Cycle Trading

Stocks closed below the 4135 resistance level back in the consolidation zone on Thursday.

At 26 days, stocks are nearing their timing band for a daily cycle decline. Closing back in the consolidation zone shifts the odds that stocks are beginning their daily cycle decline.

The next thing we are watching for is a close below the 10 day MA.

Then a break below the daily cycle trend line will send stocks to seek out their DCL.