On October 27th, we discussed the developing daily cycle decline and the conditions needed to signal a daily cycle low (DCL) in Stocks — What to Watch Next.
Since then, stocks have continued lower, breaking below their day 27 low and extending the daily cycle decline to day 32. That places stocks deep in their timing band for a DCL.
Stocks have now formed a swing low, raising the possibility that their daily cycle decline is nearing completion. However, stocks remain below the 10 day MA. A close above the 10 day MA is needed to signal the DCL.
Cycle timing suggests that a turn may be approaching, but price has yet to provide the evidence needed to signal it.
Stocks are currently in a daily downtrend. Stocks will remain in their daily downtrend unless they close above the upper daily cycle band.
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