Cycle Trading

Stocks closed convincingly below the converging 10 day MA and 50 day MA on Friday.

Stocks also closed below the daily cycle trend line on Friday to signal the daily cycle decline. Friday was only day 19. Stocks could trend lower for another 2 to 3 weeks before forming its DCL. The peak on day 10 locks in a left translated daily cycle formation. A break below the previous DCL of 4335.31 will form a failed daily cycle and extend the intermediate cycle decline. Stocks are currently in a daily uptrend. But a close below the lower daily cycle band will end the daily uptrend and begin a daily downtrend.