Cycle Trading: Are Bonds About to Begin a New Daily Cycle?
|Bonds formed a swing low on Monday.
Bonds printed their lowest point on Friday, following the day 29 peak. Friday was day 35, placing bonds deep in their timing band for a daily cycle low. So Monday's swing low signals a new daily cycle. A close above the 10 day MA will confirm the new daily cycle.
Something that I am watching is that bonds were in a daily uptrend prior to their recent daily cycle decline. That daily uptrend was characterized by highs forming above the upper daily cycle band and lows forming above the lower daily cycle band. However bonds closed below the lower daily cycle band on Thursday. Closing below the lower daily cycle band ends the daily uptrend and signals that the intermediate cycle decline is beginning.
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