Cycle trading: Stock print bearish reversal
|Stocks broke out to a new daily cycle high on Monday before forming a bearish reversal to close lower on the day.
Last week stocks coiled above the 3150 resistance level. Friday's bullish close appeared to set the stage for another leg higher for this daily cycle. That all changed on Monday. Stocks formed a bearish reversal on Monday. If stocks delivered bearish follow through and close below the 3150 resistance level that would signal the daily cycle decline. In the Weekend Report I will explain why this could lead to an intermediate cycle decline.
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