Cycle Trading

Stocks formed a bearish engulfing candle on Thursday.

The decline into the day 35 low did not turn the 10 day MA lower so it is not clear if Thursday was day 11 of a new daily cycle or day 46 of a stretched daily cycle. What is clear is that stocks formed a bearish engulfing candle on Thursday and closed below the 10 day MA. Any bearish follow through will signal the daily cycle decline. A break below 6327.64 will form a swing high. Stocks are currently in a daily uptrend. Stocks will remain in their daily uptrend unless they close below the lower daily cycle band.