Cycle Trading

Stocks printed a new daily cycle high on Tuesday, day 16, which shifts the odds towards a right translated daily cycle formation.

Stocks are currently stretched above the 10 day MA. Stock may need to consolidate to allow the 10 day MA to catch up to price or possibly backtest the converging 10 day MA and 50 day MA. However the previous 2 daily cycles were stretched at 49 and 53 days respectively. So it is possible to see a shortened daily cycle, which would help to balance out the cycle counts. A break below 4086.87 will form a swing high. Then a break below the daily cycle trend line will signal the daily cycle decline. Stocks are currently in a daily uptrend. They will remain in their daily uptrend unless they close below the lower daily cycle band.