The daily equity cycle peaked on day 17. A swing high formed the next day that closed below the lower daily cycle band sending stocks into their daily cycle decline. Stocks continued lower this week printing their lowest point on Tuesday since the day 17 peak. But then Wednesday and Thursday stocks starting showing some signs of life.
A swing low formed on Wednesday and stocks closed higher today tagging the 10 day MA. The low on Tuesday, day 25, is a bit too early for a daily cycle low. Quite likely this is a half cycle low. The 734 million Selling on Strength today a aligns with this scenario. Stocks will remain in a daily cycle decline as long as stocks continue to close below the lower daily cycle band. So while stocks showed some signs of life, at day 27 stocks can trend lower for another 2 – 4 weeks before printing their daily cycle low.