Cycle Trading

Stocks formed a swing low on Wednesday. However, stocks formed a swing high on Thursday.

Forming a swing high on Thursday negates Wednesday’s swing low.

Thursday’s swing high negates Wednesday’s swing low to extend the daily cycle decline.   Stocks are currently in a daily downtrend. Forming a swing high below the lower daily cycle band indicates a continuation of its daily downtrend and signals a cycle band sell signal.

Moving on to the yearly cycle we can see that stocks have formed a monthly swing high and is in the process of breaking below the 10 month MA to signal the yearly cycle decline.

Something that we need to start to discuss is the multi year cycle decline — which I plan to do in the Weekend Report.