Cycle Trading

Stocks ran into resistance on Thursday at the previous daily cycle high.

With stocks forming a weekly swing low last week, I believe that stocks are in a new intermediate cycle and possibly a new yearly cycle (all of which I will update in this week’s Weekend Report). The expectation for the first daily cycle of a new intermediate cycle is to right translate. The initial surge out of the DCL caused stocks to get stretched above the 10 day MA. Stocks are now consolidating below resistance from the previous daily cycle high. Stocks are currently in a daily uptrend. A bullish break out of resistance will indicate a continuation of its daily uptrend and signal a cycle band buy signal.