Stocks peaked on Wednesday, day 13. They formed a daily swing high on Thursday and broke below the daily cycle trend line on Friday to signal a daily cycle decline.
Stocks delivered more bearish follow through on Monday to close below the upper daily cycle band. Stocks have been in a daily uptrend. However if stocks close below the lower daily cycle band, that will signal an end to the daily uptrend.
There are signs developing on the weekly chart that points to a longer term correction.
This week is week 18 for the intermediate equity cycle which means that stocks have entered their timing band to seek out an intermediate cycle low. Stocks have now formed a weekly swing high and broke below the weekly trend line. Barring a bullish reversal, this signals the start of the intermediate cycle decline.
The banks also appear to have started their intermediate decline.
The banks peaked on week 15, as they breached the 50 week MA. Banks formed a weekly swing high last week. And this week they have breached the intermediate trend line to signal the start of its intermediate cycle decline.