Cycle Trading

CNN’s Fear and Greed Index has registered “Extreme Fear” two consecutive days. And we. know what Mr Buffet would say … “Be greedy when others are fearful.”“

Stocks dropped on Monday.  Monday was day 33, placing stocks in their timing band for a daily cycle low. There are bullish divergences developing on the oscillators.   Stocks managed to rally off the lows of the day, which helps to eases the parameters for forming a swing low. A break above 5986.09 will form a swing low. Then a close above the converging 50 day MA and the 10 day MA will signal the new daily cycle.  Stocks are currently in a daily downtrend. Stocks will remain its daily downtrend unless they close above the upper daily cycle band.