Tuesday was day 31 for the daily equity cycle and stocks printed a new high.
Stocks have long since locked in a right translated daily cycle formation. But at 31 days, stocks have entered their timing band to seek out a daily cycle low. And Tuesday’s narrow range day has eased the parameters for forming a daily swing high. A break below 2178.61 will form a daily swing high. Then a break below the daily cycle trend line will confirm the daily cycle decline.
Biotech appears to have already started their daily cycle decline.
IBB has formed a daily swing high following the day 27 peak. Tuesday’s break of daily cycle trend line signals that biotech has begun its daily cycle decline.
Both stocks and biotech are in a daily uptrends. They will remain in a daily uptrends unless they closes below their respective lower daily cycle bands.