Cycle Trading: Stocks Update
|Stocks formed a swing high on Thursday
Stocks found support at the 50 day MA on day 62. They formed a swing low and delivered bullish follow through to look, in real time, that stocks were emerging from an extended 62 day daily cycle low. But stocks were rejected by the 10 day MA on Wednesday and formed a swing high on Thursday. Since stocks did not close above the 10 day MA and turn it higher to confirm day 62 as the DCL, Thursday's swing high signals that stocks are extending their daily cycle decline. That makes Thursday -- day 66. Stocks should break below the day 62 low of 3310.47 in order to complete their daily cycle decline. And since stocks formed a swing high, that allows us to reconstruct the declining trend line to the dashed trend line. A swing low and a close above the declining (dashed) trend line will signal the new daily cycle.
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