Stocks were unsuccessful at trying to break above the declining trend line on Wednesday. They delivered more bearish follow through on Thursday.
Thursday was day 18 for the daily equity cycle. Stocks closed below the 50 day MA on Thursday. With a peak on day 9, this daily cycle is forming as a left translated daily cycle. Left translated cycles typically fail, leading to an intermediate cycle decline. A break below the previous daily cycle low of 2067.93 forms a failed daily cycle.
This syncs up with a sell signal that I received on the FAS Buy/Sell Indicator.
(The FAS Buy/Sell Indicator is a signal that I provide to subscribers.)
The FAS Buy/Sell Indicator is a signal that I developed that has proven to be quite reliable at helping to spot tops. The FAS Buy/Sell Indicator as another tool in the tool box for equity studies.