Trouble Brewing

http://imageshack.com/a/img840/6513/8mc3.jpg

The Miners have started their daily cycle decline.

http://imageshack.com/a/img841/6563/f79mw.jpg

Tuesday was day 18 for the daily Miner cycle. The Miners printed a huge bearish engulfing candle and lost a whopping 3.24% today. We still need a swing high to form and today eased the parameters for doing so. A break below 25.40 forms a swing high. Then we look for a daily cycle trend line break to confirm the daily cycle decline. The Miners should easily fill the first gap on the way to a trend line break They may or may not fill the second gap on the way to forming a daily cycle low.

Meanwhile trouble is brewing for stocks.

http://imageshack.com/a/img853/9307/mu9u.jpg

Even though stocks set another all time high on Tuesday, a bearish engulfing candle printed as well. That has eased the parameters for forming a swing high. Should a swing high form and stocks break below the trend line that will signal that stocks have begun their daily cycle decline.

The transports also look ready to roll over.

http://imageshack.com/a/img819/1392/4o6g.jpg

The transports did not confirm the higher high. A swing high has already formed and the transports are also threatening a trend line break.

http://imageshack.com/a/img856/5923/wbhb.jpg

The Russell broke to a new daily cycle high today and then printed a bearish reversal. Any break lower will form a swing high. The Russell is also closing in on a trend line break.

http://imageshack.com/a/img843/9685/htajk.jpg

The Dow already formed a swing high on Monday. Today’s bearish engulfing candle has breached the trend line signaling a daily cycle decline. A clear and convincing break of the trend line will confirm the daily cycle decline.

Advertisements

2 thoughts on “Trouble Brewing

  1. Pingback: It’s About Time | Cycle Trading

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s