Cycle Trading

Prior to Trump’s speech, markets were expecting a 10% tariff across the board – –which did not happen.

Stocks broke below the day 41 low on Monday but formed a bullish reversal. It looked, in real time, like a stop run — which would have extended the daily cycle decline and make Monday day 53. That was negated after Trump’s speech on Wednesday.

Stocks dropped 4.84% on Thursday. Thursday was only day 15 of a failed daily cycle. Stocks could trend lower for another 2 – 3 weeks to get in their timing band for a daily cycle low. 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.