Cycle Trading

Stocks broke below the day 32 low on Friday to extend their daily cycle decline.

Stocks needed to break below the day 32 low and turn the 10 day MA lower in order to complete its daily cycle decline — done.

This does not mean the Friday was the DCL. Stocks could still drop lower. However, stocks did break below the daily cycle trend line as well on Friday. Friday was day 37, placing stocks in their timing band for a DCL. With stocks currently being in a daily uptrend, a swing low and close back above the 10 day MA will indicate a continuation of the daily uptrend and signal a cycle band buy signal. In which we would then label day 37 as the DCL. A break above 4081.51 will form a daily swing low.