Cycle Trading

While The Fed left interest rates unchanged at their 22-year high, Powell signals that there will be one more hike this year.

The peak on day 10 locks in a left translated daily cycle formation. Stocks closed below the converging 10 day MA and 50 day MA on Friday then delivered bearish follow through on Tuesday and Wednesday. Stocks closed below the lower daily cycle band on Wednesday. Closing below the lower daily cycle band ends the daily uptrend and begins a daily downtrend. Closing below the lower. daily cycle band also signals that stocks are extending their intermediate cycle decline. A break below the previous DCL of 4335.31 will form a failed daily cycle.