Stocks suffered a sharp selloff on Thursday, breaking below their day 32 low. This failed daily cycle confirms that stocks are in an intermediate cycle decline.
The decline has now extended to day 36, placing stocks deeper into the timing band for a DCL. While the failed daily cycle is a bearish development, the extended decline also raises the possibility that stocks are approaching a more significant cycle low.
The potential alignment of multiple cycle lows is becoming increasingly interesting.
I plan to examine what this developing alignment means for the intermediate and yearly cycles in Saturday’s Weekend Report.
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