Cycle Trading

All of the major indices formed a swing low on Thursday.

Stocks closed below the 10 day MA on Tuesday, day 34, to signal the daily cycle decline. Stocks went on to form a swing high Wednesday, day 35, which placed stocks in their timing band for a DCL.  Stocks should turn the 10 day MA lower in order to complete its daily cycle decline — which may not happen. 

Stocks have been very bullish since early April.   Notice that neither May day 33 DCL and nor the June day 19 HCL turned the 10 day MA lower. It appears that it will not happen again. With stocks currently in a daily uptrend, a bullish break out of consolidation would indicate a continuation of its daily uptrend and signal a cycle band buy signal  — in which we would then label day 35 as the DCL.