Cycle Trading

Stocks continued lower on Tuesday.

Tuesday was day 38, placing socks in their timing band for a DCL. Either the (blue) 50 day MA or the (red) 200 day MA could be 2 possible support levels for the pending DCL. A swing low off support from either of these two moving averages would signal the DCL. However stocks did close below the lower daily cycle band on Tuesday. Closing below the lower daily cycle band ends the daily uptrend and begins a daily downtrend. Closing below the lower daily cycle band also indicates that the intermediate cycle decline has begun – which I plan to discuss further in the Weekend Report.