The Miners have started their daily cycle decline.
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.
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.
The transports did not confirm the higher high. A swing high has already formed and the transports are also threatening a trend line break.
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.
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.