Stocks delivered caution signals on Monday.
Monday was day 31 for the daily equity cycle, placing stocks in their timing band for a daily cycle low. There had been bearish divergences developing on the oscillators that yielded to bearish crossovers on Monday. Stocks also formed a daily swing high on Monday. At 31 days, a close below the 10 day MA will signal the daily cycle decline. Stocks should then go on to break below the daily cycle trend line as it seeks out its daily cycle low. Stocks are currently in a daily uptrend and will remain so unless they close below the lower daily cycle band.