Cycle Trading

Stocks broke bearishly out of consolidation on Tuesday then delivered bearish follow through on Friday.

Since the day 15 high is lower than the July high, this ends the pattern of higher highs. Friday was day 23, placing stocks in the early part of its timing band for a DCL Stocks could still trend lower for another 5 to 15 days before forming their DCL.  Stocks closed below the lower daily cycle band on Friday. Closing below the lower daily cycle band ends the daily uptrend and begins a daily downtrend. Closing below the lower daily cycle band also signals the intermediate cycle decline, which I discuss in the Weekend Report.