Today was day 21 for the daily equity cycle and stocks continued to drift lower.
Stocks could be setting a half cycle low. But with this being the third daily cycle, stocks may have begun their decline into an intermediate cycle low.
At 19 weeks, stocks are in their timing band to seek out an intermediate cycle low. Stocks cannot begin their intermediate decline without forming a weekly swing high, which they have done.
The next step is for a failed daily cycle. Currently a peak on day 16 favors a left translated cycle formation, which holds the expectation of a failed daily cycle. So unless stocks can recover soon, they will begin to feel the gravitational pull of the impending intermediate cycle low.