Stocks formed a bullish weekly reversal above support from the 50 week MA last week. Bullish follow through this week would have set up a half cycle low. Instead, the weekly outlook for stocks takes a bearish turn.
Stocks tested the 10 week MA on Tuesday. However they were soundly rejected by the 10 week MA on Wednesday. This is causing the weekly candle to form as a bearish reversal which negates last week's bullish reversal. With a peak on week 7 that sets the intermediate cycle up for a left translated weekly formation. Since left translated cycles typically result as failed cycles, this week's bearish reversal that is forming is setting up the expectation for stocks to break below the June low has it seeks out its intermediate cycle low.