The daily equity cycle peaked on day 8 and proceeded to decline. Stocks formed a swing high on day 9, loss the 50 day MA and printed an early half cycle low on day 13.
The rally out of the day 13 half cycle low broke back above the 50 day MA only to turn and once again lose the 50 day MA, forming the declining cycle trend line.
Today stocks attempted to regain the 50 Day MA but was rejected by the declining cycle trend line. Today was day 18 for the daily equity cycle. Today’s rejection by the declining trend line should send stocks into their daily cycle low. Stocks will enter their timing band for a daily cycle low about day 30, which leaves over two weeks for stocks to continue lower. With a peak on day 8, this daily cycle is in the process of forming in a left translated manner. A left translated cycle will likely break below the December low of 1972.56 forming a failed daily cycle and confirming the intermediate cycle decline.