Cycle Trading

Stocks printed its lowest point on day 25, placing it in the early part of its timing band for a DCL. Wednesday’s swing low closed back above the 10 day MA.  With stocks in a daily uptrend, that signaled day 25 as the DCL. That was negated on Thursday.

Stocks formed a swing high and closed back below the 10 day MA on Thursday. That negates Wednesdays swing low and calls into question if day 25 was the DCL. A break below the day 25 low of 6029.89 will extend the daily cycle decline. But a close above Tuesday’s high of 6092.59 will signal a continuation of the daily uptrend and signal a cycle band buy signal — in which we would then label day 25 as the DCL.