Cycle Trading

Stocks were rejected by the 50 day MA on Wednesday, but found support at the 200 day MA on Thursday.

It appears that stocks did “enough” to label day 53 as the DCL. Stocks closed above the 200 day MA and the 10 day MA as it rallied out of the day 53 low. Stocks broke the declining trend line.

Stocks even have begun to turn the 10 day MA higher.

Stocks are now 23 weeks into its intermediate cycle. A peak on day 7 would set stocks up for a left translated daily cycle formation. Stocks formed a swing high on Thursday. Stocks are currently in a daily downtrend. A close below the converging 200 day MA and 10 day MA will indicate a continuation of the daily downtrend and signal a cycle band sell signal.