A Shot Across the Bow

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Stocks have struggled since closing at new all time highs.

spx

Stocks closed at an all time high on Monday. Stocks went on to print a higher high Tuesday, before closing lower. Although stocks printed a higher high once again today, they closed lower for a second consecutive day. A swing high and trend line break would open up the possibility of stocks forming a left translated cycle, which could lead to an intermediate cycle decline.

The transports have been printing lower highs since December.

Trannies

They lost the 50 day MA in March, backtested it and was rejected in April and in May. The transports were rejected by the declining 50 day MA once again on Tuesday and now lost the 200 MA today and formed a failed daily cycle.

The non-confirmation of new highs in stocks by the transports could be a shot across the bow for the stock market.

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