Cycle Trading

Stocks broke below the day 33 low on Thursday to extend its daily cycle decline.

Thursday was day 39, placing stocks deep in its timing band for a DCL.  We will be watching the rising 50 day MA for possible support for a swing low to form. A close below the 50 day MA could lead to a bloodbath phase. Stocks closed below the lower daily cycle band on Thursday. 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 has started — which I plan to discuss in the Weekend Report.