Cycle Trading

Stocks formed a daily swing high on Thursday..

The 10 day MA did not turn lower as stocks declined into the day 35 low, therefore we are uncertain if the day 35 was a daily cycle low. Therefore the status of the daily cycle is not clear. Thursday could be day 52 of a stretched daily cycle or day 16 of the 3rd daily cycle for the current intermediate cycle. However, it appears that stocks are acting as if day 35 was the DCL. Either way stocks are due for a correction. If stocks deliver bearish follow through and close below the 10 day MA that will signal the daily cycle decline. Stocks are in a daily uptrend. They will remain in their daily uptrend unless they close below the lower daily cycle band.