Cycle Trading

Stocks broke above the day 8 high on Tuesday, to close at a new all-time high.

The new high on day 24 locks in a right translated daily cycle formation. We need to keep in mind that at 24 days, the daily cycle is getting mature and that there are bearish divergences developing on the oscillators. At this point, a swing high and a close below the 10 day MA would signal the daly cycle decline. However, stocks are still in a daily uptrend. They will remain in their daily uptrend unless they close below the lower daily cycle band.