Cycle Trading

There have been 3 bearish signals recently for stocks.

First, stocks printed a huge bearish engulfing candle on day 22 that closed below the 10 day MA. Second, there are bearish divergences developing on the oscillators, that often precede a cycle decline. Third, the 10 day MA is beginning to flatten out. At day 25, stocks are nearing their timing band for a daily cycle low. A swing high and close below the10 day MA will signal the daily cycle decline.