Stocks are till caught between the 10 week MA and the 50 week MA. We will need to be a convincing break either above the 10 week MA or below the 50 week MA trending move to develop.
This is week 13 for the intermediate equity cycle. The peak on week 7 sets stocks up for a left translated daily cycle formation. With the 10 week MA beginning to move lower, it looks more and more like stocks are beginning their intermediate cycle decline.
Tuesday was day 20 for the daily equity cycle. The peak on day 6 indicates a left translated daily cycle formation. Even if stocks were to break above the day 6 high to right translate this daily cycle, it is not likely for stocks to be able sustain a trending move. The best strategy at this point may be to wait for stocks to print their intermediate cycle low. A failed daily cycle is needed for an intermediate cycle low. A break below the previous daily cycle low of 2822.12 will form a failed daily cycle. Once that happens we can start to look for that fat pitch.