Cycle Trading

Stocks formed a bearish reversal on Friday.

The big picture show us that stocks have not formed a recognizable DCL since late October.  Friday was day 43, placing stocks deep in their timing band for a DCL. Friday’s bearish reversal eases the parameters for forming a swing high. A break below 5117.50 will form a swing high. Then a close below the 10 day MA will signal the daily cycle decline. Stocks are currently in a daily uptrend.  They will remain in their daily uptrend unless they close back below the lower daily cycle band.