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Cycle Trading

Change Of Behavior- Update

Stocks signaled a change in behavior by closing below the 20 day MA on Thursday.

However, stocks did not deliver any bearish follow through on Friday.

Instead stocks rallied and closed back above the 20 day MA. Thursday was day 61 placing stocks very deep in their timing band for a DCL.

Stocks are currently being contained by the 10 day MA. A swing low and close back above the 10 day MA will have us label day 61 as the DCL.

I suspect that Smart Money will sell into the pending rally out of the DCL. I discuss why in the Weekend Report.

2 responses to “Change Of Behavior- Update”

  1. Wanda Cagle Avatar
    Wanda Cagle

    In your comments on the chart, you have noted both the 10 & 20 day moving averages. There is only 1 shown on your charts. Which is it??

    Reply
    1. likesmoneystudies Avatar
      likesmoneystudies

      Hi Wanda,
      I typically post charts with using the 10 day MA.
      However, The first 2 charts today I used the 20 day MA.
      I updated those charts labeling the 20 day MA.
      Sorry for the confusion.
      LM

      Reply

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