Cycle trading: Resistance
|Stocks ran into resistance at the 50 day MA.
Stocks formed a swing low on Friday then closed above the declining trend line on Monday to confirm the new daily cycle. While stocks are running into resistance at the 50 day MA, it is not likely that the new daily cycle has topped here. Going back to 2014 the earliest a daily cycle topped was at 8 days. Notice that during the daily cycle decline stocks found support at the 50 day MA and needed on consolidate for 8 days prior to breaking below. So it stands to reason that some consolidation is needed now before stocks can continue to rally.
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