Cycle Trading

Stocks made a new daily cycle high on Thursday. The new high on day 22 assures us of a right translated daily cycle formation. Stocks are also approaching resistance at the 200 day MA. Stocks are currently in a daily uptrend. A close above the 200 day MA will indicate a continuation of its daily uptrend and signal a cycle band buy signal. However, the daily cycle is starting to get mature and there are bearish divergences developing on the oscillators. Rejection by the 200 day MA with a close below the 10 day MA will signal the daily cycle decline.