Stocks have been on a tear since October after the Fed began Repo operations.

SPX

Stocks barely gave us a recognizable daily cycle low in early December.  Stocks have since continued rallying.  Stocks formed a swing high on Wednesday, day 34.  That does place stocks in their timing band for a daily cycle decline.  There are bearish divergences developing on the oscillators which normally precede a cycle decline.  So Thursday's
swing high could send stocks to seek out their daily cycle low.  A close below the 10 day MA would indicate that the daily cycle is in decline.  However, if stocks form a swing low and continue higher, then stops could be raised to Thursday's low of 3301.87.

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