cycle decline. If the resistance at the 50 week MA holds, stocks will likely decline into their ICL. And stocks would then have a better chance at sustaining a trending move if they break above the declining 50 week MA soon after emerging from the ICL as oppose to doing so on week 15.