Cycle Trading: Day of Reckoning — Delayed
|This its week 27 for the intermediate equity cycle. Since only 2 out of the previous 10 intermediate cycles stretched past 26 weeks, stocks are deep in their timing band for an intermediate cycle decline. And Thursday's action seems to have postponed the day of reckoning for another 6 - 8 weeks.
Stocks did form a weekly swing high this week. A weekly swing high this deep in the weekly cycle should send stocks into their intermediate cycle decline. However, stocks printed a daily swing low on Thursday. The daily swing low formed above the lower daily cycle band to trigger a cycle band buy signal. The daily swing low also indicates that Wednesday was the daily cycle low. A close above the 10 day MA will confirm the new daily cycle. And if a new daily cycle is confirmed, that will shift the intermediate cycle low out for another 6 to 8 weeks.
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