Stocks once again were rejected by the 10 day MA and closed below the 200 day MA.
Following the daily cycle peak, stocks printed their lowest point on Tuesday then went on to tag the 10 day MA. Wednesday they were soundly rejected by the 10 day MA and closed below the 200 day MA. Once again today stocks were rejected by the 10 MA and closed below the 200 day MA. While our daily cycle count is not clear , what is clear is that stocks are currently in a failed daily cycle. And we are looking for a swing low and declining trend line break to signal a new daily cycle.
Meanwhile, the daily bond cycle appears to have peaked on day 7 — again.
This is the third daily cycle that bonds peaked on day 7 and formed a swing high on day 8. Not only did bonds form a swing high but they closed below the 50 day MA in a clear and convincing manner. A break below the developing daily cycle trend line would deliver an early warning for another failed daily cycle.