Cycle Trading

Stocks broke to a new low this week to extend its intermediate cycle decline.

This was week 23, placing stocks in their timing band for an ICL. Stocks rallied this week to close back above the 10 week MA to signal week 23 as the ICL. Stocks should have turned the 10 week MA lower in order to complete their intermediate cycle decline.  However, stocks did not turn the 10 week MA lower at the previous ICL and it appears that it will not do so again. Stocks are currently in a weekly uptrend. A weekly swing low and a close above the declining weekly trend line will indicate a continuation of its weekly uptrend and signal a weekly cycle band buy signal — in which will label week 23 as the ICL.

I break down what this means for the yearly cycle decline in The Weekend Report .