Stocks were once again rejected by the 1885 level on Thursday.
Today was day 13 for the daily equity cycle and stocks set a new daily cycle high. We are expecting for stocks to roll over into an intermediate cycle decline. Therefore we should see stocks form a left translated cycle. Left translated daily cycles usually peak by day 20.
Stocks did deliver another signal of an impending cycle decline.
Stocks delivered a 248 million Selling on Strength Print today. There was a 113 million SOS on 4/24 and another 162 million SOS on 4/28. Which totals 523 million in just over the past week. These SOS numbers are beginning to add up. And if stocks are about to roll over that will likely lift bonds higher.
The daily bond cycle peaked on day 16. The subsequent decline broke below the daily cycle trend line and formed a swing low off the day 18 print. A break to new highs signals a new daily cycle. While there is a possibility today was actually day 20, I believe that today was day 2 and bonds are rallying in anticipation of a daily equity decline.