Cycle Trading

Stocks have been consolidating below the 6750 level — until Wednesday.

Stocks closed above the 6750 level on Wednesday. While stocks broke out to a new high on Thursday, that was reversed and stocks closed lower on the day — closing below the 6750 level. Thursday was day 27, placing them in their timing band for a daily cycle low. Thursday’s bearish candle eases the parameters for forming a swing high. A swing high with a close below the 10 day MA will signal the daily cycle cycle decline. A break below 6716.17 will form a swing high.