Cycle Trading: Intermediate cycle decline
|Stocks continued lower on Monday.
Stocks undercut the day 62 low on Friday to extend its daily cycle decline. Stocks delivered bearish follow through on Monday by closing below the lower daily cycle band. Closing below the lower daily cycle band ends the daily uptrend and begins a daily downtrend. It also signals the intermediate cycle decline.
This is week 26 for the intermediate equity cycle. That places stocks deep in their timing band for an intermediate cycle low. Stocks are also very deep in its timing band for a daily cycle low. So once stocks print their DCL, it has good odds of also marking the ICL. A swing low and close back above the declining trend line will signal the daily cycle low.
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