Cycle Trading

Stocks formed a swing low on Monday.

Stocks printed their lowest point on Friday, day 72, placing them very deep in their timing band for a DCL. Monday’s swing low has good odds of marking the DCL. We will use a close above the 10 day MA to label day 72 as the DCL.

We will also need to watch the 50 day MA. A close above the 50 day MA would shift the odds that the ICL has been set. But if stocks are rejected by the 50 day MA, that will indicate a continuation of the intermediate cycle decline