Despite printing a higher high on Friday, the bearish reversal suggests a daily cycle decline is imminent.
The dollar closed below the upper cycle band Friday signaling the daily cycle decline. A break below the daily cycle trend line will confirm the daily cycle decline and align with the triangle consolidation we see on the weekly chart, which is included in the Weekend Report.
The daily equity cycle peaked on day 9 and printed a half cycle low on day 14. Stocks were turned lower by the upper cycle band on day 18. Stocks then continued lower through Friday piercing both the 200 day MA and the daily cycle trend line.
Friday was day 23 for the daily equity cycle. Not only did stocks pierce the daily cycle trend line and the 200 day MA, they also closed below the lower cycle band. The close below the lower cycle band signals an intermediate cycle decline.
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