Cycle Trading: Stocks Signal Possible Bearish Turn
|Stocks formed a daily swing high on Monday.
Monday was day 29 for the daily equity cycle, placing stocks 1 day short of entering their timing band for a daily cycle decline. So Monday's swing high could send stocks into their daily cycle decline. Next we look for a close below the 10 day MA. At this point in the daily cycle, a close below the 10 day MA usually results in the daily cycle decline. Then once stocks close below the 10 day MA they should break below the daily cycle trend line in order to form their daily cycle low.
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