Cycle Trading

Stocks formed a daily swing high on Monday.

Stocks did get a bit stretched about the 10 day MA on Friday and may be simply allowing the 10 day MA to catch up to price. However a close below the breakout level would be a bearish signal. At 24 days, stocks are approaching their timing band for a daily cycle decline. If stocks deliver bearish follow through and break below the daily cycle trend line that will signal the daily cycle decline. Stocks are currently in a daily uptrend. They will remain in their daily uptrend unless they close back below the lower daily cycle band.