Cycle Trading

PRE-SUMMARY

Stocks signaled the daily cycle decline after breaking below the 10 day MA. Focus now shifts to the rising 50 day MA for possible support.

Stocks formed a swing high on Friday, day 31, placing them in their timing band for a DCL.

Stocks then closed below the 10 day moving average on Tuesday to signal the daily cycle decline. Stocks should now go on to turn the 10 day moving average lower as they continue seeking out their DCL.  Our attention will now turn to the rising 50 day moving average, which is becoming an important near-term support level to watch for the daily cycle low to form.

However, signaling a daily cycle decline does not automatically end the larger uptrend structure. Stocks are currently in a daily uptrend. Stocks will remain in their daily uptrend unless they close below the lower daily cycle band. If stocks find support near the rising 50 day moving average and form a swing low, then the larger daily uptrend structure may remain intact despite the current cycle decline.

Cycle Alignment

• Bullish