Cycle Trading

Stocks (finally) formed a swing low on Wednesday.

Stocks printed their lowest point on Tuesday, day 38, placing them in their timing band for a daily cycle low.  Wednesday’s swing low signals the new daily cycle. We will need to see a close above the converging 10 day MA and 200 day MA in order to label day 38 as the DCL.  Stocks are currently in a daily downtrend.  Stocks will remain in their daily downtrend unless they close above the upper daily cycle band.