Cycle Trading

Stocks are getting stretched above the 10 day MA as they run into resistance at the 50 day MA.

Stocks may need to consolidate to allow the 10 day MA to catch up to price. Stocks are currently in a daily downtrend. If stocks are rejected by the 50 day MA and close back below the 10 day MA that will indicate a continuation of its daily downtrend and signal a cycle band sell signal. That will also shift the odds that stocks are still declining into their intermediate cycle low. However, a close above the 50 day MA will begin to shift the odds that the day 44 daily cycle low was also an early ICL.