Bearish Rumblings


The daily equity cycle peaked on day 13 and then formed a swing high on day 14. Even though stocks posted a gain today there are signals that some type of decline is imminent.


The first daily cycle of a new intermediate cycle should form as a right translated cycle, peaking after day 20. Currently, stocks are testing the daily cycle trend line. A trend line break here should send stocks into a half cycle low.

It appears that Biotech has already begun a mid-cycle decline.

2 spx z ibb

Biotech’s daily cycle peaked on day 12 and formed a swing high on day 13. The bearish follow through today, day 15, shows a clear and convincing trend line break confirming a cycle decline with the broader market likely to follow.

2 spx z z z

Stocks also printed 305 million on Selling on Strength. This further supports the notion that stocks are poised for at least a mid cycle decline.


Leave a Reply

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

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

Google+ photo

You are commenting using your Google+ 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 )


Connecting to %s