Cycle Trading

Stocks formed a daily swing high and closed back below the 10 day MA on Wednesday.

Stocks had been consolidating in between the declining 50 day MA and the rising 10 day MA — until Wednesday. Stocks delivered bearish follow through by closing below the lower daily cycle band. With the current high on day 10, this sets stocks up for a potential left translated daily cycle formation. Stocks are currently in a daily downtrend. Closing back below the lower daily cycle band indicates a continuation of its daily downtrend and signals a cycle band sell signal. A break below the previous DCL of 4216.45 will form a failed daily cycle, extending the intermediate cycle decline.